GNU allies of the ANC reject Ramaphosa's 10-point budget proposal

Partners in the Government of National Unity (GNU) have rejected ANC President Cyril Ramaphosa's 10-point economic plan, claiming he is repeating outdated policies that the government has previously failed to execute.

In closing the ANC's National Executive Committee meeting on Monday, Ramaphosa presented what he called a new 10-point plan that he claimed would increase job creation and economic growth. 

Preferential electricity tariffs for the production of steel, manganese, and ferrochrome are two examples of the president's economic interventions, which also included investments in transmission infrastructure and electricity tariffs to stimulate economic activity.

He said this would fast-track the Transmission Development Plan to install 14,500 kilometres of new transmission lines for the electricity grid.

“The second intervention is to accelerate the recovery of the freight and logistics sector. This includes the implementation of Transnet’s recovery plan, private sector participation in rail and port operations, and upgrading of export corridors.

The ANC's main partner in the GNU, the DA said for the new economic plan to succeed, the ANC must drop Black Economic Empowerment and race based policies.

The party’s Head of Policy, Mat Cuthbert said much of the president’s new economic plan mirrors the DA’s plan to turbocharge the economy, which 'identified roadblocks that need to be removed to build superhighways towards growth and jobs'. 

He accused the ANC of adding 'its own failed ideas of BEE and race based policy to the DA’s plan announced last month'.

“While we agree with several of the reforms proposed by President Ramaphosa, such as private sector participation in electricity and logistics, professionalising the civil service, ringfencing revenue for reinvestment into critical network infrastructure, and expanding support for SMEs, we question his ANC ministers’ ability to implement these reforms at the required speed and depth,” said Cuthbert.

He said that the DA remained concerned at Ramaphosa’s continued defence of the 'ANC’s failed BEE policy, which has deterred investment, stifled growth, and benefited ANC cadres at the expense of the vast majority of black South Africans who remain trapped in poverty and excluded from opportunity'.

Alternatively,  Cuthbert said South Africa needs a genuine empowerment model that makes a tangible impact in poor communities and creates a pathway out of poverty and into prosperity.

"This is why the DA will shortly be introducing legislation into Parliament to do exactly that.

“The DA will lend our support to reforms aimed at turbocharging the economy, but will continue to oppose and change those policies which undermine growth and jobs,” said Cuthbert.

Mmusi Maimane, the leader of Build One South Africa (BOSA) movement, which is another GNU partner, also dismissed the new economic plan as an old song.

He said what is critical is that the capability and competence of the state has been eroded by the ANC, 'therefore regardless of the plan, the country’s economic growth is unachievable'. 

“The lack of accountability means this plan must have timelines that people can be held accountable for.  The ANC has destroyed municipalities which are central hubs for economic growth, safety of citizens... the plan will suffer profoundly due to lack of municipal competence. Businesses and people work and live in a municipality, not nationally,” said Maimane.

Economist Professor Bonke Dumisa cast doubt on the feasibility of the intervention.

He also poured cold water on the new economic plan, arguing that since it had never materialised previously, he did not see what could make it work now.

He said the country has heard previously about investing in infrastructure and supporting small business, however, to date nothing has been achieved.

“I doubt that the plan will achieve anything. For me this plan is a tangent,” said Dumisa.

willem.phungula@inl.co.za