{"id":91404,"date":"2025-10-13T09:37:24","date_gmt":"2025-10-13T09:37:24","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work"},"modified":"2025-10-13T10:03:39","modified_gmt":"2025-10-13T10:03:39","slug":"ancs-plan-to-save-south-africa-wont-work","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work","title":{"rendered":"ANC\u2019s plan to save South Africa won\u2019t work"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The ANC\u2019s recently unveiled ten-point plan to boost South Africa\u2019s economy, while workable in theory, will not work if existing governance issues and bureaucratic constraints continue.<\/p>\n

To address this, and make the plan workable in practice, Aluma Capital chief economist Frederick Mitchell proposed combining the ANC\u2019s plan with an alternative pathway.<\/p>\n

This pathway complements the ANC\u2019s plan but calls for more dramatic measures, like scrapping Black Economic Empowerment (BEE) policies and reducing regulatory constraints.<\/p>\n

Mitchell explained that the ANC\u2019s plan presents a step towards stabilisation, emphasising strengthening government capacity and addressing energy, infrastructure, and industrial bottlenecks.<\/p>\n

He said this comes as the country faces significant economic challenges that threaten South Africa\u2019s stability and future prosperity.<\/p>\n

\u201cOver the past decade, sluggish growth, high unemployment \u2013 particularly among the youth \u2013 and infrastructure decay have become critical issues,\u201d he said.<\/p>\n

\u201cThese problems are compounded by inconsistent policies, energy shortages, and a prevailing uncertainty in the investment climate.\u201d<\/p>\n

Therefore, key initiatives of the ANC\u2019s plan include leveraging electricity tariffs and transmission investments to stimulate economic activity, revitalising the freight and logistics sectors, and rebuilding the chrome and manganese industries.<\/p>\n

\u201cThese are vital steps considering South Africa\u2019s role as a major exporter of mineral commodities and its dependency on efficient logistics,\u201d Mitchell said.<\/p>\n

In addition, the ANC proposed expanding local economic development, public employment, and SME support, with the aim to create jobs and empower small businesses.<\/p>\n

Mitchell said establishing the \u201cEconomic War Room\u201d proposed in the plan is intended to ensure accountability and swift implementation.<\/p>\n

\u201cImportantly, efforts to diversify trade partners and expand exports are strategic moves to reduce reliance on a handful of markets,\u201d he said.<\/p>\n

However, he pointed to critics who argue that persistent governance issues, including corruption, policy inconsistency, and infrastructure neglect, may hamper these initiatives.<\/p>\n

\u201cPast policies such as broad-based BEE have sometimes created inefficiencies and deterred investment,\u201d Mitchell said.<\/p>\n

The Bureau for Economic Research\u2019s Tracey-Lee Solomon explained that, while many of the ANC\u2019s proposals are commendable, few are new. She added that implementation, rather than planning, also remains key.<\/p>\n

Mitchell explained that this illustrates the importance of refining strategies to not only focus on state-led solutions but also foster a competitive, investor-friendly environment.<\/p>\n

He said that while the ANC\u2019s ten-point plan rightly targets critical sectors and government capacity, real progress depends on implementing reforms that free enterprise from excessive bureaucratic constraints.<\/p>\n

An alternative<\/b><\/p>\n

Aluma Capital chief economist Frederick Mitchell<\/p>\n

Mitchell pointed to a set of reforms proposed in the Alternative Economic Blueprint that complements the ANC\u2019s plan and offers a promising pathway toward sustainable growth, job creation, and economic freedom.<\/p>\n

In contrast to the ANC\u2019s plan, the Alternative Economic Blueprint focuses on economic liberalisation, property rights, and reduced regulatory constraints.<\/p>\n

\u201cIt emphasises expanding trade access, especially to critical markets like the US, reassessing laws around expropriation, and lowering taxes to spur consumer spending and investment,\u201d Mitchell explained.<\/p>\n

\u201cIt advocates for the scrapping of BEE and diversity mandates in favour of merit-based entrepreneurship, creating a more equitable environment for business growth.\u201d<\/p>\n

This comes amidst increased calls for BEE regulations in South Africa to be reconfigured or scrapped entirely, with the latest calls coming from Trade Minister Parks Tau and former president Kgalema Motlanthe.<\/p>\n

The call from Tau and Motlanthe to review the policy seeks to remove loopholes that have been exploited by well-connected individuals to ensure they benefit from BEE deals at the expense of others.<\/p>\n

Mitchell added that labour reforms and tackling crime and corruption are also central to this blueprint\u2019s vision. These reforms are critical to enable a more competitive and secure environment for entrepreneurs.<\/p>\n

Mitchell believes that combining the ANC\u2019s infrastructure and industrial focus with the blueprints\u2019 call for liberalisation and property rights reform could unlock the full potential of South Africa\u2019s economy.<\/p>\n

\u201cAchieving sustainable growth requires a pragmatic synthesis of both strategies \u2013 building on the ANC\u2019s initiatives while embracing the reforms advocated by the Alternative Blueprint,\u201d he said.<\/p>\n

\u201cThis would involve maintaining vital infrastructure projects and industrial revitalisation, but framing them within a broader policy environment that prioritises property rights, free-market principles, and corruption eradication.\u201d<\/p>\n

Several experts have warned that South Africa\u2019s unfriendly trading environment significantly hampers growth.<\/p>\n

Earlier in 2025, the International Monetary Fund (IMF) found that South Africa came last in a ranking of the ease of doing business in 50 countries.<\/p>\n

The organisation said that if South Africa could even just achieve an ease of doing business equal to the average, the country\u2019s economic growth rate would double.<\/p>\n

In the World Bank\u2019s latest report on South Africa, the lender also said that strengthening market competition and more efficient institutions are low-hanging fruit for the country.<\/p>\n

The World Bank said this is one of the major reasons behind the country\u2019s high unemployment rate and the difficulty some South Africans have in finding stable and productive jobs in the country.<\/p>\n

The bank said the burden on South African institutions has become excessive, for businesses, citizens and for public administration.<\/p>\n

It recommended strengthening and broadening market competition in South Africa by easing the regulatory burden on businesses as a simple way to drive short-term results.<\/p>\n

For More News And Analysis About South-Africa<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The ANC\u2019s recently unveiled ten-point plan to boost South Africa\u2019s economy, while workable in theory, will not work if existing governance issues and bureaucratic constraints continue. To address this, and make the plan workable in practice, Aluma Capital chief economist Frederick Mitchell proposed combining the ANC\u2019s plan with an alternative pathway. This […]<\/p>\n","protected":false},"author":84,"featured_media":91403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[275],"class_list":["post-91404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-south-africa-2"],"yoast_head":"\nANC\u2019s plan to save South Africa won\u2019t work - South Africa<\/title>\n<meta name=\"description\" content=\"The ANC\u2019s recently unveiled ten-point plan to boost South Africa\u2019s economy, while workable in theory, will not work if e ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ANC\u2019s plan to save South Africa won\u2019t work\" \/>\n<meta property=\"og:description\" content=\"The ANC\u2019s recently unveiled ten-point plan to boost South Africa\u2019s economy, while workable in theory, will not work if e ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-13T09:37:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-13T10:03:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/10\/sm_1760337150.308832.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"ANC\u2019s plan to save South Africa won\u2019t work\",\"datePublished\":\"2025-10-13T09:37:24+00:00\",\"dateModified\":\"2025-10-13T10:03:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\"},\"wordCount\":889,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/10\/sm_1760337150.308832.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/ancs-plan-to-save-south-africa-wont-work\",\"name\":\"ANC\u2019s plan to save South Africa won\u2019t work - 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