Dr. Kenneth Creamer, Senior Lecturer at Wits School of Economics and Finance talks about the failure of the president to address the issues of unemployment in this country and economy.
in this country winner that theme stay with of the economy i'm joined on the line by dr kenneth creamer at wits senior lecturer school of economics and finance you for staying thank with us appreciate your time just to get your you know know that i don't we it was realistic to really expect the president to see more a whole lot especially given the context of this particular state of the nation address in any major terms of announcement relating to the economy so and on and so forth think i mean i most people would have more on wanted to hear what government plans to do aid the to state owned enterprises cause any plans any to try and strengthen the economy build the economy will cannot happen in with the current challenges that we have there with eskom and transnet is on he to thabiso so long time no c thank you very moved the opportunity much suffering from b late night first it was the bafana it bafana and then was the sona now you've got up early in the morning devoid ja no problem and your question is a good one because the speech was very long anyway much more he could know how of the have added in terms detail but listen carefully in that if you on the economy i think the the president signalled very clearly that he going to is continue implementing is quite radical reform that is undertaking in the energy space electricity space once in a generation reformed the taking place there we moving from a monopoly to a eskom much more modern electricity sector it's extremely painful i think we're very disappointed that even the latest our p's indicating it's going to take a few more years over this load to get shedding but hopefully that we beyond is right the worst we can hope so only and that all of of of these reforms of fixing eskom restructuring eskom well as as allowing space for private investment solar panels in possibly even the grid he indicated last night will just mean that the balance sheet not just of the capacity government but the the brains balance sheet of eskom the government and its foreign and domestic businesses can help to solve that problem so thank you listen carefully he has it is it a kind of trademark is of the ramaphosa that he presidency is slowly unfortunately but surely with electricity transforming sector can in the only way it be done as the implement action plan the energy of other things but so you know as an to be economist i looked very closely at one particular data not africa when we're affect all the others and the level of that investment in the economy you know so investment during the early nineteen ninety-four days of the democratic government inherited that a country people were not investing lost faith in no they've in the future investment and we saw rise by twenty-five percent of g p which d is pretty high might take and other chinese it to thirty percent percent of gdp by twenty-five it meant we were investing in our future and the jobs everything the unemployment is linked to that you're in your future not investing to have you know you're not going opportunities for people unfortunately since global crisis the since the state capture since covid totally collapsed investments on economy forty fell to about percent which is just it's partly maintaining the infrastructure that's what we're seeing that the k all around the infrastructure decay not investing we are enough in keeping the economy never man for the future but just going keeping it in the present so i think that would be the key thing watch can for us to these reforms that the president is is pushing for electricity and other areas can begin to build the confidence lift that of investment getting it back to twenty-five made up percent we of government investment state owned enterprise investment and private sector investment that's the target and i think we should be watching that so said just picking up on that that you're making point about investment in the economy the president did of course trumpet the that investment has been raised through will you know these give the one point five new trillion in investment commitments through the five south african investment conferences of which over five hundred as he said billion has already flowed into economy the are we seeing that are that we feeling in the economy yes you're right he has again it has been one of the the objectives of the this term of president cyril ramaphosa to try and mobilise that investment a lot of it still at the pledge stage and one point five trillion to see the tyre we need hitting the road it's amazon whether doing investments in this economy it's whether telling five g finally unlocked this blockage to the five g r auctioning spectrum so many blockages there's that have to be removed but there is a pledge to the unfortunate that but reality is that due to the like failing state capacity the weaknesses had weaknesses that we've in growth businesses attracted domestic to growth e business domestic business global business attracted they to growth because of the economy is growth in then there's made more profits to be so we need to convert those pledges one point five trillion sums if you do the i think our economy worth about six trillion you divide by four that's one point five ja that's get that what you need to the twenty-five percent but that about over he's talking a longer period not we need that every year twenty-five percent investment to the jobs create know we are creating job is employment now up at sixteen point seven million which is higher than it has been as the president but reflected in the sona are creating jobs we but not at the pace of you people coming to the mark you have this paradoxical so situation jobs where you creating but unemployment is rising the same time so that's why you have to lift it's through investment investment that you will be able to catch up pose again people schooling system leading the people who have being job for without a some time we finally up have some opportunity election but you know we in an mode all the politicians of the our making promises of are criticising each other elections are thinking and about it have got two possibilities this that can either be for the country really positive in election negative what can be you know and we as south i think we're gonna africans we want have to try and to be a democracy we a democracy are but we win it positive leads to renewal it a mandate of reform for these kind the mandate for good sound policy if it's bad it's we've seen in countries in advanced other countries have become very destabilising populist unsustainable policies and i'm hoping go down that we don't path with our upcoming election dr kenneth creamer senior lecturer in school of economics the wits and finance appreciate your thank you so insights much thanks so go much you just a little bit more to extract a bit a trying more out of what the president had to says can much as one really given the tone offered speech it was radio as six as should be expected as we should have expected a reflection the journey that over last has been travelled over the thirty years and of course the last five six years of his own presidency after eight sixteen breakfast