S.Africa's NDP plagued by inconsistency - CNBC Africa

S.Africa's NDP plagued by inconsistency

Southern Africa

by Trust Matsilele 0

A housing development. PHOTO: Getty Images

Leon Louw, executive director of the Free Market Foundation (FMF) noted that the first phase has been more progressive while, the second phase experienced a downward spiral and reversal of the gains of the first 10 years.

(READ MORE: South Africa’s 2014 economic growth seen below potential)

“The last 20 years divides into 10-year periods. [In] the first 10-year period we had high growth investment and the economy on all internationnally published indexes. Halfway through, we turned around and started going down in virtually every index,” Louw told CNBC Africa.

Among the other indexes that were positive in the first 10 years were the economic freedom, political freedom, doing business, competitive and red tape indexes. However, the trends changed after the 52nd National Conference of the African National Congress (ANC) in Polokwane.

“After the Polokwane conference, the moderates lost traction and the radicals gained traction and now about half of the cabinet are members of the communist party. This has affected the direction of the country,” added Louw.

The 52nd ANC conference also saw the ousting of former South African president Thabo Mbeki, generally regarded as a proponent of pro-capitalists policies, being replaced by Jacob Zuma, who is viewed as pro-communist.


The current cabinet is being accused of being anti-capital and, consequently, undermining possibilities of investment into the economy.

The FMF has in the past launched constitutional court challenges on certain sections of the Labour Relations Act that extend agreements made in bargaining councils to non-member employers and employees.

Louw added that the current labour law has contributed to South Africa's unemployment figure almost doubling what it was during the great depression.