10 June 2025
Accelerate redistributive economic growth and advance the transformation of the financial sector as a predicator of inclusive industrial development and economic growth
His Excellency President Cyril Ramaphosa correctly asserted our commitment to social transformation in this house by making the point that. We will not be apologetic on advancing the required transformative policies and legislation to address the injustices of the past which continue to mirror the objectives of colonialism as the majority black South Africans, continue to be marginalized in the mainstream economy South Africa. The lack of active participation and ownership of the majority of South Africans in the economy is a structural feature that reproduces poverty and inequality. It inhibits the growth potential of this wonderful diverse nation with various capabilities and opportunities.
Another growth and redistribution inhibiting factor, is the high levels of concentration in our economy. As highlighted by the President. The sweet deals of apartheid have resulted in a few minorities of white males who control various economic sectors with gross uncompetitive behavior due to their value chain control. If our economy cannot enable Small and Medium Sized businesses to grow and earn a significant market share, the legacy of apartheid and colonialism will remain intact.
We must dispel the notion that Black Economic Empowerment is negatively impacting economic growth, as BEE has contributed to accelerating the redistribution of wealth and income through various policies and legislation. Without Broad Based Black Empowerment Act and the Employment Equity Act the pace of transformation in workplaces would have been lagging as various private sector players have raised concerns with the Progressive act. Despite the implementation of the Acts, the ownership patterns of the economy remain skewed to the majority. The ANC fully supports the implementation of transformative legislation such as the Public Procurement Act which will enable the implementation of set asides for women, youth, persons with disabilities and for identified sectoral goods and services for localization and to boost local industrial development. As Parliament we await the Regulations and urge the National Treasury to expedite its implementation. The Procurement Act is a key element of redistribution.
Honourable Members, the South African Financial Sector is a concentrated sector, with four banks controlling over 80- percent of the sector. This is an anomaly relative to other emerging economies. In our oversight on the Banking sector after receiving inputs from most of the major banking institutions, we found that credit allocation doe does not support emerging economic players mainly in the SMME sector, rather the Banks prefer allocating for other short-term financing due to their high profitability such as vehicle finance and home loans. Our banks have a significant component of their revenue been non-banking fees, reflecting a low-risk appetite for increased credit allocation to stimulate the economy. I must remind honorable members of the lack of support provided for SMME’s during covid-19 despite the guarantee by the State. The problem of Mutual Banks and Ithala in particular are also a risk for its users and government ought to intervene. The ANC will continue to advance the transformation of the financial sector as a predicator of inclusive industrial development and economic growth to Accelerate redistributive economic growth and advance the transformation.
The Finance Committee has also recommended a focus on our State-Owned Enterprises, which play a critical role in the network industries as a critical growth driving focus. Without their productivity and efficiency, the potential performance of our industries and economy is negatively impacted. Our SOE’s can be argued to be a backbone of the economy after the workers, because they enable private capital accumulation.
We welcome the measures to crowd in capital investments in various catalytic projects. The increase of Public and Private Investment is critical for the growth of Gross Fixed Capital Formation. The Public Private Partnership model should be executed in a manner that enables the State to develops its own capacity and capabilities.
We welcome theplans of Eskom to invest in the green economy and implore government to support the South African Post Office to adapt to the changed market and continue to serve our people. We also implore the National Treasury to focus on the taxation of the digital economy to enhance revenue collection and to enable competitive participation as the sector is in a growth trajectory.
As we celebrate Youth Month, we should regulate the economy to empower and benefit the youth as the present and future of this nation. Our youth are able to create economic opportunities through digital platforms such as e-commerce and we should significantly lower the cost of data and expand connectivity infrastructure. This is a critical objective the second phase of Operation Vulindlela should achieve.
The ANC has placed a focus on industrialization as a priority to create decent jobs and to transform the economy of the country through programmes such as the Black Industrialist Programme. Without the majority being part of industrial efforts as producers, will inhibit the true growth potential of South Africa. We support the Transformation Fund as a mechanism to increase access to finance particularly for the Historically Disadvantaged. This will support the unlocking of markets in the continent through the African Continental Free Trade Area and place Africans in the centre of value addition and trade of goods and services.
This we do for the future which of our Country to not be a mirror of the past but a vision encapsulated in the Freedom Charter and Africa Agenda 63.