The issue of savings in South Africa was not just an economic question, but also a matter of changing attitudes, said director general of the National Treasury, Lesetja Kganyago, on Tuesday.
“We must ask as South Africans why are we consuming more than we are earning? In a way we need to change our attitudes toward savings. Instead of thinking about the next fancy car, we should think about the next profitable investment we are making. That will enable us to begin mobilising domestic savings,” he pointed out at a JSE/Nedbank Capital seminar.
“The poor are actually incredible savers because they don’t have access to credit and the only way they get anything is through savings. There are two angles to this — we must get foreign savings, but it is also important that we have a national savings drive.”
He stated that the government was leading the national savings effort “from the front” using the budgeted fiscal surplus. He said the fiscal surplus was a “conscious effort” in this regard.
“If you can’t save then government will save on your behalf,” he said.
Kganyago went on to say that there was a lot of untapped opportunity on the African continent that should be exploited.
“Why do foreign investors choose SA? It is best answered by those investors — but it suits me as these investors want to use SA as a base to invest on the continent,” said Kganyago.
“What is important is it must not end here. They must use this as a base to drive into other African countries.”
He said that Africa was fortunate to have a generation of leaders who understood that democracy was good for growth and development.
“These leaders have decided to take charge and provide that leadership.”
“No other continent has a peer review system, but we have subjected ourselves to this where we invite people from outside to review what we are doing. That is unprecedented and as Africans we have to be proud of that and acknowledge Africa is far more stable than it has ever been,” he said.
Kganyago pointed out there were far more democracies in Africa now, and more importantly, leadership that would drive the development of the continent.
He was speaking at a one-day JSE/Nedbank Capital seminar focusing on South Africa as a source of capital within the context of the National Treasury’s bid to make the country a regional hub for Africa. ‒ I-Net Bridge