ANA
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1 minute read
20 Feb 2017
9:49 pm

Remove barriers restricting broader economic participation, Gordhan told

ANA

Fedusa urged Gordhan to remove structural impediments constraining the broader participation of black companies and communities in the economy.

File picture: Former finance minister, Pravin Gordhan. Picture: Neil McCartney

The Federation of Unions of South Africa (Fedusa) on Monday said it expected Finance Minister Pravin Gordhan to announce measures to remove structural barriers preventing the meaningful participation of black people in the economy.

“After more than 20 years of democracy, Fedusa believes that economic opportunities in our country should not continue be enjoyed by a few privileged families and individuals, but rather that it is time that government moves with speed to remove structural impediments that constrain the broader participation of black companies and communities in the economy,” Fedusa general secretary Dennis George said in a statement.

“Specifically, the business models of most, even not all lucrative food and retail fuel franchises in South Africa today are highly monopolistic and have put up stiff and rigid barriers for entry by black companies and individuals in the form of prohibitive unencumbered cash requirements, demands of track records spanning many years, in addition to heavy shopping mall rentals of more than R30,000 a month.”

Fedusa’s budget wishlist included Gordhan considering lowering the tax burden for the manufacturing sector, given its potential for job creation in the country.

“Lower marginal tax rates for the mining and construction sectors make private investment in these more remunerative despite much lower growth and job creation returns for the economy at large. Nonetheless, by reducing the tax burden of firms, investment tax incentives have encouraged additional investment in agriculture, construction, manufacturing, trade, and other services.”

– African News Agency

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