BRYAN PEARSON, Cape Town | Friday 3.00pm.
PRESIDENT Thabo Mbeki on Friday announced measures to increase the competitiveness of the South African economy, boost job creation and promote foreign investment in the country.
Addressing parliament in his maiden state-of-the-nation address, Mbeki also committed his government to continuing the liberal free-market macro-economic policies of his predecessor, Nelson Mandela, contained in the Growth, Employment and Redistribution (GEAR) programme. “At the same time,” he added, however, “we will actively address any remaining impediments to investment and job creation.
“Where the structural changes already achieved allow us to evolve new policies, we will do so.”
He said that an “International Investment Council” would be established shortly “to help us ensure that South Africa is an attractive destination for foreign investment.”
The council would comprise “some of the leading players in the global economy” who would work with Mbeki himself and with South African business and trade union leaders.
But, he added, interest rates remained too high — prime rates are currently at 18% — impacting on investment, growth and the country’s competitiveness.
“The (central) Reserve Bank and the Ministry of Finance will continue to address this matter carefully,” Mbeki said.
Job creation would remain a priority of government, the new president said, as would the development of small, medium and micro-enterprises.
Issues such as skills development, the casualisation of labour, illegal foreign workers and workers whose rights are not protected would also be addressed.
Mbeki said improved economic figures released on Monday, which showed the economy grew by 0.4% — confounding economists who had expected a contraction in Gross Domestic Product — provided scope for government to increase its capital expenditure.
The government, he added, remained “preoccupied” with the issue of the falling gold price and its impact on gold mining, employment and export earnings, both in South Africa and the rest of the continent.
Government would continue, he added, “to maintain contact with all relevant players, both domestically and throughout the world, to minimise the inevitable adverse effect on our country, people and our continent.”
Mbeki said Trade and Industry Minister Alec Erwin would make recommendations within the next 14 days as to who should win the contract to run a national lottery. — AFP