Radical economic transformation simply means enforcing economic inclusion of previously disadvantaged people.
Government says it has identified key sectors of the economy where disadvantaged people can play a meaningful role. This includes agriculture, manufacturing, mining, energy especially gas and small medium enterprises.
The ANC will be meeting in July this year to discuss wether the inclusion of more blacks into the economy can be achieved.
This week President Jacob Zuma spelled out what government meant by radical economic transformation.
“Let us not keep asking what do we mean by this, if you want to debate let us debate meaningfully. We have been presenting this in different platforms partly because its absolutely important that the economy of the country must be shared amongst all citizens of this country where there is extreme poverty and extreme richness.”
But the announcements not only from governments but other quarters of the ANC has left more questions than answers.
How would this be implemented? Would government pass enforceable legislations and laws that will guarantee black economic ownership and control?
Head of the ANC’s Economic Transformation Committee, Enoch Godongwana says that while the outline of the emerging policy of radical socio-economic transformation was in place, the details as well as the fiscal implications of the policy will be clarified at the ruling party’s looming policy conference in July.
“The economic discussion paper what that means is that everybody including the public are entitled to comment on the document. We will put all the comments together and at conference we will have to make a decision on those comments. Even within the ANC there is a number of robust debate on a number of areas. Miming has been in the centre when the youth league proposed nationalisation. The financial sector is likely to be at the centre of the debate.”
Meanwhile, this week the JSE took a R150 billion knock and the rand fluctuated against major currencies- the ANC moved swiftly to quell concern and assured investors and the nation that they would maintain a policy of fiscal prudence.
At the policy conference in July it may emerge that the policy of radical economic transformation requires an expansion of the fiscal spending. This means government would spend more not less.
In the current tough economic climate, treasury has argued that there is no space to spend.
The details of what radical economic policy entails in terms of monetary and fiscal policy are yet to emerge mid -year.
Godongwana adds: “Our approach to radical economic transformation is not a rhetoric but must be informed by the content of that transformation I don’t want to be talking about that but transformation is going to be informed by the content of what we are going to share.”
