South Africa will not revise its economic growth target of 5.4% per year as set out in the National Development Plan (NDP)‚ but will “go back to the drawing board” to make sure that higher growth is achieved‚ National Planning Commission chairman Jeff Radebe says.
The NDP sets the growth target for the gross domestic product at 5.4% annually by 2030 – a figure that appears to be unattainable‚ given the current perennial downward revisions of SA’s economic growth rate.
The Treasury‚ the Reserve Bank and the World Bank are among the many institutions that have lowered SA’s economic growth projection for this year to 1.5% from levels of about 2%.
Halving unemployment‚ currently at 25.5%‚ to 14% by 2020 and ultimately reducing it to 6% by 2030 were also still the targets‚ Radebe said. The government‚ with the private sector‚ needed to design a labour-intensive method of infrastructure development to employ more people‚ he said.
“For now it is still our target even though our economic growth has not reached the levels that we require. It means that we need to go back to the drawing board.
“What is it that we need to do more in order for us to be near our targets? Because we need to create those jobs‚” Radebe said.
The new National Planing Commission‚ which was announced by President Jacob Zuma in September‚ will hold a lekgotla this month to continue discussions on how best to execute one of its mandates of advising the government on implementing the NDP.
The economy‚ education‚ and jobs were likely to take priority at the meeting‚ Radebe said.
Radebe refuted allegations that the implementation of the NDP was proceeding at snail’s pace‚ or not at all.
All spheres of government had firmly adopted it within their programmes of action.
However‚ not everyone agrees. Lefika Securities economist Colen Garrow said the NDP as a market-friendly and the most credible economic plan for SA’s economy said one thing‚ but its implementation was an entirely different matter.
Garrow used mining as an example. “The NDP talks of beneficiation‚ as a means to achieving the employment objectives; yet there is a cloud of uncertainty hanging over the entire industry‚ which only government can sort out‚” he said.
“Government needs to be more specific on what its objectives are in this regard‚ and give a time-frame over which they can be achieved.”
The government continues to maintain there is cohesion in its policy‚ although lack of communication between home affairs and the tourism departments led to the tourism sector suffering from the implementation of new visa regulations.
An outcry from tourism industry players that the more stringent visa regulations contributed to lower tourist numbers and income from travellers was the reason the regulations have been made less onerous.
Organisations such as the International Monetary Fund keep reiterating that the only way for SA to achieve higher levels of growth is to reform sectors such as education and labour.
Although the government was trying to implement some reforms‚ labour within the public service‚ particularly in education‚ had been “less welcoming” of some of the reforms‚ Rand Merchant Bank fixed income strategist Carmen Nel said.
SA stays firm on 5.4% growth target
The NDP sets the growth target for the gross domestic product at 5.4% annually by 2030 – a figure that appears to be unattainable‚ given the current perennial downward revisions of SA’s economic growth rate.
The Treasury‚ the Reserve Bank and the World Bank are among the many institutions that have lowered SA’s economic growth projection for this year to 1.5% from levels of about 2%.
Halving unemployment‚ currently at 25.5%‚ to 14% by 2020 and ultimately reducing it to 6% by 2030 were also still the targets‚ Radebe said. The government‚ with the private sector‚ needed to design a labour-intensive method of infrastructure development to employ more people‚ he said.
“For now it is still our target even though our economic growth has not reached the levels that we require. It means that we need to go back to the drawing board.
“What is it that we need to do more in order for us to be near our targets? Because we need to create those jobs‚” Radebe said.
The new National Planing Commission‚ which was announced by President Jacob Zuma in September‚ will hold a lekgotla this month to continue discussions on how best to execute one of its mandates of advising the government on implementing the NDP.
The economy‚ education‚ and jobs were likely to take priority at the meeting‚ Radebe said.
Radebe refuted allegations that the implementation of the NDP was proceeding at snail’s pace‚ or not at all.
All spheres of government had firmly adopted it within their programmes of action.
However‚ not everyone agrees. Lefika Securities economist Colen Garrow said the NDP as a market-friendly and the most credible economic plan for SA’s economy said one thing‚ but its implementation was an entirely different matter.
Garrow used mining as an example. “The NDP talks of beneficiation‚ as a means to achieving the employment objectives; yet there is a cloud of uncertainty hanging over the entire industry‚ which only government can sort out‚” he said.
“Government needs to be more specific on what its objectives are in this regard‚ and give a time-frame over which they can be achieved.”
The government continues to maintain there is cohesion in its policy‚ although lack of communication between home affairs and the tourism departments led to the tourism sector suffering from the implementation of new visa regulations.
An outcry from tourism industry players that the more stringent visa regulations contributed to lower tourist numbers and income from travellers was the reason the regulations have been made less onerous.
Organisations such as the International Monetary Fund keep reiterating that the only way for SA to achieve higher levels of growth is to reform sectors such as education and labour.
Although the government was trying to implement some reforms‚ labour within the public service‚ particularly in education‚ had been “less welcoming” of some of the reforms‚ Rand Merchant Bank fixed income strategist Carmen Nel said.
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