On the 8th of July 2020, the ANC’s Economic Transformation Committee released a discussion document entitled “Reconstruction, Growth And Transformation: Building a New, Inclusive Economy”. The document, described by the head of the committee, Enoch Godongwana, as the basis for a social compact, argues for the South African government to play a larger role in steering the tattered South African economy into the post-Covid global economic terrain.
Finance Minister Tito Mboweni’s revised budget released in late June, states the cruel reality, “the main budget deficit, estimated at 6.8 per cent of GDP in the 2020 Budget, is now projected to reach 14.6 per cent of GDP”.
There is not much new about this vision:
The ANCs New Inclusive Economy recycles infrastructural spending towards greater localisation of production linked to export led growth.