State Of The Economy: Guptas Call For Urgent Economic Transformation

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The Guptas has refused to shoulder the blame for the current political and economic State of South Africa despite fingers pointing at it for playing a role in the failed state.

With #GuptaLeaks further exposing the family’s influence in various state own enterprises and in government, the Guptas has come to say that there is still an economic apartheid in the country.

The family said its Oakbay investment and any other of its firm has never been a tool to push forward any “White Monopoly Capital”  agenda “The allegations against us that Bell Pottinger used ‘white monopoly capital’, and created Twitter bots on behalf of Oakbay, have nothing to do with Oakbay. Oakbay did not instruct Bell Pottinger to do anything of the kind alleged,” Naidoo said.

“Uncomfortable truth though it may be, there is an economic apartheid in South Africa. Our philosophy is that disruptive company and more competition is what South Africa needs to be transformed,” he stated while pointing out that the Gupta family’s stance on racial inequality in South Africa.

 Read Also: State Of The Economy: SA’s Junk Status Could Last For At Least 6 Years

Talking about South Africa’s economy and how far Zuma’s government is going to ensure it regains strength, the Organisation for Economic Cooperation and Development (OECD) Economic Survey showed on Monday that the needs bold structural reforms to boost the ailing economy as there is limited room for monetary and fiscal stimulus.

Like the Guptas rightly admitted, the OECD believes that reviving economic growth is crucial to increase well-being, job creation and inclusivity. But, the survey revealed that the country needs more than just Finance Minister Malusi Gigaba’s 14 points economic agenda to stimulate growth.



Critics also said the plan, which included the possible sale of assets and partial privatisation of state-owned firms, was not enough to restore business confidence and stimulating private sector investment. Rating agencies have also warned of further credit rating downgrades.Naidoo even suggested what SA needs to become transformed.

Gupta’s Naido suggested that what South Africa urgently need was a total transformation.

Meanwhile, the South African government is looking at selling off some of the state own enterprises to settle a debt owed by the airline to Standard Chartered Plc.

The finance minister Gigaba noted this in a statement to Baleka Mbete, speaker of the National Assembly.

Read Also: #GuptaLeak: This Is How Gupta Family Captured The Presidency

According to Business Day newspaper, a 39% stake in phone company Telkom SA SOC Ltd was among the assets being considered for a disposal to save the SAA. This proposal, if successful,  would echo a 2015 decision to sell a R28,7 billion stake in wireless carrier Vodacom Group Ltd to raise funds for state utility Eskom Holdings SOC Ltd, which was struggling financially amid a nationwide electricity shortage.

South Africa’s economic downturn, the downgrading of the country’s foreign-currency debt and a “rapid deterioration” of SAA’s cash flow triggered the need for “urgent action” regarding the airline, Gigaba said.

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