Johannesburg – Radical economic transformation calls for an end to superficial changes, said Finance Minister Pravin Gordhan.
Gordhan was delivering an address at Deloitte on Friday. He highlighted the importance of achieving growth that was inclusive, ensuring that all South Africans could share in the benefits of a thriving economy.
“Radical means to get to the root of something and to tackle it at root level,” Gordhan said. “Radical economic transformation means we can’t make superficial changes any longer to our situation.”
He added that radical economic transformation should be interpreted positively and should link up with the National Development Plan (NDP).
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Transformation is often seen as opportunities for individuals, although that is an important element, Gordhan said it was not the only element. “The life prospects of the majority of South Africans need to change.”
He added: “The majority of South Africans must get a sense that they are part of, or beneficiaries of the changes in the economy, to which they are contributing as well.” He said this is an issue that concerns all South Africans.
Growing the economy
Gordhan said that the economy should also become more diversified and less reliant on mining, going forward. “We must make the digital economy a bigger part of what we do in South Africa.” He added that there were also opportunities in the oceans economy.
More should be invested in the innovation, and research and development. Currently this investment is below 1%, compared with other countries whose levels are at 2% of GDP. This will take radical restructuring which won’t happen overnight, but over the next 20 to 30 years, said Gordhan.
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Apart from restructuring the economy for its growth, there also needs to be inclusivity, said Gordhan. One way to ensure this is to have a better vocational training system that will create opportunities for young people. Business people should be available to “absorb” them, he added.
“South Africa has the opportunity to show the world a model of inclusivity which can become a reality.”
He explained: “If we put our heads, hearts and ingenuity together as we did in creating the interim constitution and the final constitution in 1996, and get a political settlement we had without a drop of blood being shed, then equally we must be capable of bringing changes about in the economy as well.”
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