RADICAL ECONOMIC TRANSFORMATION IS KEY FOR ECONOMIC GROWTH, MINISTER DAVIES

RADICAL ECONOMIC TRANSFORMATION IS KEY FOR ECONOMIC GROWTH, MINISTER DAVIES

 By BRIAN KAJENGO

The Minister of Trade and Industry, Dr Rob Davies says Radical Economic Transformation in South Africa must mean radical transformation on a number of levels such as productive structures of the economy.

“Radical Economic Transformation must mean radical transformation of production relations; less conflict, characterised by more equitable benefit-sharing and by less inequality. It must mean placing job creation at the heart of work programmes and promoting a more inclusive job-rich pattern of growth,” he said.

Minister Davies added that only radical economic change that has these characteristics will be capable of pushing back the triple challenges of unemployment, poverty and inequality.

“Nothing less will make the grade. If we want 5% economic growth, we have to bring about radical change at all of the levels. Our vision and our broad directive compass being the National Development Plan. But within that, we recognise the New Growth Path, the infrastructure programme and the Industrial Policy Action Plan as key components and drivers of taking us where we want to go,” he stated.

Minister Davies highlighted that beneficiation and localisation will add value in the economy and contribute towards the country achieving 5% economic growth.

“Government will use Special Economic Zones (SEZs) to drive platinum beneficiation and there will be two SEZs that will be based on the beneficiation of platinum. These would do jewellery, catalytic converters and, very excitingly and very importantly, fuel-cell technology around small power stations. Partners and potential foreign investors identified already. They need reliable, available quantities of platinum at a sufficiently attractive discount price to support that activity. That's where beneficiation comes in.,” indicated Minister Davies.

According to Minister Davies, government will reconvene the Inter-Departmental Task Team (IDTT) on Iron Ore and Steel to exhilarate mineral beneficiation.

“We were stuck in the last five years on the issue of Iron Ore and Steel because of the court cases. Those court cases have run their course, and we are now going to reconvene the IDTT with the intention of ensuring that a proportion of the iron ore that produced in South Africa made available at a discounted price to support steel manufacturers who are prepared to price that steel in the bottom quartile of world prices

Minister Davies alluded that the Mineral Beneficiation Action Plan identified as a distinct piece of work; and integrated into the Industrial Policy Action Plan. He reiterated that South Africa is on a journey where radical transformations are absolutely critical and essential.