Share

Ebrahim Patel: Four things the SA economy needs right now

Johannesburg – South Africa is facing huge challenges, but there are four things the economy needs right now, says Minister of Economic Development Ebrahim Patel.

Speaking at the Progressive Business Forum breakfast at the 54th ANC national conference on Tuesday, he pointed out that much progress has already been made.

He outlined the economic situation in the country as well as the challenges of low growth, a credit rating downgrade and high levels of youth unemployment, among others. But Patel also noted economic strengths such as a robust media, deep financial markets and the resilient democracy.

“We have a lot going for us, we have a lot of challenges, and that’s the complexity of the modern South Africa. Huge progress and big challenges,” he said.

Patel shared four things that need to be addressed urgently to drive further progress.

1. A credible growth story

“We need to have a credible growth story that identifies the sectors of the economy that grow fast and that can create jobs at scale, and do this at a practical scale,” he said.

2. Transformation

“We need to transform the economy. This means bringing young people, the energy of any nation, into the economy in larger numbers.

“Ensuring that black South Africans are part of the economy, not only for equity purposes, but because there is a compelling, economic advantage in expanding the talent pool of the economy to cover every South African.”

3. Good governance

The governance challenges  - in the public and private sector - must be addressed. “Dealing with corruption and state capture, we must talk openly about these things and deal with issues of corporate collusion.

“The challenge I think is impressed so starkly that we sit today with a storyline that we can change. A storyline on the one hand points to state institutions that are currently under investigation for probity issues, for whether they have ensured integrity in tender processes and how they deal with the private sector. Issues of state capture are important.

“In the private sector we have had the Steinhoff collapse, which has raised serious questions of fraud committed on a large scale in blue chip companies,” said Patel.

He added that allegations against large companies seeking to gain public favour through inappropriate means are among the issues that must be dealt with in South Africa’s robust democracy.

4. Partnerships

South Africans, business, labour and government must work together to achieve higher levels of growth, said Patel.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.2%
Platinum
908.50
+1.3%
Palladium
1,017.25
+1.5%
Gold
2,220.32
+1.2%
Silver
24.84
+0.8%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders