‘Inclusive growth is key’

CHANGE PATTERNS OF OWNERSHIP ‘It’s unfortunate the expropriation without compensation issue has come to dominate the land debate because it tends to oversimplify a very complex issue.’

Tellingly, Konrad Reuss, MD for sub-Saharan Africa for S&P Global Ratings, agreed. “One lesson many of us have learnt was that when we had much higher growth rates in 2000 to 2005, it wasn’t a very inclusive growth. If we were to get back to the growth path of 2% or 3% plus, it has to be more inclusive, more just and more equal.”

Government’s challenge is providing clarity on how this will happen.

UDM leader Bantu Holomisa argued the only way to establish a sustainable path for the economy is through an “Economic Codesa”. Opposition parties are already in discussions around what this would look like, and President Cyril Ramaphosa’s desire to establish a number of summits to address key issues may support this idea.

“We have to come up with some kind of consensus on what kind of macroeconomic policy we need,” Holomisa said, adding that the role of the state and that of the private sector must be outlined.

A most important issue to be resolved is SA’s uneven land ownership patterns. The ANC has adopted a policy of expropriation without compensation, but that’s inherently problematic. Who will the land be taken from, who will it be given to, and what will be done to ensure it’s productive?

It’s unfortunate that the question of expropriation without compensation has come to dominate the land debate, because it tends to over-simplify a very complex issue. Resolving it is something all opposition parties actually agree is essential.

“Land is absolutely critical. We have to deal with it. To suggest that we now have to talk about whether we should or shouldn’t, there’s no time for that,” said DA MP Alf Lees, adding that the constitution always allowed for the land issue to be dealt with. However, it has never been properly used.

Holomisa said an “Economic Codesa” would allow for all points of view to be properly aired.