ANC to step economic transformation

THE fear of losing the 2019 election has pushed the ANC to introduce time-lines of when it will implement policies that will see black people taking control of the economy.

These plans were unveiled last night by President Jacob Zuma during his State of the Nation Address (Sona). The decision to implement these policies was taken at the party’s national executive committee lekgotla where it is understood Zuma and other leaders complained that National Treasury was not prioritising developmental projects.

The ANC got a wake-up call after the governing party performed dismally in last August’s local government elections where it lost key metros to opposition parties.

The decision to implement these policies is seen as the governing party’s response to the EFF which garnered more than a million votes with a manifesto that promised radical economic transformation.

Zuma said his government will focus on transforming the economy, including property relations, land and agriculture, mining and the financial sector.

“The state will play a role in the economy to drive transformation. In this regard, government will utilise the strategic levers that are available. These include 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,” said Zuma.

He explained that the state was spending R5-billion purchasing goods and services, and had an infrastructure budget of R900-billion. He said his government had introduced new laws that would make it compulsory for big contractors to subcontract 30% of business to black-owned enterprises.

“We mean fundamental change in the structure, systems, institutions and patterns of ownership, management and control of the economy in favour of all South Africans, especially the poor, the majority of whom are African and female, as defined by the governing party which makes policy for the democratic government.”

Zuma wants to see what he called the skewed nature of ownership and leadership patterns of companies being corrected.

“There can be no sustainability in any economy if the majority is excluded. In my discussions with business, they accepted these transformation imperatives.

“We are now stepping up our actions to deal with the other challenge, namely economic concentration, where a small grouping controls most of a market,” he said.

Zuma announced that the Competition Act will be amended to address the need to have a more inclusive economy and to de-concentrate the high levels of ownership and control.

He further said government would also focus on the property industry which was worth R7-trillion and few blacks were part of.

“However, less than five percent of the sector is owned or managed by black people and Africans in particular. A draft Property Practitioners Bill will be published by the Department of Human Settlements for public comment with the purpose of establishing a more inclusive, representative sector, towards radical economic transformation,” said Zuma.

Zuma also announced that the SA National Road Agency Ltd had embarked on the planning for the R4.5bn upgrade of Moloto road.

The Sona was marred by chaos and turned into a disgrace and embarrassment.

“Zuma said the State will play a critical role in the economy to drive transformation