ANC national policy conference: Here's what's on the economic agenda

The ruling African National Congress (ANC) has kicked off its national policy conference, with a strong focus on reviving the stagnant economy in South Africa. The party's Head of Economic Transformation Committee, Minister Mmamoloko Kubayi, outlined the key themes and points of discussion at the conference in a recent interview with CNBC Africa. The conference aims to address critical issues such as fiscal and monetary policies, the implementation of a basic income grant, and the foreign ownership of the South African Reserve Bank. Minister Kubayi highlighted the importance of consolidating views from various party structures and branches to develop a final document that will be adopted at the national conference. One of the central topics of discussion is the macroeconomic policy, with a focus on ensuring that fiscal and monetary policies are people-centered and aligned with the goal of addressing poverty, unemployment, and inequality. The ANC is also considering the question of the Reserve Bank's mandate and ownership. While there have been discussions on the need to broaden the Bank's mandate to include issues such as employment and small and medium enterprises, Minister Kubayi emphasized the importance of maintaining inflation targeting to prevent economic instability. A key proposal on the table is the introduction of a basic income grant to address poverty in South Africa. However, Minister Kubayi emphasized the need to carefully consider the funding mechanism for such a grant to avoid undue burden on the poor and middle class. The ANC is exploring options such as a wealth tax to finance the grant. When it comes to fiscal policy, some party members have expressed concerns about the focus on debt repayment and the impact on development. Minister Kubayi clarified that the government's reprioritization efforts have been aimed at redirecting funds to areas of pressing need, such as during the COVID-19 pandemic. Regarding monetary policy, discussions include the ownership of the Reserve Bank and the potential widening of its mandate. Minister Kubayi mentioned the importance of evidence-based discussions on transitioning Reserve Bank ownership from private to public, citing examples from other countries. The ANC is cautious about making significant changes to monetary policy that could lead to high inflation and economic instability. As the ANC continues its policy conference, delegates will engage in robust discussions to determine the best path forward for South Africa's economic recovery. The party is committed to implementing policies that prioritize the well-being of its citizens while ensuring long-term economic stability and growth.