Of radical economic transformation
remains largely an exporter of primary products.
Rob Davies, the trade and industry minister, has elaborated on the form and key elements of radical economic transformation. He argues that, first, it must entail radical transformation of production relations, and, second, it must become less conflictual, characterised by more equitable benefitsharing and by less inequality. Lastly, it must place “job creation at the heart of work programmes and promoting a more inclusive job-rich pattern of growth”.
Citing the KPMG publication, Africa Arisen: The Blue-Sky Continent 2014, Davies said Africa produces and exports $6-billion worth of coffee. But that coffee is processed, packaged and branded elsewhere and is sold for $100-billion. A staggering $94-billion is earned outside of the borders of Africa on one its products. The value chain and valueadded part of the production takes place outside of our continent. In other words, money that could have been earned in Africa had we industrialised is also part of the export.
This speaks to the heart of Zuma’s call for South Africa to move up the value chain and to embark on the beneficiation of its products, be it in mining or agriculture. Already, the mineral beneficiation action plan has been developed as part of the industrial policy action plan.
In addition to spelling out what radical economic transformation entails, the president used the address to provide a report on government’s performance in the past two years of implementing the ninepoint plan.
In 2014, Zuma unveiled a shortand medium-term plan to resolve electricity demand. The plan involved “improved maintenance of Eskom’s power stations, enhancing the electricity generation capacity and managing the electricity demand. The long-term plan involves finalising our long-term energy security master plan.”
As the result of the successful execution of the Eskom’s build and maintenance programmes, loadshedding is now a thing of the past. But, most importantly, Eskom has connected an additional seven million household to the grid. And work is continuing to ensure energy security in the future.
As part of investing in economic infrastructure, Zuma promised that the government would embark on several infrastructure projects aimed at changing the living conditions of our people and boost economic growth.
On this score, the country’s investment in the mega-science project, the Square Kilometre Array telescope, is bearing fruit. The implementation of technology localisation has resulted in R2-billion of the project being constructed with 75% of local content.
The South African National Roads Agency has earmarked R4.5-billion to be spent on upgrading of the Moloto road.
These are some of the infrastructure projects undertaken by government with the view of reigniting the economy while contributing to the socioeconomic development of country.
The infrastructure project also assists in the diversification of the economy through the creation of artisan and maintenance jobs. An estimated two million work opportunities benefiting mainly the youth were created in the past two years.
Going forward, the president was forthright on the role of the state. He promised that the government “will utilise to the maximum the strategic levers that are available to the state. This includes legislation, regulations, licensing, budget and procurement as well as broad-based black economic empowerment charters to influence the behaviour of the private sector and drive transformation.”
Indeed, the government’s commitment could not have been louder.