ANC national policy conference: Here's what's on the economic agenda
The ruling African National Congress' national policy conference kicked off yesterday as the party seeks answers to a stagnant economy battered by power shortages and slowing global growth. CNBC Africa’s Godfrey Mutizwa caught up with Minister Mmamoloko Kubayi, the party's Head of Economic Transformation Committee. She says a lot is on the table, including relooking fiscal and monetary policies, a basic income grant and foreign ownership of the South African Reserve Bank.
Thu, 28 Jul 2022 12:18:01 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Key discussions at the conference include fiscal and monetary policies, the implementation of a basic income grant, and the ownership of the South African Reserve Bank.
- The ANC is focused on developing people-centered macroeconomic policies to address poverty, unemployment, and inequality.
- Delegates are considering proposals for a basic income grant and exploring funding mechanisms such as a wealth tax to support social welfare programs.
The ruling African National Congress (ANC) has kicked off its national policy conference, with a strong focus on reviving the stagnant economy in South Africa. The party's Head of Economic Transformation Committee, Minister Mmamoloko Kubayi, outlined the key themes and points of discussion at the conference in a recent interview with CNBC Africa. The conference aims to address critical issues such as fiscal and monetary policies, the implementation of a basic income grant, and the foreign ownership of the South African Reserve Bank.
Minister Kubayi highlighted the importance of consolidating views from various party structures and branches to develop a final document that will be adopted at the national conference. One of the central topics of discussion is the macroeconomic policy, with a focus on ensuring that fiscal and monetary policies are people-centered and aligned with the goal of addressing poverty, unemployment, and inequality.
The ANC is also considering the question of the Reserve Bank's mandate and ownership. While there have been discussions on the need to broaden the Bank's mandate to include issues such as employment and small and medium enterprises, Minister Kubayi emphasized the importance of maintaining inflation targeting to prevent economic instability.
A key proposal on the table is the introduction of a basic income grant to address poverty in South Africa. However, Minister Kubayi emphasized the need to carefully consider the funding mechanism for such a grant to avoid undue burden on the poor and middle class. The ANC is exploring options such as a wealth tax to finance the grant.
When it comes to fiscal policy, some party members have expressed concerns about the focus on debt repayment and the impact on development. Minister Kubayi clarified that the government's reprioritization efforts have been aimed at redirecting funds to areas of pressing need, such as during the COVID-19 pandemic.
Regarding monetary policy, discussions include the ownership of the Reserve Bank and the potential widening of its mandate. Minister Kubayi mentioned the importance of evidence-based discussions on transitioning Reserve Bank ownership from private to public, citing examples from other countries. The ANC is cautious about making significant changes to monetary policy that could lead to high inflation and economic instability.
As the ANC continues its policy conference, delegates will engage in robust discussions to determine the best path forward for South Africa's economic recovery. The party is committed to implementing policies that prioritize the well-being of its citizens while ensuring long-term economic stability and growth.