Join hands to usher in new prosperity
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IN the maelstrom of a global economy characterised by the shock waves of Brexit, the recent US elections and a rising tide of anti-establishment sentiment, it is tempting to wallow in dejection at the prospects of the world economy and the impact on emerging markets.
But as the provincial government of KwaZulu-Natal, working in concert with our social partners, we have always believed in the enduring maxim that behind any cloud of global uncertainly, is a silver lining that portends a confluence of possibilities for the province.
It is against this backdrop that the KwaZulu-Natal Growth Coalition met this week to look at what we can achieve if we marshal our collective energy, in the context of a global economy facing a crisis of confidence.
Conceptualised in 2000 as a forum for engagement between government, the private sector, civil society and the community sector, the Growth Coalition has become a platform where all social partners in the province are able to discuss, frankly and robustly, all the challenges impeding economic growth.
Among other objectives of the coalition is to ensure the eradication of discrimination in enterprises or workplaces. Signatories also needed to embrace black economic empowerment.
This shows the province has not only been endowed with visionary leadership but has always been a pioneer in creating platforms where all social partners can discuss issues constructively.
While it is important to look at the strides that have been made since 2000, the question that was uppermost in our minds as we met this week, was whether we have been able to live up to the founding principles of the Growth Coalition.
While we appreciate the goodwill and the commitment shown by all social partners towards creating a province of our dreams, we believe there is still a lot we need to do to change the ownership patterns of the provincial economy.
We have made it clear the current era in the evolution of the democratic project will be characterised by the agenda for radical economic transformation.
This week, we learnt unemployment in South Africa had risen to a record 27.1 percent high in the third quarter, the highest in 13 years, so we cannot afford to drop our guard.
Our view is that an untransformed economy is one of the biggest threats to our stability and social cohesion.
We have a duty to ensure we create an economy that is inclusive and transformed, but at the same time, able to be globally competitive.
As the provincial government we welcome the proposals on the minimum wage as a means to stem the tide of poverty and inequality. We believe the proposal is just one element in a package of many social and economic reforms needed.
Radical economic transformation, in our view, entails a robust shift to an economy that will benefit all, including the marginalised groups of society such as youth, women, people with disabilities and the poor.
We reject the neo-liberal view economic benefits will eventually trickle down to the poor if we grow the economy. Similarly, we reject the view which defines the role of government in the economy as that of ensuring the free working of markets, sometimes referred to as the enabler role.
We believe government should be the catalyst for transformation through strategic interventions in the economy.
As a developmental state, going forward, we will not be shy to intervene in the economy in a responsible manner for the benefit of all.
In a nutshell, this intervention entails robust government focus on implementation of policies and strategies. We will be promoting issues of localisation (local content), industrialisation, value addition (beneficiation) and infrastructure, skills and entrepreneurship development.
There shall be no compromise in the implementation of broad based black economic empowerment which is at the core of government transformation policy.
Radical economic transformation dictates we must overhaul any system and programme that perpetuates inequalities, unemployment and poverty. Equally, we need to work steadfastly to create a conducive environment for business to thrive. We are at an advanced stage to create the development of a one-stop shop centre to bring relevant government agencies to one location, co-ordinated and streamlined, to provide efficient and transparent services to investors.
It will provide investors with a single place to pick up all documents and approvals statutorily needed to set up an investment project in KwaZulu-Natal. The centre also aims to remove obstacles and overcome bureaucracy faced by investors in setting up and running of businesses.
We are also working hard with relevant national departments to speed up regulatory issues such as those relating to environmental impact assessments (EIA), water use licences etc.
In the second quarter, 100 percent of EIA applications were finalised within the legislated time frame. The information provided on the EIA application forms indicates the capital value of projects authorised during this period was R2.8 billion and more than 5 000 potential jobs created in the construction phase.
One of the issues we emphasised is that the province is not about to descend into a state of lawlessness. We made these remarks in the light of reports there are some members of business forums who are stopping business operations, ostensibly because they want a slice of the pie.
While we believe we need to open opportunities for all of our people to play a role in the economy, there are normal processes that need to be followed, within the ambits of the law, for this to be realised.
We cannot allow anarchy and violence to prevail owing to the fact that as an investment destination we are in competition with other destinations globally. We have no doubt the Growth Coalition remains one of the best-placed platforms for tangible transformation of the province’s economy.
The biggest challenge facing all of us is to translate all the lofty commitments into action. We invite all the people of our province to join hands with us in ushering in a new era of prosperity, equality and hope.
Sihle Zikalala is the acting premier of KwaZulu-Natal. He is also the MEC for the Department of Economic Development, Tourism and Environmental Affairs.