ECONOMY
Govt 'can meet 6% growth target'
Posted Thu, 13 Oct 2005
The government could meet its objectives of six percent economic
growth and halving poverty and unemployment by 2014, the Cabinet
said on Wednesday.
A task team led by Deputy President Phumzile Mlambo-Ngcuka had
identified means of addressing constraints to the achievement of
4.5 percent growth in the next five years and six percent by 2014,
government spokesperson Joel Netshitenzhe told reporters in Pretoria.
"Combined with focus on improving labour absorption, such rates
of growth would ensure that we are able to meet the mandate of
government to halve unemployment and poverty by 2014," he said.
"We believe that what is being put forward by the task team will
ensure that we achieve these objectives."
The task team on Wednesday briefed the Cabinet on its work to
date, which was welcomed.
"(Cabinet) agreed with the methodology to identify binding
constraints to higher rates of investment and growth," Netshitenzhe
said.
To this end,
the government is to consider a number of
initiatives to boost growth — including "major infrastructure
programmes", sector investment strategies, education and skills
development, and interventions in the so-called second economy such
as access to micro-credit.
There would also be steps to boost government capacity in the
provision of economic services, Netshitenzhe said.
"In the coming weeks, further detailed work will be done and
consultations will be held with social partners to ensure that the
final product not only reflects consensus among the three spheres
of government but also that of all social partners to pursue a
common national objective."
Netshitenzhe said the current macro-economic environment was
conducive to the pursuit of higher growth rates.
The Cabinet also reviewed progress with small, micro and medium
business development, saying there would be more focus on
government procurement from small-scale
manufacturers.
Special attention would be paid to programmes to finance
women-owned enterprises and rural development.
On import parity pricing — by which some local enterprises
charge prices for goods as if they were sourced from abroad — it
was agreed that ways be found to replace this with a system of
"non-discriminatory pricing".
"It was agreed that the objective of government in this regard
would not be to set prices, but to consider a multiplicity of
levers to influence especially prices of inputs, in the interest of
accelerated growth and development," Netshitenzhe said.
"Work is continuing on the details, including further intensive
consultations with all roleplayers."
The Cabinet also approved the Codes of Good Practice on
Broad-based Black Economic Empowerment (BEE).
The first phase of the codes was subjected to public
consultations, resulting in an amended draft following more than
300 submissions, Netshitenzhe
said.
The codes would be gazetted within a month, after further
processing, and a draft of the second phase of the codes is to be
released for public comment soon.
The completion of the process would help ensure certainty in the
markets as to what was expected in terms of BEE, Netshitenzhe said.
Sapa
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