Budget Speech malusi gigaba

(Photo by Gallo Images / Beeld / Felix Dlangamandla)

“Our economy is still built on the foundations of oppression and colonial relations” – Gigaba

Malusi cries foul over economic institutions.

Budget Speech malusi gigaba

(Photo by Gallo Images / Beeld / Felix Dlangamandla)

Speaking to 400 ANC Youth League members in Pinetown, Durban on Saturday, Finance Minister Malusi Gigaba stated that there was still huge inequality in South Africa’s businesses and society.

He spoke mostly in isiZulu, and used the “few controlling the many” line of attack. He targeted the ‘monopoly’ held by a small number of powerful people who serve to only enrich and look after themselves.

Read: Ramaphosa tells MP’s white-controlled economy must change

Gigaba pointed to the Johannesburg Stock Exchange as his main source of evidence, citing that there are very few black-owned companies registered with them. He believes that the number is actually less than 5%.
What Malusi said Five key points from his speech:

  • Our economy is still built on the foundations of oppression, and colonial relations (referring to the JSI)
  • Looking at how to transform the economy we must ask ourselves what steps we need to take to make the economy democratic
  • Junk status will make it more expensive to borrow money from international bodies, which will make it difficult to build infrastructure by state-owned entities and the jobs that would come with it.
  • For the economy to work ‘the right way’, the focus should be on changing how it was controlled. The country needed to be weaned off its reliance on minerals and focus more on investing in industries
  • We must look at the industries we have and emerging industries that we can enter into

Read: Treasury in hot water as Gigaba’s adviser says SA must be ready to be like Zim

Gigaba spoke openly and candidly about the junk status looming over the SA economy. Given that he has been at the eye of the storm during the cabinet reshuffle and economic downgrade, the Finance Minister has no choice but to face the matter head on. He warned that the effects of a long-lasting junk status could lead to runaway inflation that hits the poor harder than anyone else.

Saturday’s speech was a flirtation with populism for Malusi. The ‘few against the many’ approach was the bedrock of his argument and predictably went down well with his audience.

The problem is, however, people in glass houses should not throw stones. You have to be incredibly careful protesting corruption if you’re employed by Jacob Zuma.