New deputy finance minister David Masondo is ready for uphill battle

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Newsletter| New Deputy Finance Minister David Masondo is well aware that citizens are getting poorer, unemployment is soaring and SA is still one of the most unequal countries in the world. Here are his thoughts on how we can address these challenges

“Addressing our economic challenges requires a focus on policies that will grow the economy by boosting productivity and raising our competitiveness,” he told City Press last week.

He said the solution was to help South African firms integrate better into global and regional value chains and focus on labour-intensive growth. Although public employment programmes could help with job demand, he said, they could not tackle the scale of the challenge that South Africa faces. “Unfortunately, in recent years, many of these critical state-owned enterprises have had their ability to contribute to economic growth severely weakened.”

Working in South Africa’s favour, he said, was the “favourable government debt structure [low share of foreign currency debt], sustained strength of core intuitions such as the judiciary and the SA Reserve Bank, deep local capital markets and a healthy banking sector”. Nationalisation should not affect the Reserve Bank’s independence, he said, adding that, “as a matter of fact, most central banks are nationalised banks”.

 

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Mncim

It sounds all the same as before, 10 point plan, generalised waffle, no real action points. We need to break up Eskom and cut corruption I. Government and all SOEs. Imprison the corrupt. Distance ourselves from socialism. These are the only ways we will return to good health

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