Tag Archives: economic growth

SA economic growth will succeed by building universities

Minister of Higher Education and Training, Dr Blade Nzimande
Minister of Higher Education and Training, Dr Blade Nzimande

 

Minister of Higher Education and Training, Dr Blade Nzimande believes that in order to ease the student burden when enrolling for university for further education and studies will only come with the building of new universities.

New information has revealed that roughly 21% of all student applications to universities in the country were successful. It is clear that there is an increased demand for higher education in the country.

The aim of the Department of Education is to meet the prescribed goals of the National Development Plan which requires that higher education participation in the country increase from 19.9% to 30% by 2030.

The government has allocated a large portion of the national budget towards education since 2007 and intends to commit a further R6 billion over the next 2 years. In addition, the establishment of the new University of Mpumalanga (UMP) is going to need roughly R7 billion over the course of 10 years.

The establishment of UMP is a clear indication that the government is committed to the transformation process within the education sector and is determined to provide access to education to all individuals in South Africa.

It is  forgone conclusion that higher education contributes to national development and growth, the question is what is the standard of quality of this education. Institutions of higher education and learning play a pivotal role in training students for the labour market and provide individual with the necessary skills to succeed in their careers.

Not only do universities provide teaching, learning and professional development for students, universities and other institutions of higher education provide leadership skills through research and knowledge creation in critical areas of national development. Higher education is not about physical buildings rather it is about the development of cultural and economic life of our communities.

“We therefore expect no Ivory Towers here but rather an institution accessible to all, particularly the rural communities of Mpumalanga, where some of this university’s research will be done. It is from these communities as well as from across the country that it will draw its students. Therefore, there should be engagement at all levels of the institution,” Dr  Nzimande was quoted as saying at the launch of the University of Mpumalanga.

The minister also reiterated the point that higher learning and the establishment of more universities across the country is important in the reproduction and transformation of the society.

“At the University of Mpumalanga, learning and culture should embody democracy and social justice, whilst contributing to transformation, growth and development of the economy. The university must contribute to creating a non-racial and non-sexist egalitarian society underpinned by human dignity, the rule of law, a democratic ethos and human rights,” the minister stated.

Dr Nzimande also highlighted that fact that expansion of higher education institutions across the country must be accompanied by a good quality of education.

Source: SAnews.gov.za

21st World Economic Forum on Africa commences

The 21st World Economic Forum on Africa, which is to be attended by in excess of 900 participants from 60 countries, commences in Cape Town.

The three-day conference will focus on precisely how sub-Saharan Africa can maintain its growth path and turn into one of the pillars of global growth and demand.

To be organised within the subject, Shaping Africa’s Role in the New Reality, the conference is going to take place against the background of the growing global acknowledgment of Africa’s development potential.

Finance Minister Pravin Gordhan, the lead minister for WEF, remarked that in redefining the nation’s association with the world, South Africa’s message was indeed shifting beyond the focus on its abundant cultural diversity.

“We are currently showcasing our accomplishments in the areas of science, technological innovation, financial services and our acknowledgement as a systemically crucial member of the international community.

“In our hosting of WEF Africa, we will with certainty declare that South Africa is definitely responding to the new reality,” he said.

Finance Minister Pravin Gordhan

Gordhan mentioned the nation is without a doubt perfectly positioned in the changing poles of power and economic growth, not merely as an emerging market, but more as a leading economy on a continent this is certainly an invaluable partner within the global economy as well as being home to roughly 15 percent of the world’s population.

“All of us are formidable supporters of inclusive growth, job creation, and the diversification of the economy,” the minister claimed.

He added the fact that South Africa has been actively taking part and adding to positions developed in global policy making.

“We may also be assuming a progressively more significant place in the global arena. We are one of the non-permanent members on the United Nations Security Council, the sole African nation to be a member of the G20, as well as not too long ago, we have obtained a seat at the table of the Brazil, Russia, India, China and South Africa forum (BRICS), which, with its inhabitants in excess of 3 billion people, functions as a significant platform for global dialogue and cooperation.”

Certainly one of concerns to be talked about at the WEF Africa will most certainly be just how African economies will be able to mitigate their exposure to the volatility and unpredictability in commodity prices and ways in which the continent can bolster its voice in multilateral community forums much like the G20 and the Seventeenth Conference of the Parties of the United Nations Framework Convention on Climate Change (COP 17). The COP 17 conference is going to be organised in Durban in December.

President Jacob Zuma

As being the largest economic system on the continent, South Africa has long been and definitely will continue to utilize its seat on multilateral fora, along with the International Monetary Fund, the World Bank and the G20, to boost Africa’s interests.

South Africa will in addition take advantage of its membership of BRICS to improve Africa’s voice in the world.

Africa’s enhanced economic prospects have mainly been due to steps undertaken by African nations themselves to get rid of political conflicts, improve governance and develop improved macroeconomic conditions.

Despite the fact that Africa will definitely reap the benefits of globalisation, which is certainly most likely to spur demand for commodities, the continent’s expansion into the future will probably be influenced by social and demographic shifts currently underway.

The South African Government delegation to WEF Africa will be headed by President Jacob Zuma, who is going to be accompanied by the following ministers:

* Pravin Gordhan: Minister of Finance
* Trevor Manuel: Minister of National Planning: The Presidency
* Rob Davies: Minister of Trade & Industry
* Ebrahim Patel: Minister of Economic Development
* Tina Joemat-Pettersson: Minister of Agriculture, Forestry & Fisheries
* Malusi Gigaba: Minister of Public Enterprise
* Marthinus van Schalkwyk: Minister of Tourism
* Dipuo Peters: Minister of Energy
* Edna Molewa: Minister of Water and Environmental Affairs
* Naledi Pandor: Minister of Science and Technology

Several South African business people will in addition participate in the WEF conference.

Source: BuaNews

Pravin Gordhan rethinks economic transformation

Finance Minister Pravin Gordhan

In order to meet the ambitious target of developing the overall economy by seven percent per annum, Finance Minister Pravin Gordhan suggests the country will need to redefine its economic transformation strategy.

“All of us would need to redefine economic transformation. We have been in simple terms mimicking precisely what the previous elite did … all of us choose to wear precisely the same attire and drive precisely the same cars. Where is the social conscience of the new elite?” asked Gordhan, who was addressing the Investment Forum of the Association of Black Securities and Investment Professionals Student Chapter (ABSIP) at Wits University.

During the past year, the minister explained that South Africa’s GDP required a growth of seven percent to be able to really transform the overall economy. On Monday, the minister for a second time remarked that the South African economy simply cannot afford to grow somewhere between three and five percent.

“All of us need to develop a different model of growth,” he mentioned, adding the fact that this was at the same time necessary to tackle economic inequality.

 


“It truly is crucial to set in place the appropriate aspirations for South Africa as well as ensure that our economy ends up being globally competitive,” he explained to the two-day forum.

Investment was in fact of utmost importance for the purpose of economic growth and development, Gordhan suggested, adding the fact that the younger generation had a vital role to play.

“We have reached a phase in our development precisely where all of us need to make clear what we need to do,” he was quoted saying at the talks titled “Awakening Investment Potential.”

Gordhan explained that the modern world was in fact transforming and in addition beneficiaries should not necessarily simply be the elite. To be able to establish an environment for investment, a county’s savings at the same time performed a function, said the minister.

“The particular challenge is whether or not a country possesses a sufficient amount of savings … You will find significant imbalances of investment, savings and consumption. The real question is how you would rebalance. We now have a significant savings gap; we do not save adequate amounts in South Africa.”


Concerning the issue of “hot” capital inflows into South Africa, the minister explained these types of inflows had appreciated the local currency and in addition created a certain amount of instability.

There was clearly also a requirement to be able to develop an environment in which small business would most likely prosper.

Relating to the debate of nationalising the nation’s mines, Gordhan said: “It is simply not our policy as South Africa. We certainly have a vital contribution to make to develop the appropriate climate when it comes to economic growth. We will need to do what it requires to create the suitable confidence in our overall economy.”

Source: BuaNews, africa.ibtimes.com, bbc.co.uk

World Bank: African economy growing

Africa’s overall economy is without a doubt on the right track and may even come up with a quicker financial recovery from the recession when compared to the US. This is based on the World Bank’s Global Economic Prospects report for 2011.

The report, released in mid-January, forecasted that sub-Saharan Africa would most likely improve its gross domestic product (GDP) from 4.7% in 2010 to 5.3% for this year. That number might possibly be bumped upwards to 5.5% in 2012.

The report in particular mentioned that price levels in metals, minerals and oil, along with more significant investment in manufacturing and telecommunications companies, have definitely contributed towards the growth.


As indicated by Phumelele Mbiyo, Standard Bank’s Senior Africa Strategist for Global Market Research, the numbers suggest that economic activity, particularly in relation to mining and construction, is without a doubt growing in the region.

“The reason behind this type of increase is simply because prices for commodities are fairly high and they have enticed investment, in particular from emerging markets such as China,” he said.

Mbiyo is convinced an average person would most likely reap the benefits of these types of optimistic forecasts, as companies have the desire to seek the services of locals.


“There has already been increased employment of locals within the mining and construction industries. There is certainly destined to be a considerable amount of employment in future, primarily by European and American based companies who have invested heavily in mining in Africa.”

High continental growth

Having said that, the report pointed out the fact that the best growth rates were not necessarily to emerge from South Africa, the region’s traditional economic hub. Rather, the greatest figures originated from countries such as Nigeria, Angola, Kenya, the Republic of Congo, Ethiopia, Mozambique, Botswana, Zambia, Malawi, and Tanzania.

South Africa has been projected at 3.5% for 2011 in contrast to other countries from the other countries in the region were believed to grow at an average of 6.4% for the same year.


Mbiyo outlined that this is simply not for the reason that South Africa’s growth is slowing down, but instead for the reason that other countries are beginning completely new industries now not to mention coming from a low base whereas South Africa had already established exactly the same industrial sectors years ago.

“Angola is set to grow by 7% on average whereas Ghana will average 13% over the following two years. Simply because the latter is beginning to supply oil,” said Mbiyo.

He added that Africa should really at this time concentrate on sustaining growth mainly because the continent continue to lags behind other major developing and developed economies.

Source: mediaclubsouthafrica.com,

Business SA cautiously optimistic on 2011 economic outlook

Business Unity South Africa (BUSA) is cautiously optimistic with regards to the economic and business outlook for South Africa in the year ahead.

Despite the fact that financial and economic recovery this past year appears to have been moderate, and is also almost certainly going to fall short of the 3% expected growth rate, in spite of this it looks like the future economic prospects for South Africa local economy in 2011 are much better according to BUSA President Futhi Mtoba.

She has forcasted that South Africa’s overall economy could quite possibly expand by 3.5 percent to 4 percent the coming year, sparked by healthier growth forecasts and predictions for the global economic system, in combination with optimistic local economic trends and development.

BUSA President Futhi Mtoba

According to BUSA, interest rates are most likely going to continue to be low for the majority of 2011.

Even though unemployment will continue to be high, BUSA hopes and anticipates that next year will see the introduction of new net employment creation, albeit on a small scale. Overall, BUSA is convinced the SA economy and climate will most likely be more robust, more prominent and better next year.

BUSA also commented that the debate and discussions regarding the New Growth Path appeared to be an outstanding opportunity and chance for local business and organisations to be able to contribute to and give rise to the vision as well as its implementation.


Regardless of what ambitious higher growth path SA ultimately sets for itself, unfortunately it will never be attainable unless we are able to better address the gaps recognized in our economic performance and system. It is a collective problem, predicament and challenge.

In addition, in order to achieve the expected growth rate, each and every sector will, in addition,  need to take responsibility for its function in our society in these modern times and be held accountable for their actions. The debate and discussions, which will eventually take place in Nedlac and elsewhere on the government’s proposals and recommendations for a higher all inclusive job rich growth and development path for SA, should be informed by cogent along with relevant economic and financial realities.

Source: BuaNews, agbiz.co.za