Tito Mboweni / Photo by GCIS
The tussle between the ANC and its trade union partners enters a new era.
Tito Mboweni / Photo by GCIS
President Cyril Ramaphosa called an extraordinary extended cabinet meeting of all his ministers and deputy ministers in Tuynhuys yesterday to obtain their backing for Finance Minister Tito Mboweni’s economic recovery plan called “Economic Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa”.
The document of almost 80 pages provides a blueprint for medium term economic growth which has elicited mixed reactions so far.
Much as it is understood to closely reflect the wishes of President Cyril Ramaphosa, its reliance on free-market thinking and the sale of state assets have set red lights flashing for the ANC’s alliance partner, the trade union federation Cosatu.
Cosatu has said the Mboweni plan will increase uncertainty about the direction of the country’s economy and will create labour conflict.
That forms the background against which Ramaphosa rallied his troops to Tuynhuys yesterday – he needs wider backing within the ANC and the ruling alliance for Mboweni’s economic plan, which proposes, amongst others:
Although these seem good ideas to those more supportive of a free market approach, Ramaphosa needs to bind in his opponents on the left, and one (maybe not very effective) way could be by a binding cabinet resolution on the basis of joint responsibility, reached in a sphere (Cabinet) where the President has definite majority support.
It is a risky strategy, though, as it could lead to big differences within cabinet, could force wholesale changes to Mboweni’s document, and because any battle within cabinet is sure to be leaked to the media should it turn too nasty.
At a briefing to the parliamentary press corps on Thursday afternoon, Minister in the Presidency Jackson Mthembu put a predictably rosy gloss on it all, calling the extended cabinet discussion on the matter “fruitful” without giving any details of the discussions. He also thanked the more than 700 South Africans who had sent in submissions to add to Mboweni’s plan.
Cabinet will start leaking soon. Keep an eye on it – this time it could be crucial for the medium term direction of our economy.