As the nation’s economy continues to get hit by political turbulence, Former Finance Minister Pravin Gordhan has kept to his words of helping to bring back the SA economy to its feet even when he is no longer the Treasury head.
It’s no news that SA is in a technical recession and has been downgraded by credit rating agencies and there’s a strong possibility of further downgrades.
Though several factors have been mentioned as causing the drastic drawbacks, ex-finance minister Pravin Gordhan, like many other well-known economists point fingers at the political and social conditions in the country.
Gordhan who chose not to withhold his expertise opinion on what must be done to resuscitate the nation’s economy mentioned three key areas his successor Malusi Gigaba must follow to bring the country back to track.
1) “We need reform in the management and governance in SOEs [State Owned Enterprises]”
2) “We need delivery on infrastructure projects.”
3) More certainty in policy-making.”We need a move in policy uncertainties, for example in the mining sector.”
“We as different sectors of South African society need to confront and appreciate the truth for what it is. We haven’t done enough to create a climate of confidence to grow the economy and jobs”, said Gordhan who is now a member of Parliament’s portfolio committee on public enterprises.Gordhan also said the country seems to be “dominated by short-term issues” as well as what’s emerged from the leaked Gupta emails on state capture.
Gordhan also said the country seems to be “dominated by short-term issues” as well as what’s emerged from the leaked Gupta emails on state capture.”We have been negatively affected by unwise political decisions,” Gordhan said. “We seem to be dominated by short-term issues and others which have risen from state capture reports.”
“We have been negatively affected by unwise political decisions,” Gordhan said. “We seem to be dominated by short-term issues and others which have risen from state capture reports.” he said while pointing out that South Africa is not building on its “well-recognised strengths” in sectors like tourism and innovation, for example.
“It is very clear that these are areas where we need movement,” Gordhan said. “We have well recognized strengths we are not building on like in the innovation and in tourism and in several other areas”
Pravin Gordhan was among the minister affected during Zuma’s latest cabinet reshuffle.
His firing by Zuma has been pointed as the one of the major cause for SA economic failure as South Africans believe his economic policies and moves would take the nation’s economy to the promise land.
The new finance minister Gigaba was scheduled to give a briefing on the way forward for the South African economy but cancelled the event to attend a meeting with the African National Congress (ANC).
Nevertheless, experts who seem to agree with Gordhan’s proposed measures to get out of recession, also pointed out that shrinking the size of government’s workforce, continuing on the path of fiscal prudence and stabilising parastatal would also help in awakening the SA economy.
Experts also said that the Finance Minister Malusi Gigaba still has a difficult road to travel but they advised that the journey wouldn’t be that difficult if he adheres to their advice.
“I’d like to see the government shrink, I’d like to see privatisation, I’d like to see more trust placed in the private sector.
“Continuing with what the previous leadership of the National Treasury, their efforts they had put to try to strengthen the governance management of state-owned enterprises.” said one of the experts who spoke to the media.