Hon Deputy Chairperson, hon members, fellow South Africans, the combination of the slow to stagnant growth and the staggering unemployment rate, especially of our youth is of great concern.
Only last week we woke up to the news that government has again sent South Africa into a recession with a gross domestic product, GDP, contracting by a whopping 1,4% in the last quarter of 2019.
The unemployment rate has increased to its highest ever, standing at 29,4% with the youth unemployment rate at 60%. That is unsustainable for future generations. This has seen more and more communities entrenched in poverty and inequality.
It is therefore imperative that government identifies and implement, not only though lip service reforms, but policies that will promote economic transformation to ensure the creation of global creative markets.
This government must abandon the paradigm of state control over our society and economy and stop just blaming state capture as the exclusive factor of the declining economy.
The primary aim of transforming the economic landscape must lead to the creation of open opportunities to enable all to live a productive, prosperous and dignified life, which the majority of South Africans have not experienced since the dawn of democracy.
South Africa has seen deterioration in investor confidence which has been compounded by political and policy uncertainty and unresolved regulatory conflicts.
Currently the subdued growth can be attributed to the stagnation in private investment and the declining mining, construction and manufacturing productivity mainly again due to the lack of implementing reforms.
The regulatory constraints, labour market rigidities and inefficient infrastructure have also played a major role.
Hon Deputy Chairperson, small, medium and macro enterprises, SMMEs, are being destroyed by harsh bargaining council rules. We see bigger
businesses and bigger unions reaching wage agreements which impact negatively on this sector.
Another aspect that is killing SMMEs are the minimum ware rules. Job seekers should be given the opportunity to bargain for his/her wage. Where is the freedom of choice?
Looking at economic institutions that support growth will require a capable state together with excellent relationships between the state and the private sector to ensure sustainable co-operation between the state, the private sector and any other partners is a prerequisite which will require the government to take the lead in strengthening the capability of the public sector.
Hon Deputy Chair, you must agree that the biggest stumbling blocks hampering economic growth are the state owned entities, SOEs. Eskom is the first that comes to mind. Their coal-fired power stations must be sold and allow Independent Power Producers, IPPs, access too the electricity grid.
Government must also look at renewable energy whereby tax rebates are provided to households and companies that install renewable
energy capacity combined with functional municipalities to procure their own energy.
The inherited spatial legacies can and should be addressed through inclusive transport systems as the majority of South Africa's workforce have to travel significant distances daily to get to and from their workplace.
Transport costs have increased by more than the annual inflation rate due to the weak foreign exchange rate as well as the excessive levies charged on the fuel prices. This has impacted negatively on the lowest wage earners who currently spend up to 40% of their wages on transport. It is therefore crucial that government focuses on sustainable transport infrastructure by improving the connectivity between key economic nodes.
Government must ensure that focused and flexible industrial and trade policies are in place to facilitate, in the long run, growth of the economy.
South Africa has a major potential in the tourism field, and it must be used to benefit the majority of South Africans. It is one of the sectors that can deliver inclusive growth through labour absorption
potential and can be improved through the reintroduction inter alia the Tourism Safety Initiative coupled with visible policing in tourist hotspots.
The above market is one that can only succeed, hon Chair, if government were able to provide a reliable electricity supply and less unplanned load- shedding. The lack of electricity is leading to excessive retrenchments - the shutting down of smaller establishment.
Hon Deputy Chair, in conclusion, we know and you know that the only way that South African economic landscape can change is through a government that is committed in the upliftment of its citizens by putting aforementioned programmes, which are but a drop in the ocean, in place which will assist the challenge currently facing South Africa, namely to break loose from its low growth trap without being caught up in an untenable debt trap.
We also need a clear vision and a process of implementation, so we all know which sectors can create jobs and which sectors have constrains. I thank you. [Applause.]