ANC not blaming recession on private sector - Mantashe

Jun 13 2017 19:44
Amanda Khoza, News24

Johannesburg – ANC secretary general Gwede Mantashe has clarified that he did not lay the blame solely on the private sector for South Africa slipping into a technical recession.

Mantashe was speaking at the time to a News24 reporter a day after Statistics SA revealed that the country had slipped into a recession after its gross domestic product declined 0.7% during the first quarter of 2017, after contracting by 0.3% in the fourth quarter of 2016.

On Tuesday, speaking to News24 at Luthuli House, Mantashe said his statements were not laying the blame solely on the private sector. 

“It cannot be true. All I raised was that unless we all work together particularly with the private sector, which owns 70% plus more of the economy, we are not going to come out of the hole easily.”

He said for the economy to grow, it required both the government and the private sector to communicate efficiently with one another.

“This includes the private sector not being locked into their irritation by the ANC and the president, in particular. The private sector must appreciate the fact that unless we develop a strategy that will work in the public and private sector, then it will take longer to get out of the hole.”

Mantashe said this means “we need to tamper out of our attitudes”.

“They must not get hardened and we must appreciate the fact that we know that we need each other because if you look into the factors that led to the recession and the downgrade, major is the growth of the economy.”

He said the economy would not grow if there was little investment.

“Particularly the private sector not investing in the economy. Once they invest in the economy, we will see the difference. Political uncertainty, that is our responsibility,” said Mantashe.

“We cannot continue having political instability in the country, we must take bigger responsibility for that but it should not be one versus the other.”

The question of fiscal management was very important, said Mantashe. “It is important that all of these issues are pulled together and we work together."   

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

anc  |  gwede mantashe  |  sa economy  |  recession



Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What’s on your gift list this Christmas?

Previous results · Suggest a vote