ANC still has ‘no plan’ for stagnant economy

A leading market economist is suggesting that for the ANC to achieve sustainable development, it must avoid repeating past positions and recommendations and must forge alliances with social partners and academics to attain a shared growth economy.

In a critical advisory opinion, macroeconomist Miyelani Mkhabela, who is chief economist and chief executive at Antwisa Transaction Advisory, said sustainable industrial development would not be achieved from repeating past propositions and recommendations.

“The ANC policy conference has no practical clear strategy for the manufacturing and mining industry,” he said.

“Those are key sectors to lead the economic development and turnaround strategy for South Africa.

“When there is no clear microeconomics strategy, macroeconomics will not be integrated. The sixth policy conference has not layered an expected path towards its 55th national conference.

“The most visible challenge facing the ANC is leadership capabilities to design policies and implementing them.”

The party must engage stakeholders, including academics and social partners.

The party had acknowledged there had been less cooperation and alliances among these stakeholders, despite this need to transition into a shared growth economy.

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This view came a day after the ANC ended its sixth national policy conference, where it agreed on a number of positions to turn the tide against a stagnant economy, joblessness, crime and corruption and hurdles to sustainable social transformation.

However the party was criticised by experts for not having had a plan since 1994.

Historically, Mkhabela said, ANC conferences had agreed that unemployment, poverty, inequality and other livelihood crises must be resolved to create a better life for people. But there was no long-term plan or five-year term plan.

“There are no quick fix measures to accelerate inclusive economic development and growth and create employment. We need a competent group of leaders who understand the challenges.”

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On the ANC’s position on Eskom and the conference’s adoption of party president Cyril Ramaphosa’s rescue plan for the utility, the economist said the policy conference had failed to come up with an energy security plan or recommend strategic solutions to improve the performance of Eskom’s existing power stations and maintenance strategy.

“The expanded infrastructure development needs massive investment and with the challenges faced by the global economy, we will continue to witness fewer investments in the next five years,” Mkhabela said.

Asked what was the solution in the light of global economic dynamics and constrained local economy, he said the key was to increase food security by ensuring all households had adequate food.

– ericn@citizen.co.za

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