“We will restructure our economy and promote more small businesses. We need to have more entrepreneurs and find governmental and non-governmental ways to fund these entrepreneurs,” finance minister Pravin Gordhan told CNBC Europe.
“[However], recent numbers from Statistics South Africa that came out show that we have moved millions of our people out of poverty and the structure of our economy is still what it used to be,” he added.
The country’s growth prospects was recently revised down from 2.7 to 2.3 percent by the International Monetary Fund (IMF).
The IMF’s move was informed by labour unrest in the country’s platinum mines (Impala, Amplats and Lonmin mines) and policy uncertainty.
Strikes in the platinum mines are now in the 12th week having cost employers over 12 billion United States dollars in revenue.
The government also intends to invest more resources in vocational training so that more young people get skills and improve employability chances.
“The key is not about welfare but about ensuring that people can work and determine their future,” said Gordhan.
Endemic corruption remains one of South Africa’s socio-economic challenges.
Recently the country changed its procurement policy and put in place a central procurement system to curb corruption.
“We are still experiencing corruption just like any other country both in government and in the private sector. We have to ensure that we close more leakages and ensure the risk of being caught is severe”.
South Africa used to be the biggest economy in the continent until recently when Nigeria rebased its gross domestic product.
(WATCH MORE: Nigeria's economy has become the largest in Africa)
Nigeria's gross domestic product is estimated to be at 509 billion United States dollars while South Africa is at around 350 billion dollars.
Now in the second place, South Africa is facing multiple challenges among them is the unending strikes, corruption and competition for investors with Nigeria.
BY TRUST MATSILELE