Chairperson, we know that we need a more globally competitive economy to improve our market position as a catalyst for growing our domestic economic activities, including promoting local entrepreneurship, especially small, medium and micro enterprises, SMMEs, and improving our attractiveness as a preferred foreign investment destination, especially for foreign direct investments, FDIs.
For our economy to grow and develop exponentially and to ensure that we will have more South Africans earning salaries and wages, and thus paying taxes, we need to strive towards creating more real and sustainable jobs in a competitive environment.
However, to create five million jobs, as the Minister has indicated, by 2020, we need a 7% growth in GDP per year, which is unlikely if we look at the Medium-Term Budget Policy Statement, just delivered last week. More specific actions are needed from the Minister in that regard.
Government, however, has a very important role to play in developing such an environment; not only to create the required jobs, but to also encourage more businesses to enter the global market. This in turn will lead to competition between suppliers of services and products, which will improve consumer choices and result in more value for money.
Competition in every sector of our economy, especially those identified to drive our economic recovery, should be encouraged and supported. Unfair competitive activities and practices, however, like price collusion and black economic empowerment, BEE, fronting, must be opposed fiercely. The Competition Commission is best positioned to ensure that such a competitive environment is maintained.
The settlement agreement by Pioneer Foods, as announced by the Minister, must surely be complimented. I think that is a great step by Pioneer Foods, and I am sure that they will again return to their previous position and enormously add to the economic growth potential of South Africa.
The competition authorities must consider various actions in support of competition. Allow mergers and acquisitions which lead to better choices and value for money for consumers. In this regard, the possible merger between Walmart and Massmart should be encouraged. This is an example of a foreign direct investment transaction with economic development benefits that our economy needs.
The authorities must also ensure that provisions of the Broad-Based Black Economic Empowerment, Act are not misused with fronting as a practice that benefits a few elite tenderpreneurs with mostly excellent political and governmental connections. Any possibility of such transgressions should be investigated and punitive action taken.
In this regard, the widely publicised transaction between ArcelorMittal and Imperial Crown Trading, ICT, must be investigated. The perception from reports and submissions is that this transaction is certainly not intended to be beneficial to a broad base, but rather to enrich a few of the elite with excellent political connections.
It also constitutes fronting as per the BBBEE Act, which in itself is a punitive transgression. The impression is also that ICT has no knowledge of or track record in iron ore mining activities and has no operational mining assets. This certainly adds no value.
A strong message should be sent out by fighting illegal fronting activities, especially as this is not only taking away benefits from historically disadvantaged individuals, but it also places the eventual funding burden on the consumers. It should be classified as anticompetitive behaviour if the result is higher prices and not necessarily more choices and better value for money for the consumers.
We need to develop appropriate strategies and competitive economic development plans that will enjoy the full support of government, labour, business and foreign investors. This will contribute not only to optimal employment opportunities, but also to consumer beneficiation opportunities. It will also improve strategic global competitiveness and sustainability, and it will certainly promote an open opportunity society for all. Thank you. [Applause.]