Johannesburg: The South African economy needs to diversify if it is going to meet the needs of its young growing population, despite President Cyril Ramaphosa’s call for seeking 100 Billion Dollars Foreign Investment over the next five years.
The South African problem is structural and the first is that patterns of the economy didn’t change even after 1994.
The country’s infrastructure particularly state-owned entities were designed in a way that they must give state capacity to serve the interests of private business.
Moelestsi Mbeki in his book “ A Manifesto For Social Change” explained deeper the inherent problem that ANC government found in place.
He continued to say, the South African government must become self-sufficient and stop relying on Foreign Direct Investment (FDI).
This is informed by the fact, they influence policy direction of the government, for example during the last term of Jacob Zuma most companies were pulling out because of alleged corruption.
Those who suffer are the poor people on the ground who have voted a party to be in government and when a business does not like the policies, they, in turn, pull out investment which has a negative effect in the economy.
Even Countries like the United Kingdom practiced mixed economy theory, and it has proven to yield results, the government needs to create an enabling environment for its own people to flourish when they venture into business.
They need to establish a state bank that will be responsible for financing and mentoring of small businesses, by far South Africa is regarded as the richest country in the world.
But it has high inequality rate because of the inherent apartheid economic patterns that were made to benefit the elites.
The ruling party needs to create state capacity and limit outsourcing which have undermined their efforts the fasten service delivery.
This is evident in Auditor General annual report where fruitless and unnecessary expenditure amounts to billions of rands.
This is happening because of government inability to play an oversight role and deployment of wrong people in the decision making positions.
The country needs to take advantage of its resources and implement policies which will advise the interest of the many of its highly impoverished people.