The IFP supports the report subject to the following reservations which we would like to be noted.
Our economy continues to perform below its potential. The question is what are we doing about this? The International Money Fund, IMF, recently revised its growth outlook for South Africa downwards to 1,4% and this expert advice could be optimistic.
Even more worrisome is the trend that is emerging where the growth outlook for South Africa is now annually being revised downwards by reports such as the IMF world economic outlook. Why are we consistently underperforming? That is the question.
This continued downward revision by the IMF can only be as a result of domestic constraints in our economic growth, and issues such as disinvestment, noninvestment, the energy crisis and continued labour instability are placing severe constraints on our economic growth and must be addressed.
Foreign investors look for stability in all areas such as the social, economic and even political sphere before they will invest. Some international companies even go as far as to perform a 50-year forecast on a country before investing. Imagine what they are forecasting when they look at the current domestic socioeconomic and political environments in South Africa!
We are marketing ourselves as the gateway to Africa, but what are we doing to create an enabling environment where we are seen as an open and friendly market for foreign direct investments? These are tough questions which require even tougher answers and if we are to place our economy on an upward trajectory we need to address them. I thank you.