African National Congress (ANC) recently released national policy documents which contain solutions needed to get South Africa out of junk status. However the question to ask is whether there is a political will to implement the policy.
The solutions include:
- Increasing the investment by the private and public sectors form current levels of around 19% of GDP to 30% of GDP. Key to this is policy certainty.
- Concerted efforts required at eliminating policy uncertainties and unwarranted regulatory hurdles.
- Conducting an audit of the policy and regulatory constraints to investment and set a clear timeframe for addressing them, linked to Ministers’ performance contracts.
- Creating confidence in the economy through credible programmes of employment creation and racial transformation, which enhance long-run stability.
- Good governance of state owned enterprises.
- Maintaining international norms and standard with regard to the regulation of the financial sector and other sectors.
- Strengthening social justice and conditions for the poor and working class.
- Building confidence through the improvement in the quality of public education and health services, through reliable and affordable public transport services, through the knowledge that the private sector is regulated in such a manner so as to avoid unfair competition, price-fixing and unfair labour practices, and through the knowledge that systems are in place to expose corrupt practices and prevent corruption from taking root.
- Improving integration into the African economy. Practically, this means taking steps to enlarge the free trade areas (FTAs) existing in the Southern Africa Development Community and other regional economic communities into larger more expansive FTAs.
- Growth-enhancing elements, such as, reduced red-tape, increased investor confidence, the limiting of monopolistic practices and structures and policy certainty in key areas, such as, mining and infrastructure expansion, should be regarded as necessary components of South Africa’s overall transformation programme.
- See full article here: http://www.cnbcafrica.com/trending/sa-downgrade/2017/04/10/anc-policy/