The African National Congress (ANC) has targeted a 2.9% growth in the economy for 2017.
Eusebius McKaiser hosts economist and Nascence Advisory co-owner, Xhanti Payi, who looks at factors that might hinder this figure.
Payi says social cohesion is fundamental in the economy and a key contributing factor to economic growth.
If we had social cohesion we might have economic growth. If we have to think about economic growth, it’s about people being actively involved in the economy.— Xhanti Payi, economist and Nascence Advisory co-owner
What we have is a lot of exclusion and that’s what’s giving us problems. It’s not divorced from the idea that we don’t have social cohesion.— Xhanti Payi, economist and Nascence Advisory co-owner
We can’t grow if people don’t access and participate in the economy.— Xhanti Payi, economist and Nascence Advisory co-owner
Payi also touched on the importance of preparing for the economy's future.
He says the country could have avoided economic challenges such as drought and labour relations.
Drought is natural phenomenal which is fairly predictable. We didn't have the right kind of irrigation, water storage and right kind of stocks that can resist this kind of phenomena.— Xhanti Payi, economist and Nascence Advisory co-owner
It's not like we live in the early 1900s. There is a lot of technology, which means that in the next circle, now that we have been hit like this it should not happen again.— Xhanti Payi, economist and Nascence Advisory co-owner
Why is it that there was no strategy to say there will come a time where things will have to change, and they didn't prepare. Now we are in a state where labour relations are so sour, and it's keeping us back as the economy as part of the reasons why we are here.— Xhanti Payi, economist and Nascence Advisory co-owner
Listen to the full interview below...
This article first appeared on 702 : Economist looks at what's needed for growth in 2017