We have to think about the word – inclusivity – he told the audience. “We do not have the right ecosystem to grow more inclusively, and we cannot continue with an economy where a large number of people still sit on the periphery. The mainstream has to become agile enough to respond to the changing circumstances globally and locally, because there are things that need to change radically, such as the employment of young people.”
“We have all grown up in different contexts politically and perceive each other through different lens. We need to confront that, develop dialogue and then develop trust because we have a common national purpose. It is how we will go beyond where we are now.”
As a country, however, this requires doing things differently. “We need to look at the broader picture while still maintaining a narrow focus. Broader requires us to be part of a process of sustainable growth that gives all South Africans the opportunity to take part and be beneficiaries of the economy.” If not, he warns, the country will see negative mobilisation, as experienced in Europe and, to a lesser degree, here in the recent local elections.
He made the appeal for everyone to make a contribution and paint a positive narrative of our country. “As shown, at the beginning of the year we were able to unite different entities around a key issue. Next year will be difficult, and not only for rating purposes.”
“So ask what contribution you can make that will build confidence in the country. Government must do its part, but so must the private sector. It is not so that government sits with the problem and the rest is fine. Everyone needs to be contributors in this environment.”
Investment in the real economy and infrastructure is what will drive job creation and give young people hope, he added. “Youth engagement has to happen in conjunction with the private sector, which has to contribute to larger problem of employment. Without young trained people, our so-called demographic advantage is not an advantage.”
While the minister stated that South Africa will not go into a recession, he said the focus of the next two months will be on the ratings agencies and avoiding a downgrade. “The rating agencies will be back in a few days. They will ask us to show the progress we have made in the areas we were working on in March. They will ask for results.”
Reaffirming his commitment to South Africans and investors to retain and sustain fiscal revenue, to protect the services that are offered as part of the country’s social wage and to continue to build confidence between labour and business, he reminded the audience that South Africa still has a lot to offer. “The country has small green shoots in parts of the economy, and if we nurture them than we will be back to 2-3% growth in a few years.”
