Challenging economic environment an obstacle to implementing NDP

South Africa requires consistent investment of between 20% and 25% of the GDP to achieve the goals of the National Development Plan on growth and employment, said Jeff Radebe, minister in the presidency for the department of planning monitoring and evaluation. 

High unemployment levels and continued declines in investor confidence have been flagged as major challenges to achieving the goals of the NDP.

Speaking at the final Progressive Business Forum breakfast on Wednesday morning, Radebe said the total investment into South Africa is down from 23.5% of GDP in 2008 to 20% currently.

This year South Africa was lifted out of a technical recession after the economy grew by 2.5% in the second quarter followed by further 2% growth in the third quarter.

However, Radebe said the economic recovery in the past two consecutive quarters is far from the optimal level of growth needed to reverse the increasing levels of poverty and unemployment.

“The economic environment remains challenging,” said Radebe.

“As an emerging economy we have not increased the participation of small and medium businesses in the mainstream of economic activity,” said Radebe. “We must therefore work collectively in expanding the procurement from local suppliers especially black industrialists so that we can counter the economic slowdown and promote job creation and deepen industrialisation,” said Radebe.

In 2016, purchases of goods by government departments totalled around 3% of the GDP.

Radebe’s department has been tasked with assessing the purchases of capital and consumable goods and services by state departments and agencies, to determine the level of local procurement versus imports.

The assessment will include recommendations on promoting local procurement across the state.

Radebe said government had already committed to reserve 30% of their procurement projects for small and medium businesses as well as dealing with legislative barriers and reducing the red tape at all levels of government that adversely affect small enterprises.

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Tebogo Tshwane
Tebogo Tshwane

Tebogo Tshwane is an Adamela Trust financial journalism trainee at the Mail & Guardian. She was previously a general news intern at Eyewitness News and a current affairs show presenter at the Voice of Wits FM. Tshwane is passionate about socioeconomic issues and understanding how macroeconomic activities affect ordinary people. She holds a journalism honours degree from Wits University. 

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

St Lucia Lake fisher community say they are not ‘poachers’

KwaNibela residents rely on the fish and reeds they harvest within the protected iSimangaliso Wetland Park. But authorities consider this poaching, threatening the community’s lives and livelihoods.

Seismic surveys on West Coast pose threat to small-scale fishers’...

They are worried about the effect of blasting on the snoek fishery, which is the basis of their income

UK PM Johnson fights back after defection

Wednesday's defection of Conservative Christian Wakeford to Labour served as a reminder of the high stakes at play, with the opposition party surging in opinion polls.

ConCourt clarifies act for asylum seekers

The apex court has reversed amendments to the act that made it difficult for refugees to apply for asylum while making it easy for Home Affairs officials to unjustly detain and deport them.
Advertising

press releases

Loading latest Press Releases…
×