Ramaphosa on trade, corruption, and the plan to bridge the gap between black and white South Africans



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President Cyril Ramaphosa has responded on a number of key issues facing the country, including the introduction of the African Continental Free Trade Area and the inequality divide between black and white South Africans.

In a parliamentary question-and-answer session on Thursday (November 12), the president was also questioned again about allegations of corruption that have continued to haunt the government.

Their key answers are described in more detail below.


Reduce the gap

Ramaphosa was asked to respond to the recent protests at Senekal and Brackenfell High School and what appears to be increasing polarization across the country.

The president said that racial divisions are still found in:

  • The structure of the economy;
  • The distribution of skills;
  • Land and other assets;
  • Access to services;
  • The spatial design of cities, towns and rural areas.

“Our task now, not only as a government, but as a society in general, is to act together to end all forms of racism, racial division and racial inequality,” he said.

“We need to constantly confront racist attitudes and condemn all cases of racist behavior. Those who want to perpetuate racial tensions should know that they are in a dwindling minority. “

Ramaphosa said the government continues to reduce material inequality between black and white South Africans through its policies and programs, just as it wants to address the differences between men and women.

“From the provision of free basic services to the construction of houses, from the improvement of public transport to the provision of social support, from free schools to free tertiary education for the poor, we follow a policy of progressive redistribution.

“It is this goal of reducing inequality that informs our approach to National Health Insurance, the development of rural and municipal economies, the accelerated redistribution of land and our support for black industrialists.”

Ramaphosa said that by advancing in these areas, increasing investment levels and creating jobs on a much larger scale, the country will steadily reduce the material differences between black and white South Africans.

“In doing so, we will improve the conditions for lasting reconciliation and unity in our country. This is a task that this government is committed to, and to which the vast majority of South Africans, black and white, are committed, ”he said.


African continental free trade zone

Ramaphosa also responded about the African Continental Free Trade Area (AfCFTA) and what the new development will mean for the local economy.

Scheduled for introduction in 2021, the AfCFTA is a flagship project of the African Union and aims to build an integrated market in Africa that will see a group of more than 1 billion people with a combined GDP of approximately $ 3.3 trillion.

Ramaphosa said that across the trade area, the continent’s leaders are determined to build strong and inclusive economies through industrialization and the benefit of minerals and raw materials.

“The AfCFTA is a significant advance that will change trade patterns and has the potential to transform African economies.

“It will promote economic diversification, the benefit of our minerals and resources and the addition of value to take advantage of the opportunities that arise from an increasingly open African continental market.

“We expect that in the new year, 2021, preferential trade in Africa will start with significant product coverage and expand further in the next few years,” he said.

Ramaphosa said that even before the AfCFTA agreement, South Africa had already started implementing an investment-based business strategy.

He said that the country has sought to use its foreign direct investment abroad in the rest of the continent to promote balanced growth and localization.

Between 2014 and 2018, South African companies invested more than $ 10 billion, around R160 billion, in different parts of the continent. This has made South Africa the fifth largest source of foreign direct investment in value on the continent, behind the United States, France, the United Kingdom and China.

“The government has been working to prepare South African-based companies for participation in the AfCFTA,” he said.

“We want to ensure that our businesses, entrepreneurs, small businesses and workers benefit from the business opportunities that will arise when the AfCFTA begins operations.”


Corruption

The president also responded about his government’s fight against corruption and the key institutions that tackle corruption in the country.

He said the fight against corruption and state capture has required “extensive measures” to stabilize and revitalize law enforcement agencies.

“A lot of work has gone into ensuring that these agencies have the staff, skills and resources they need to carry out the demanding tasks of successfully detecting, investigating and prosecuting corruption cases.”

The president said that since the beginning of his administration, the Hawks have established task forces to expedite corruption investigations in municipalities, the government and the private sector.

Together with the National Tax Authority, the Hawks have prioritized 10 priority corruption-related cases to expedite investigation and prosecution, he said.

“To enable the leadership to tackle complex and organized corruption, staff from the South African Police Service, the Hawks and the Independent Police Investigation Directorate (IPID) have been assigned.

“As further evidence of enhanced cooperation, the investigation directorate has also obtained forensic accountants and legal resources from SARS, SIU, FIC, Reserve Bank and the State Security Agency.”

The president said that recent amendments to the State Capture Commission regulations now allow the commission to share information, records and documents directly with the Directorate of Investigation and any other law enforcement agency in South Africa.

“Beyond the work of law enforcement agencies, the fight against state capture and corruption has also been undertaken in some of the state companies,” he said.

“As a result, various matters have been referred to the NPA for possible criminal prosecution and to the SIU for investigation.”

The president said that much of the last two years has been focused on strengthening the capacities of the institutions on which the country depends to combat corruption and state capture.

“There has been clear evidence of progress in bringing cases to court. The work is in progress. “


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