http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.18Change: -0.45
R/$ = 11.58Change: -0.15
Au 1294.60 $/ozChange: 15.79
Pt 1265.00 $/ozChange: 16.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 11, 2008

Mantashe stresses continuity and change as ratings firms turn bearish on SA

Back
 
Africa|Industrial|Projects|Standard & Poor's|Africa|South Africa|Christmas|African National Congress (ANC)|ANC|Congress Of The People|Gwede Mantashe|Lesetja Kganyago|Mbhazima Shilowa|Wendy Luhabe
Africa|Industrial|Projects||Africa||||
africa-company|industrial|projects|standard-poors|africa|south-africa|christmas|african-national-congress-anc|anc|congress-of-the-people|gwede-mantashe|lesetja-kganyago|mbhazima-shilowa|wendy-luhabe
© Reuse this



The new leadership of the African National Congress (ANC) was not proposing any “major” changes to South Africa’s economic policies, but secretary-general Gwede Mantashe said on Tuesday that it would be untrue to assert that there would be no policy change.

Speaking at an event organised by the National Business Initiative in Sandton, he said the dynamic would be one of “continuity and change”, should the ANC prevail as anticipated in the 2009 election.

Sharing a podium with Wendy Luhabe, the wife of Mbhazima Shilowa, who has thrown in his lot with Mosiuoa Lokota’s ANC breakaway party, provisionally known as the Congress of the People, Mantashe explained that this would involve the retention policies that have worked, while changing those that had not.

His comments came as Standard & Poor's followed Fitch in cutting its outlook on South Africa's BBB+ credit rating to “negative” from “stable” on concern about the effect of slower world economic growth on the South African economy and its currency.

In its earlier commentary, Fitch raised concern that “in the event of a recession, the political commitment to the current economic policy framework could be tested”.

This commentary was rebuffed by South Africa’s Treasury DG Lesetja Kganyago, who told Business Day that he did not think that the rating agency’s assessment was "well-grounded".

Mantashe, who is seen as a key figure in the so-called post-Polokwane leadership, argued that any changes that could arise would be “a question of emphasis”, adding that the focus would be on the creation and retention of decent work.

The key shift could be towards a more assertive and active industrial policy, which Mantashe argued would seek to prioritise high-potential or underdeveloped sectors for direct State support.

He stressed, though, that this policy would not be based on import substitution, but on providing the incentives necessary to support the growth and development of “competitive” businesses.

However, he also strongly backed the controversial notion of picking winners, dismissing generalised industrial incentives as “Father Christmas giveaways”.

This is likely to raise some concern among those policymakers who believe governments should avoid targeting industries for particular support, particularly given the propensity for cronyism and for the creation of so-called “national champions”, whose protection from competition does not always yield commensurate social and economic returns.

Mantashe also outlined a more substantial role for South Africa’s development finance institution’s (DFIs), such as the Industrial Development Corporation and the Development Bank of Southern Africa, which he said were currently constrained by the ongoing demand for financial self-sufficiency.

In fact, he indicated that there could be instances where the DFIs should be allowed to lean on the fiscus in order to deliver developmental projects that would not be viable under their current restraints.

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 7 hours ago Western Cape entrepreneurs had just four days before applications closed to secure cash injections of at least R10-million by pitching their business ideas to major funding bodies at the Western Cape Funding Fair – the province’s own “Dragon’s Den”. The deadline for...
INSTALLATION The system could also pinpoint an aircraft to within two nautical miles
National carrier South African Airways (SAA) is deploying a locally developed satellite payment system, which is also able to track the aircraft anywhere in the world, across its fleet of airliners. The system, developed by satellite authentication company SatAuth,...
Financial services provider Stanlib aims to channel the bulk of a R1.2-billion infrastructure equity fund into some of the infrastructure projects under way in South Africa, with a particular focus on renewable energy. Stanlib on Tuesday said the fund, which would...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks