DA leader John Steenhuisen.Photo: Papi Morake/Garo Images
SUnder the new Democratic Alliance (DA), Africa's debt burden will be reduced and small and medium-sized enterprises will be supported to register on the Johannesburg Stock Exchange and exempted from regulatory red tape, while job creation and economic growth will be achieved. The minimum wage will be frozen to facilitate this. ) Economic planning.
The plan, laid out by DA leader John Steenhuisen on Friday, also aims to remove import duties on business tools such as small bakkies, convert the Social Distress Relief Grant into a Jobseeker Grant and provide support for foster care workers. The funding will be raised from the Jobseeker Grant. The ban on imported used cars from R530 to R760 will also be reviewed.
The DA has set out a 68-page '2024 plan to unleash businesses, grow the economy and create jobs', submitted by Mr Steenhuisen and policy director Matthew Cuthbert, to help the government tackle the unemployment crisis. It was touted as a “historic'' and “groundbreaking'' document that focused primarily on Small business growth and large-scale labor reforms.
It also stimulates economic growth, reviews import tariffs and controlled prices (including fuel and electricity prices), reduces debt to recover from the fiscal cliff, dismantles regional “cartels” and Increase competitiveness.
Mr Cuthbert said South Africa was in “deep economic turmoil”, facing the world's worst unemployment crisis, threats to the independence of the Reserve Bank and had uncompetitive industries.
He said: “The Crown Prosecution Service’s plan to rescue the economy comes from recognizing the important role of small businesses and entrepreneurship in improving the ease of doing business and promoting economic growth and development in South Africa. It’s starting.”
“Some of the mechanisms include eliminating import duties on critical business tools, establishing resources and facilities to support small businesses and job creation, and reforming the regulatory environment to create a conducive business environment.
“South Africa's financial situation is rapidly deteriorating due to high levels of debt and rising interest and debt payments, all of which reduce the budget available for frontline service delivery.
“The DA will ensure that the South African state has the fiscal space to meet its constitutional obligations by reducing the national debt.”
Mr Cuthbert said the party would ensure responsible monetary policy and the independence of the Reserve Bank.
Mr Steenhuisen said the policy document had been developed “in consultation with some of the world's best economic thinkers” and was based on examples of global best practice. The system is built “on the very simple basis of the fundamental truth that wrong choices made by the wrong people led to the wrong outcomes, and that better choices made by the right people … can solve this crisis.” I did.
“The DA is the right party to create jobs in South Africa and liberate South Africans from 30 years of failed policies that have left 12 million South Africans unemployed and forced many into a poor life. ” The yoke of economic disaster. So I think this is a historic moment not only for our party but also for South Africa,” he said.
He said the party's most important promise, announced when it released its election manifesto in February, was to create 2 million new jobs and “lay the foundations for a fast-growing, modern and vibrant new economy.” “That's true,” he said.
“This policy sets out how we will improve the ease of doing business, which alone will create 250,000 to 400,000 new jobs. Through better financial choices. “It will create an additional 250,000 to 500,000 new jobs,” he said.
“Reforming labor policy through better options, including the introduction of the new Youth Employment Opportunities Certificate, will create hundreds of thousands more jobs for young people.
“One of the most heartbreaking moments for me as a political leader was traveling around the country and meeting young alumni who had worked with TVETS. [technical vocational education and training institutions] And universities stand at traffic lights, clutching certificates and begging for jobs. It is not right that young graduates with these skills cannot find jobs in our economy. ”
He said an additional 500,000 to 1 million new jobs could be created by making better choices and greater representation in collective bargaining, and by exempting small and micro businesses from agreements they can't afford. , said the government's changes in industrial and trade policy would create new jobs. 250,000 to 500,000 jobs and 100,000 to 150,000 jobs, respectively.
“Unlike other political parties that are soft on their jobs promises, all of the promises in the DA's economic policy are the result of thorough cost accounting and cutting-edge research,” Steenhuisen said.
A policy document study conducted over a six-year period that tracked the spending of 500 small and medium-sized enterprises found that, on average, 4% to 6% of sales were spent on compliance with regulatory requirements, compared to capital expenditures and It turns out that this is hindering job creation.
Similarly, the informal sector is struggling under current adverse conditions, even though it accounts for about 17% of total employment and contributes about 6% of gross domestic product.
By making financial support, one-stop-shops, business tool kits, and essential tools more affordable, the DA's proposals will “strengthen the startup ecosystem, ease starting a business, and foster entrepreneurship and business growth.” The purpose is to promote.
“Removing import duties on essential business tools, such as single-cab bakkies, can significantly support small and medium-sized enterprises, entrepreneurship and economic activity, especially in rural areas,” the policy document says. .
The report notes that despite South Africa's strong car manufacturing sector, locally manufactured models remain more expensive than imported substitutes.
“However, auto industry policy has pushed up cheaper import substitutes through 25% import duties, resulting in higher prices for consumers and lower prices for small and medium-sized businesses, especially in underserved regions. The affordability gap is widening.”
The document proposes that stock exchanges such as Nasdaq Stockholm learn from Sweden, which provides platforms such as Nasdaq First North for small and medium-sized enterprises to list and raise capital through initial public offerings. There is.
According to the policy, the DA will also protect the unemployed and provide further business opportunities by converting Social Distress Relief Grants into Jobseeker Grants, which will help beneficiaries actively pursue job opportunities. It will help people find new businesses and start small businesses such as fruit sales. And vegetables.
“This is a serious policy, and after decades of governing dozens of municipalities and major provinces, learning and internally reforming, this is a policy that shows South Africans that we are serious about governing.” said Steenhuisen, calling on President Cyril Ramaphosa to weigh in on the policy. Discussion before the general election on May 29th.
“Today, I am confident in my policies and therefore issue a challenge to President Cyril Ramaphosa to stop hiding,” he said.
“Let's have an open, honest and frank discussion about the future of South Africa and the choices that lie before South Africans. I'll give it to you.”
