Pretoria - Although South Africa's economy is well into a modest recovery it must create an environment that is favourable to domestic and foreign investment, says Finance Minister Pravin Gordhan.
"The South African economy is well into modest recovery. Economic growth came in at 4.6 percent during the first quarter of this year and growth for the second quarter is expected to be at least 3 percent," said Gordhan on Thursday at the launch of the Land Bank's annual report.
What is crucial in South Africa, he said, is inclusive economic growth, growth that creates jobs, reduces poverty and creates opportunities especially for the youth. It also generates taxes with which public services like education are paid for.
"It is therefore important that we remain focused on getting South Africa's economy on a higher and much more sustainable growth trajectory. If we are to grow faster we must create an environment that is favourable to domestic and foreign investment," he said.
The cost of doing business in South Africa must be lowered while red tape must be cut while quality public services must be rendered to the public, the minister said.
"We must increase competition between firms, a serious challenge in South Africa; lower barriers to entry in the economy; support innovation and above all increase exports."
If South Africans are intent on a prosperous and sustainable future then the country should set its sights for growth at 7 percent a year over the next 20-30 years.
"All we've achieved is about 5 percent. How do we grow this economy at 7 percent over the next 20 to 30 years is a crucial challenge all of us face for the next year or so.
"We must also develop new ways of thinking about economic growth, and the role of the agricultural sector in economic growth, and the willingness to do things differently," said Gordhan.
