Gigaba set to outline government’s inclusive economic plan

Finance Minister Malusi Gigaba is expected to outline government’s inclusive economic plan of action on Thursday.

There has been an apparent trust deficit between government and business since a cabinet reshuffle earlier this year.

The Bureau for Economic Research (BER) revealed on Wednesday that there has been a reversal in economic prospects. In the first quarter business remained positive that South Africa’s economic fortunes would make a U-turn in 12 months’ time.

But the latest data reveals this view has reversed dramatically and this can mainly be attributed to the credit rating downgrades and the recession.

Economist Thabi Leoka says Gigaba will need to restore business confidence and clear his name.

Investment from corporate South Africa has been quite negative over the quarters so he needs to speak to corporate South Africa and instill confidence in them and also make sure that he bridges the trust deficit that I think has widened between government and business since the reshuffle at the end of March.

Thabi Leoka, economist

Again, I think the onus is on the minister to reassure and to explain his situation. Clear his name to business and South Africa , to those who are still doubtful that he is the best person for the job.

Thabi Leoka, economist

Leoka believes that this approach would work in Gigaba's favor although the party's sentiments on white monopoly capital hampers this.

Words such as white monopoly capital haven't also helped bridge the gap between business and government, so I think it is going to be difficult for him to convince business that he is on their side and he wants to collaborate with business to stimulate growth.

Thabi Leoka, economist

She says trying to stimulate economic growth in this period is going to be hard and clarity is needed on the country's economic policy.

We have just had the policy conference and in December members of the ANC will vote for policies they deem suitable, so for everyone i think its just a wait and see between now and then, also trying to stimulate economic growth is going to be very hard. I see why certain business members would wait and see for clarity in terms of policy.

Thabi Leoka, economist

Click on the link below to listen to the full audio....


Recommended

by NEWSROOM AI
Read More
No certainty if strange stone originates from outside the solar system

No certainty if strange stone originates from outside the solar system

In 2013 researchers announced the 'Hypatia' stone found in the south-west of Egypt, was most certainly not from Earth.

[LISTEN] ANC's proposed land expropriation explained

[LISTEN] ANC's proposed land expropriation explained

The Institute of Race Relations explains the confusion around the proposed amendment to Section 25 and how this affects property.

ANC leaders split on radical economic transformation, white monopoly capital

ANC leaders split on radical economic transformation, white monopoly capital

There's been a lot of heated debate at the ANC's national policy conference as delegates disagree on several important matters.

‘South Africa (and the world) can succeed without economic growth’

‘South Africa (and the world) can succeed without economic growth’

The Money Show’s Bruce Whitfield interviews University of Pretoria Professor of Political Economy Lorenzo Fioramonti.

Gigaba said he failed to assure Moody's about SA economic policy- senior journo

Gigaba said he failed to assure Moody's about SA economic policy- senior journo

The Finance Minister admitted that he faced difficult questions from investors during his visit to the US, says Simon Marks.

Rating agencies are worried about the direction of economic policy - economist

Rating agencies are worried about the direction of economic policy - economist

Isaac Matshego, an economist at Nedbank, lays down the impact of South Africa's downgrade on interest rates.

Popular articles
Thandeka Gqubule prepared to fight EFF to the end

Thandeka Gqubule prepared to fight EFF to the end

SABC Journalist and part of the SABC 8 Thandeka Gqubule says she has not had any communication from the EFF.

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

Laywer Tebogo Malatji gives an update on Wednesday's meeting between Minster Pravin Gordhan and PP Busisiwe Mkhwebane.

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

South Africa has a brand-new bank! The Money Show’s Bruce Whitfield interviews Adrian Gore, Discovery Group CEO.

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Mashaba posted a picture of a man pushing a trolly full of cow heads saying that he had him arrested for an "illegal act".

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

The Money Show’s Bruce Whitfield interviews Telkom Group CEO Sipho Maseko.

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

The Money Show’s Bruce Whitfield interviews branding and advertising expert Andy Rice about Merc's stirring new ad.

'I don’t spend much. I drive an old car. I’ve never been in debt'

'I don’t spend much. I drive an old car. I’ve never been in debt'

Bruce Whitfield interviews analyst Chris Gilmour about his attitude toward money (hopes and fears, successes and failures, etc.).

[WATCH] Iceland’s Christmas advert banned- for being too political

[WATCH] Iceland’s Christmas advert banned- for being too political

Khabazela shares tweets and Facebook posts that have gone viral.

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

The Money Show’s Bruce Whitfield interviews Rain CEO Willem Roos for his weekly “ShapeShifter” feature.