SoNA 2017: New Chapter Of Radical Economic Transformation

Radical economic transformation will be at the centre of government’s priorities for 2017, as the state seeks to overhaul the economic structure of the country for the benefit of all citizens. 

This was announced by President Jacob Zuma when he delivered his State of the Nation Address (SoNA) to a joint sitting of Parliament in Cape Town recently. 

“Today we are beginning a new chapter of radical transformation, the state will play a role in the economy to drive that transformation,” he said. 

His comments come at a time when the economy is not growing fast enough to create much-needed jobs in the country.

Government anticipates an economic growth rate of 1.3 percent in 2017. But unemployment remains a huge challenge, hence government’s Nine-Point Plan to reignite growth so the economy can create jobs, he said. 

The time had come for the state to move a step further to ensure an overhaul of the economic structure of the country for the benefit of all citizens - not just a few.

Fundamental change needed

There needs to be fundamental change in the structure, systems, institutions and patterns of ownership, management and control of the economy in favour of all South Africans, especially the poor, the majority of whom are African and female, he pointed out.

Of concern was that 22 years into democracy, the majority of black people were still economically disempowered.

“The gap between the annual average household incomes of African-headed households and their white counterparts remains shockingly huge. White households earn at least five times more than black households, according to Statistics SA.

“The situation with regard to the ownership of the economy also mirrors that of household incomes. Only 10 percent of the top 100 companies on the Johannesburg Stock Exchange are owned by black South Africans, directly achieved principally, through the black empowerment codes, according to the National Empowerment Fund,” President Zuma noted.