Sep 11, 2008
SA's macroeconomic frameworks to remain in place - PhosaBack
© Reuse this The African National Congress's (ANC's) treasurer-general, Mathews Phosa, insisted on Thursday that South Africa's macroeconomic frameworks would remain in place in what would be a "seamless" economic-policy transition from Thabo Mbeki's administration to the one that was expected to be led by Jacob Zuma after next year's election.
Phosa, who is one of the so-called ‘top-six' in the post-Polokwane ANC leadership structures, was speaking on the same day as South Africa's leading financial daily, the Business Day, was running a front-page story suggesting that the SACP was proposing an overhaul of the role of the National Treasury and the South African Reserve Bank.
Both SACP and Cosatu were known to be unhappy with the tight fiscal and monetary policies overseen by Finance Minister Trevor Manuel and Reserve Bank governor Tito Mboweni, having continuously opposed the retention of both the Budget surplus and the policy of inflation targeting.
Phosa said that, while the ANC had respect for the views held by other sectors within the alliance, the ANC was not "communist" and was prepared to make the necessary compromises, as it had in 1994 under former President Nelson Mandela's leadership, in the interest of South Africa and continued economic growth.
"We made those compromises very consciously to ensure that we made the macroeconomic framework what it is," Phosa added, noting that the ANC had been criticised along the way, even to the point of being called a "sell-out".
Making continual reference to the spirit of "compromise", "balance" and "nation building" that epitomised the Mandela era, Phosa stressed that "we (the ANC) have our views too, and we have got the business of running that country [to consider]", adding that "Cosatu is Cosatu, and the ANC is the ANC."
But he also stressed that it was not hostile to the views held by either the SACP or Cosatu and would continue to talk with its partners to "convince one another".
"At the moment, as to where we stand, there should be no uncertainty. The ANC policy is on the record," Phosa stressed. But he refused to be drawn directly into the inflation-targeting debate, quipping that he was "not qualified" to do so.
An economics summit is scheduled for October, where the ANC and its allies were expected to enter a robust debate on the future trajectory of South Africa's post-Mbeki economic policies.
Edited by: Terence Creamer© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...