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Godongwana says industrial development will set SA on path to economic growth

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Minister of Finance, Enoch Godongwana has stated that industrial development is important for South Africa if it wants to get on the path to economic growth.

On Tuesday, 21 September 2021, National Treasury published the speech delivered by the Minister of Finance, Enoch Godongwana on the policy changes of economic development in the country. This was at the launch of the book, Structural Transformation in South Africa: The Challenges of Inclusive Industrial Development in a Middle-Income Country.

In his speech, the minister pointed out how the current state of South Africa’s economy is unsustainable, how real GDP per capita has been declining, and how productivity growth had been slow and slowing down further. Furthermore, the unemployment rate has increased to a record high of 34.4 percent, which is also a contributing factor.

Godongwana also stated that industrial development would be critical for the aspirations of the nation to achieve higher levels of economic growth, job creation, transformation and development. As he concluded, he stressed the need to ensure that there is alignment between industrial and fiscal policy in order to achieve this.

See the post below.

What are the proposals by Godongwana on export diversification?

The minister stated that industrial policy seeks to achieve greater trade and export diversification – especially to higher, value-added exports. To achieve this, the country should pursue greater integration of manufactured products into global value chains within the Southern African Development Community (SADC) and African continent.

What are the proposals by Godongwana on policy coherence and certainty?

Godongwana believes it is important to strive for policy coherence and certainty across the economy, as strengthening capacity of the state to implement policies draws particular importance since South Africa has no scarcity of policy documents, positions and pronouncements.

What are the proposals by Godongwana on growing a productive economy?

Godongwana stated that through the Economic Reconstruction and Recovery Plan, the ultimate goal is to greatly increase South Africa’s manufacturing output, reduce the proportion of imported intermediary and finished goods, and expand on the capacity of local suppliers.

Mahlohonolo Lakaje
[email protected]

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