Action over stalled plans
WIDESPREAD policy uncertainty, corruption and mismanagement of state resources over the past decade have resulted in South Africa losing R1 trillion in potential investments – and have contributed towards a slowdown in gross domestic product (GDP) growth.
This is the gloomy assessment of the Bureau for Economic Research (BER) on the country’s economic underperformance during the decade of rule by former president Jacob Zuma.
In its report titled Ten years after the Lehman collapse: South Africa’s post-crisis performance in perspective, BER economist Harri Kemp said South Africa had underperformed in its GDP growth in relation to other emerging markets and average global growth.
“Based on relatively simple assumptions, it is determined that domestic real GDP could have been between 10% and 30% higher by 2017,” Kemp said.
“Under the assumption that the domestic growth trajectory matched that of our emerging market peers, the real GDP would have been 29.3% (R915 billion) higher.” Kemp said the period between 2010 and last year amounted to “lost years” for South Africa. He said there was an overlap between political uncertainty and the Zuma administration, with factors such as the delay of the implementation of the mining charter, the controversial visa regulations and the unfounded rumours of a rogue unit at Sars contributing towards poor economic performance.
Economist Dawie Roodt that said when Zuma took over the reins as president, the global economic crisis presented him and his “destructive forces” with the perfect opportunity to “get their claws into” SOEs, because at the time everyone’s attention was on the financial crisis.
“The financial crisis started the trouble for South Africa, but without a doubt it was exacerbated by the whole Zuma cabal,” he said.
“The destruction it has caused the economy is absolutely horrible.” THE Mining Forum of South Africa (MFSA) said yesterday that it was taking Mineral Resources Minister Gwede Mantashe to court, seeking to compel him to act against platinum producer Lonmin Plc for non-compliance with the commitments made in its social labour plans.
The matter has been set down for hearing on October 26 by the High Court of Mafikeng in the North West.
MFSA is a lobby group seeking to be an agent of transformation in the mining industry of South Africa through ensuring that mining entities fully implement the Mining Charter, Mineral Petroleum Resources Development Act and their social labour plans.
This comes after August 2017 audits on Lonmin by the Department of Mineral Resources found that Lonmin failed to comply with its obligations committed in its 2014-18 social labour plans in terms of housing, local economic development, human resource development, employment equity and procurement.
In November last year, the forum called for the suspension of mining activities at Lonmin with immediate effect after the mining house failed to build the 5 500 houses for employees it had promised to build in 2006.
Terance Kgokolo, the MFSA secretary-general, said Lonmin had neither complied with nor fulfilled its commitments and the minister had failed to take reasonable steps to enforce the social contract concluded between Lonmin and the people of South Africa. | African News Agency (ANA)