The Economic Freedom Fighters (EFF), despite two days of protests at Clicks stores around the country, made the time to list interventions for South Africa following a shocking second-quarter GDP figure. Stats SA, on Tuesday, reported that South Africa's GDP had declined by a whopping 51%, the lowest since 1960.
The party, in a statement released on Wednesday 9 September, said that while the pandemic and the lockdown were contributing factors, President Cyril Ramaphosa and his Finance Minister Tito Mboweni are also to blame.
FIGHTERS LIST 11 INTERVENTIONS FOR ECONOMIC RECOVERY
According to the EFF, steps to arrest the downward economic spiral should involve the following;
Government expenditure must increase, including the Basic Income Grant so that all South Africans can receive R1 000 a month;
- Government must partially nationalise companies in distress, particularly, in the manufacturing sector; [*]Immediate creation of a State-owned bank; [*]The approach to massive infrastructure development should be through, build operate and transfer models which should be underwritten by pension funds; [*]The government must cancel its COVID-19 loan guarantee scheme with commercial banks, and all transactions must be managed by the State Bank with political supervision of beneficiaries; [*]Insource all security guards, cleaners and gardeners in all national, provincial and municipalities including state-owned entities; [*]Issue an immediate instruction and allocate sufficient resources to Denel to expand massive industrial capacity to produce health equipment, including ventilators; [*]Amend the PFMA and MFMA to compel national, provincial and state-owned entities to procure 80% of all goods from local producers and a minimum of 50% from producers of which 50% is owned and controlled by women and the youth; [*]Government must declare additional special economic zones with zero company taxes and a building allowance in exchange for each investor to create 1 000 full-time jobs. In the immediate, the government must build makeshift structures to house companies that are willing to move from overpopulated metropolitans and assist them with subsidies to open their production in other provinces; [*]All food procured for hospitals, clinics, correctional facilities, school feeding schemes, and other institutions must be locally procured from black farmers; and [*]All retailers in South Africa should be mandated to put 60% of locally produced goods and products on their shelves.
MBOWENI AND RAMAPHOSA'S MISGUIDED APPROACH WILL NOT ASSIST SA'S ECONOMY – EFF
The EFF said the path Mboweni and Ramaphosa have chosen will only serve to decline South Africa's economy further, therefore, threatening the revenue base, deepening poverty and causing social instability.
"We are categorically clear that the nonsensical structural reforms proposed by Tito Mboweni are not a solution to South Africa's economic crises. The nonsensical structural reforms which are meant to privatise state-owned business and institutions will only serve to weaken the State further and must be rejected," it said.
The red berets said the people of South Africa must begin to appreciate that Ramaphosa ANC's misguided confidence in the so-called private investors, domestic and global, has not and will not bear any positive consequences.
"The State should play a much more significant and impactful role in the economy, and that is the only way our country will be saved from this decline," it added.