Free trade and globalisation: Invest in #WhatSACanBe, IRR urges GNU

The Government of National Unity (GNU) must remove threats to property rights, ensure sustainable economic growth, and woo investors. So says the Institute of Race Relations (IRR), warning that the economy will not grow as long as the government insists on keeping the handbrake up.

This week, the IRR launches the third paper in its #WhatSACanBe series, Investment: Eliminate Barriers, Empower Job Creators. The key recommendations are that policies such as localisation and expropriation without compensation (EWC) must be scrapped, and foreign investors must be welcomed with open arms by the GNU.

At the core of the government’s current localisation agenda are multiple sectoral master plans which diminish South Africa’s commitment to economic growth and to the African Continental Free Trade Agreement (AfCFTA).

Localisation, higher tariffs and subsidies have all led to an uncompetitive economy which has stalled growth, and failed to upskill South Africans or create jobs. The IRR points out that economic conditions continue to scare off investors, for whom secure property rights and a balanced trade environment are the reassurances they need that their investments are safe.

The new Minister of Trade, Industry and Competition, Parks Tau, should scrap the master plans, which are a relic of yesteryear, and embrace freer trade, the IRR says.

Comments IRR researcher, Chris Patterson: “Free trade is the key to success and true economic freedom. The Government of National Unity cannot continue to pay lip service to economic growth and the wellbeing of South Africans without releasing the handbrake of localisation, tariffs and subsidies.”

The reforms South Africa must implement are not difficult, the IRR argues, but are essential to turning the country into a place that attracts investment rather than pushes it away.

The IRR stands ready to help South Africa through its #WhatSACanBe proposals, especially in promoting economic development and growth at home and across the continent.

The third paper in the #WhatSACanBe series can be read here.

Media contacts: Hermann Pretorius IRR Head of Strategic Communications Tel: 079 875 4290 Email: hermann@irr.org.za

Chris Patterson, Researcher Tel: 063 682 5035 Email: chrisp@irr.org.za

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za