President Thabo Mbeki said the economy has continued to grow “reasonably well” in spite of the tightening of monetary policy during the past year.
Speaking in his budget vote in the National Assembly on Wednesday, the president said: “In the past year, the economy continued to grow reasonably well in spite of the tightening of monetary policy that was necessitated by the sharp rise in inflation that resulted from the temporary weakening of the rand and the slowdown of the global economy.”
Referring to the June Growth and Development Summit — involving business, labour and government — he said: “We are confident that the decisions taken at the summit and other interventions will enable our country to perform even better than it has done, creating the possibility for all of us to respond more effectively to challenges we face together.”
Referring to fiscal management he said this year’s government budgeting cycle would see the formulation of a Medium Term Strategic Framework led by the Presidency with the participation of other departments of government.
This framework “encapsulates the key challenges confronting government in the medium term that need to be taken into account in deciding the budget.”
“Further, it is informed by the global socio-economic and political climate and their possible risks for the country.”
“This will further strengthen the coordinating role played by the Forum of South African directors general, the sector clusters of directors general and the President’s coordinating council that brings together the provincial premiers and the President.”
Further, he reported, the Presidency had formulated a national spatial development perspective on the basis of a study of the country’s social, economic and environment and spatial trends over the past decades.
“The objective is to develop guidelines to ensure that government’s infrastructure investment and development spending programmes have better spatial outcomes than are currently being achieved.”
Mbeki also underscored the positive role played by two major banking groups responding to the challenges facing the youth of the country.
He said: “I would like to thank the ABSA Bank for the enthusiasm and readiness with which it entered into an agreement with the youth concerning its SMME (Small, Medium and Micro Enterprise) Incubator Fund, co-operation with the Umsobomvu Youth Fund on youth economic empowerment programmes and the National Youth Commission on youth learnerships in finance and information and communication technology.”
The bank announced some months before the June Growth and Development Summit that it intended setting up an incubator fund to assist black business with credit management, training and mentorship.
Mbeki also said the First National Bank “has also responded to our call to assist with the skills development of our people by embarking on a learnership programme in line with the National Human Resource Development Strategy”.
He noted that from January 2004, the bank would take on 1 200 matriculants for the purpose of learnerships phased over three years.
“Currently there are 1600 learners who are going through a CIDA City Campus degree programme and given on-the-job training with the help of professionals from the bank and the rest of the private sector.”
“These important financial institutions have set an example in terms of what can and needs to be done. I trust that others within the private sector will follow their excellent example.” – I-Net Bridge