Latest news with #SouthAfricanInstituteofInternationalAffairs
The Citizen
09-05-2025
- Business
- The Citizen
Investors are partly to blame for SA's problems
Former EFF MP says 'wrong' investment decisions are causing unemployment, while Moeletsi Mbeki offers a different perspective. High levels of unemployment and inequality are the true causes of instability in SA, says Mbuyiseni Ndlozi. Picture: Siphiwe Sibeko/Reuters If SA's rich believe in this country's possibilities, they 'need to invest in sectors that can actually resolve unemployment'. This is the view of Mbuyiseni Ndlozi, former EFF member of parliament, and nowadays talk show host who spoke at the PSG Annual Conference on Thursday. 'The rich in South Africa need to be challenged,' he declared. Ndlozi and Moeletsi Mbeki, political economist and chair of the South African Institute of International Affairs (SAIIA), were invited to weigh in on political and economic reform in South Africa on the second day of the conference held in Johannesburg. In his speech, Mbeki reiterated his criticisms of the policies of the ANC, particularly black economic empowerment (BEE) and the creation of a bloated public sector. These policies, he argues, have led to the formation of a highly remunerated African middle class within the public sector. ALSO READ: What to consider when deciding to invest locally or offshore 'The other day, I saw a report from the International Monetary Fund from a study that our government commissioned. It said 17% of South Africa's GDP is preened off into the salaries of the public sector.' In similar countries in the world with the same level of development as South Africa, this figure is 6% to 7%, Mbeki notes. 'So, the owners and controllers of political power use their power to milk – if you wish – the rest of the economy. 'They turned the clock around – in the 20th Century, the capitalists exploited the non-profitable owners. Today, the non-profitable owners exploit the capitalists through the tax system.' This, according to Mbeki, is one of the 'characteristics' of South Africa – a tax system that transfers wealth from the productive finance sector to the public sector, 'primarily as compensation for those with political power'. ALSO READ: SA investors reel in local gains with legal offshore loophole 'Investors to blame' Ndlozi, on the other hand, notes that the size of South Africa's government wage bill has nothing to do with the fact that the economy is not creating jobs. 'It also has nothing to do with how much we tax capitalists.' The crux of the problem is 'deindustrialisation', which, according to him, has happened in the interest of 'financialisation'. 'Financialisation means you're not investing in the productive sectors of the economy. You're not building factories as capitalists.' He believes investors should therefore also take responsibility for South Africa's unemployment, inequality, and poverty. '[Unemployment] is the fault of the state and the investors. Their wrong investment decisions are responsible for this.' ALSO READ: Investing in 2025 after a year of local and global changes According to Ndlozi, there is a need for a shift in investment decision-making towards labour-intensive, product-based sectors of the economy. He referenced the policies of US President Donald Trump, who, according to Ndlozi, aims to redirect capitalists benefitting from cheap labour in Asia and 'force them through policies to invest in their own country'. 'Those with money should realise that their investment decisions over the last few years have not helped to solve unemployment.' Ndlozi also notes that SA's macroeconomic policies have not been hostile to business, and democracy has benefitted capitalists, making them wealthier than during apartheid. 'This democracy is not disruptive to capital.' He challenged the wealthy to change their investment attitudes and invest in sectors that can resolve unemployment. 'You'll want to live in a country where the majority of the population has jobs. That [employment] will reduce crime. In the townships in particular, there's too much idleness, which leads to despondency, especially among the youth, and all kinds of toxic behaviour arise from that.' ALSO READ: The single worst investment on the JSE Ndlozi dismisses the argument that businesses need a 'stable country' before investing. 'South Africa is stable. We have democratic elections. In fact, there are 16 by-elections taking place next week Wednesday [14 May]. You have people who accept electoral outcomes, and you have a new government where the ruling party lost power and agreed to share it. 'That is political stability.' According to Ndlozi, the high levels of unemployment and inequality are the true causes of instability, which he attributes to the 'poor investment decisions' of those with money. 'The market didn't create the jobs. They had all the leeway, but didn't.' This article was republished from Moneyweb. Read the original here.
Zawya
02-04-2025
- Politics
- Zawya
Young leaders' voices amplified at a Youth & G20 capacity-building workshop in South Africa
In 2025, South Africa holds the G20 presidency, with world leaders scheduled to convene later in the year to discuss priorities under the theme: 'Solidarity, Equality, Sustainability.' On 27-28 February 2025, UN Women South Africa Multi-Country Office and the South African Institute of International Affairs youth division (Youth@SAIIA) organized the Youth and G20 workshop titled 'Bridging the Gap for Global Impact' in Johannesburg. Bringing together 150 passionate young leaders from high schools and universities, the workshop, supported by the Irish government, targeted 18–25-year-olds, providing them with tools for effectively engaging decision-makers on shaping a more inclusive future. On the first day of the workshop, the focus was on unpacking gender equality in the context of the G20 and its application to Y20. A panel discussion on gender advocacy enabled participants to identify key gender issues and develop advocacy strategies and actions for promoting gender equality. UN Women South Africa-Multi Country Office Representative Aleta Miller delivered the keynote address, emphasizing the importance of discussing issues affecting the future. "There is a critical need for conversations around the global events that affect the future—conversations that can change the status quo and promote the inclusion of women, girls, and youth," Miller stated, highlighting the significance of platforms like the workshop. The workshop participants received capacity-building training during the second day. Strategic communication and digital engagement combined with drafting and presenting national action plans on policy made up the training agenda. "A significant number of Africa's population is youth, which means they're going to take on how policy is developed, what the political landscape looks like, what the economic landscape looks like, and even social policies. It's very important that when youth are in those spaces they are sufficiently capacitated to engage with such issues and not just come in sort of blindsided. Youth are not just the leaders of tomorrow, they are the leaders of today,' said Neo Mofokeng, Programme Analyst for Generation Equality, at UN Women South Africa Multi-Country office. The Young Leaders' Declaration emerged from this workshop as a final product which featured five fundamental recommendations. These include increased youth employment, universal healthcare access, standardized education, gender-inclusive governance, and climate justice measures. The document, delivered to the National Youth Development Agency (NYDA) during the closing ceremony at the South African Institute of International Affairs, represents young leaders' commitment to driving transformative change through concrete policy proposals. The conference resonated deeply with attendees like Seipone Soteti (18) and Dimpho Mudika (18), first-year students at Wits University. 'For a long time, I felt like I couldn't fill the shoes of the opportunities given to me,' Seipone shared. 'But sometimes, you have to do things even when you're scared.' Dimpho echoed this sentiment, recognizing the value of exposure: 'You can't work towards something if you don't understand the world you live in.' Both highlighted the importance of youth voices in shaping decisions, especially in education. 'Older generations shouldn't decide our future. 'We should be shaping it ourselves,' Seipone said. Distributed by APO Group on behalf of UN Women - Africa.
Voice of America
21-02-2025
- Politics
- Voice of America
'Lack of consensus' as G20 meets amid turbulent times
The two-day Group of 20 foreign ministers meeting wrapped up in Johannesburg on Friday. Aimed at addressing global problems, the talks between the world's wealthiest countries instead underscored the fault lines in the current geopolitical climate. Despite the warm welcome foreign dignitaries received at the meeting in Johannesburg, hosted by current G20 president South Africa, tensions were apparent before the event even got underway. U.S. Secretary of State Marco Rubio announced earlier this month he was boycotting the meeting, citing what he called the 'anti-Americanism' on the agenda. These topics included climate change and equality for developing nations. South African President Cyril Ramaphosa addressed the discord head on in his opening speech, saying the world was under threat from rising intolerance and wars. 'Yet there is a lack of consensus among major powers, including the G20, on how to respond to these issues of global significance,' Ramaphosa said. Even a planned group photo fell through, though no official explanation was given for its last-minute cancellation. Steven Gruzd, an analyst at the South African Institute of International Affairs, spoke about the challenges the meeting presented. 'South Africa's had a very difficult job of getting countries that are ideologically very far apart around the same table,' he said. South Africa has been under fire from the new U.S. administration, which accuses the government of land grabs, an accusation South Africa strongly denies. President Donald Trump recently cut financial assistance to the country over the allegations. Washington sent U.S. Embassy Charge d'Affaires Dana Brown in Rubio's place. The embassy declined VOA's request for an interview. But there were statements of support for South Africa leading the G20 from several European foreign ministers. Russia and China also sent their top envoys. In his remarks at the meeting, Chinese Foreign Minister Wang Yi expressed his support for South Africa's G20 presidency. He also noted that, 'the current international landscape is marked by transformation and turbulence.' He added, China will 'work with all parties' on world peace, security and multilateralism. One topic that dominated at the meeting was Ukraine. The foreign ministers gathered days after Trump upended U.S. policy on the war, suggesting Ukraine was to blame for Russia's 2022 invasion and labeling one-time U.S. ally Volodymyr Zelenskyy as a 'dictator.' Retired U.S. diplomat Brooks Spector said, 'Now that President Trump has effectively ended the general Western consensus on Ukraine, it's obviously fallen to the European nations to be the primary source of support for Ukraine and its president and in fact its struggle against Russia.' The E.U. has indeed rallied in support of Zelenskyy after Trump's comments. French Foreign Minister Jean-Noel Barrot, speaking on the sidelines of the meeting, voiced his concerns. 'A capitulation of Ukraine today would set a terrible example for every country in the world that would be under the threat of predation by its bigger neighbor,' he said. 'Is this the world in which we want to live?' However, in his closing remarks South African foreign minister Ronald Lamola put a positive spin on things, saying the meeting had been an overall success and delegates had held "productive" talks.
