Finance Minister Pravin Gordhan in conversation with Talk at 9's Karima Brown, says the proposed minimum wage is an important contribution to lifting people out of income poverty and addressing the issues of inequalities and unemployment.
Yesterday the commission appointed to investigate minimum wage recommended that government implements R3 500 per month and R20 per hour.
The Commission revealed that 47% of adult population earn less than R3, 500 per month.
Gordhan says it is important to note that the Commission made a proposal, which is open for other constituencies and the public to discuss.
It’s an important contribution to lifting people out of income poverty and addressing the issues of inequalities and unemployment.— Pravin Gordhan, Finance Minister
Gordhan says it is important for people to acknowledge that South Africa's democracy is young, and creating an inclusive economy is a process.
Here are four key quotes from Gordhan that he believes would put South Africa on the right track:
1. 'We must ensure that our economy is growing. This means that people on the ground are experiencing that. There must be employment, both by private, which owns 80% of the economy, and public sector.'
'Lay the foundation of where the economy will grow and increase potential growth.'
'We have got to create confidence in our economy. Confidence is what tells people you can put money into our economy.'
- 'We need to have partnerships amongst us, partnerships that will contribute towards making sure we act in unity, together and ensure that as the country, despite all the difficulties that we have, we build consensus among ourselves.'
Gordhan also clarified what South Africa needs to get right to avoid a downgrade.
He says rating agencies look at the country's ability and willingness to pay, as well as the way the economic environment links to the current political situation.
I think we have done enough as SA, for ourselves as a country, and secondly to satisfy any need they may have.— Pravin Gordhan, Finance Minister
I think the SA community that has meet these agencies inside and outside of government has done an extremely good job as a team. I can’t predict what will happen.— Pravin Gordhan, Finance Minister
Listen to the audio below to hear more about the state of our economy and why Gordhan is still in office despite attempts to oust him...