Business News: SA Needs Economic Reform Policies That Work for the Country, Says Economist
- A South African economist says that South Africa needs to work on economic policies that work for its people
- She says there are a number of industries such as agriculture and tourism that have the potential to grow but are not given support
- Finance Minister Enoch Gondongwana also speaks of developing industrial policies to help South Africa create employment
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JOHANNESBURG - South African economist and founder of economic consulting and advisory company Naha Investments, Dr Thabi Leoka, says in order for South Africa's economy to prosper, there is a need for economic reform policies in the country.
Leoka says South Africa also needs to realign its policies and focus its efforts on getting the basics right first. She added that South Africa's economy is not what it tries to be.
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She added for South Africa's economy to better prosper, the government needs to focus on fixing the education system, rework the economic policies that are not working for the South African population as well as deploying the spectrum as fast as feasible in the telecoms space, reports BusinessTech.
Leoka says South Africa's economy has the potential of growing at a rate between 4% and 5% if the government and the private sector were to come together and invest in developing more infrastructure projects.
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According to Leoka, South Africa has a diversified economy that, if properly utilised, may provide development and growth. Leoka says the problem is South Africa is using the model of a Ferrari while it has the engine of Fiat Uno to run the economy.
“You cannot use a Ferrari effectively if you have an engine of an Uno in that supercar," says Leoka.
One of the problems highlighted by Leoka, is that industries such as agriculture, manufacturing and tourism are not growing as fast as they should. She added that if these sectors are prioritised they could yield much-needed employment opportunities in South Africa.
Minister of Finance Enoch Gondogwana, who has the tough job of reviving South Africa's economy, highlighted the issues with the country's economy at a virtual book launch on Tuesday.
According to Fin24, Gondogwanaa stated that one of the issues in South Africa is that the country is is de-industrialising which means industries such as manufacturing are no longer contributing to the GDP of the country as they used to.
He added that if South Africa wants to change the economy's structure and generate greater growth and job creation, industrial policy must be at the forefront of its development plan.
Government Gives Basic Income grant the greenlight despite push back
Briefly News previously reported that talks of a Basic Income Grant for South African citizens have intensified in the past few months with some organisations being for the implementation of the grant and others warning that introducing the grant will be bad for the country.
It seems, despite warnings from Finance Minister Enoch Gondogwana that the country's budget is a little tight, the South African government plans to move ahead with the grant.
Minister in the Presidency Mondli Gungubele said in a television interview that the African National Congress has come to the consensus that a basic income grant is necessary for South Africans and they are currently exploring the best ways to implement it, according to Business Tech.
Source: Briefly News
