Newly elected ANC president Cyril Ramaphosa says South Africa urgently needs to break the ongoing deadlock on the regulation and transformation of the mining sector.
Ramaphosa was elected into his new position on Monday evening after a recount was requested. He beat his opponent Nkosazana Dlamini Zuma by just 176 votes.
“South Africa enjoys world-class mineral resources – but these are not being properly utilised. It is imperative that we begin to attain higher levels of mining exploration and investment, which will assist us in creating jobs and boosting export revenues,” Ramaphosa states in an article on website ramaphosa.org.za.
In the article he goes on to say that “the South African economy is in urgent need of a recovery programme that lifts the rate of investment, stimulates growth and begins to create jobs at a faster pace. This is possible if all social partners work together on a common programme for investment, growth and jobs.”
If political and policy uncertainties are removed the country would “unleash a wave of investment” and corruption is rooted out the long-term fundamental strengths of the South African economy would be reasserted.
Ramaphosa outlines to objectives for the country:
Objective 1: If we can boost demand in the economy through restoring confidence and removing obstacles to investment, we will begin to create more jobs, improve consumer confidence and lay fertile ground for further investments. We also need to increase the numbers of foreign tourists and expand our exports to a wider range of trading partners.
Objective 2: We need to stabilise our public finances by cutting back expenditure and increasing certain taxes. This fiscal consolidation will have the undesirable effect of dampening demand in an economy already suffering the effects of a prolonged period of low growth.
“The surest way to counter this impact of fiscal consolidation is to stimulate new sources of demand through boosting private sector investment. In other words we must take active steps to ensure that we bring dynamism to the South African economy over the next few years by unleashing a massive new wave of private sector investment.”
Feature image credit: www.ramaphosa.org.za