The FF Plus agrees with the assertion made by the director-general of the Treasury, Mr Dondo Mogojane, that South Africa is not yet a failed state, but that it will soon end up being one if state capture is not brought to an end at once.
Economic growth is hampered even further by the unnecessary fragmenting of departments and it would only be to the country’s benefit if departments like trade and industry, small business development and even finance and energy were combined in order to promote cohesion.
At present, too many entities lead to unnecessary red tape and administrative bottlenecks, which the country’s struggling economy simply cannot afford. South Africa’s economy is in trouble and drastic and rational steps will have to be taken to salvage the situation.
Mr Mogojane’s perspective on state capture and the possibility of South Africa becoming a failed state is honest and brave. It is a good place to work from toward economic recovery.
Given this, the minister and his department ought to pay attention to the following matters:
• Proven and feasible policies from European countries, America, South Korea and Singapore must be implemented. Enough blood has been spilt in the past to teach us that the free market system is the best way to eradicate poverty, in contrast to the policy of redistribution that just leaves everyone equally poor.
• The Industrial Development Corporation (IDC) may not invest in companies that are implicated in state capture for the sake of Black Economic Empowerment (BEE). Examples include irregularities with Capitec shares and the financing of the Shiva uranium mine owned by the Guptas.
• Concerning the amendments to the Competition Act, the minister must provide clarity to the private sector on which industries and companies will be earmarked to split into smaller entities. The business sector needs certainty more than anything else and the sensible application of the new powers is of the utmost importance to protect the economy.
• Most importantly, the minister and his department must explain to the public the economic impact of expropriation without compensation. It has already damaged the country’s image internationally and it will scare off potential investors. Economic development simply will not take place if there is uncertainty regarding property rights.
South Africa’s economic situation is such that our country does not need ordinary political leaders, but political entrepreneurs who understand how to stimulate economic growth.
Contact numbers: 082 391 3117 / 065 801 7216
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