Parliament, Friday, 24 November 2023 – The Portfolio Committee on Planning, Monitoring and Evaluation has welcomed the briefing it received today from the National Planning Commission (NPC) on the 10-year review of the National Development Plan (NDP) from 2012, when the NDP was adopted, to 2020.
In the meeting, the NPC was led by the Deputy Minister in the Presidency Ms Pinky Kekana, who presented the review’s findings on the economic, social and governance targets. She began by saying that when the NDP was adopted, its targets were based on the expectation that the economy would grow at a rate of 5.4%, which has not been achieved.
The NPC told the committee that the economy remains in a low-growth trap, with the rate of growth in gross domestic product at 1.1%. In addition, there is a high level of concentration in the economy, which creates barriers to new firms and small, micro and medium enterprises (SMMEs) from entering the market. Private investment has declined and unemployment has increased to 32.9% (8 million unemployed and some 3.6 million discouraged in their search for employment). This is compounded by a lack of energy security and an unreliable electricity supply, which is widely recognised as a major obstacle to growth.
The committee welcomed the briefing, describing it as honest and evidence-driven. During engagements, some members of the committee said they found the findings underwhelming and discouraging. Other members believe the government’s inability to reach the targets is a legacy of colonialism, which needs renewed efforts to overcome.
The NPC has proposed to government that a 3% economic growth rate would be sufficient to meet the NDP targets, when the 5.4% is impossible. The NPC also proposed that lasting solutions to the energy problems are urgently needed, as loadshedding is the greater cause of the decline in economic growth. The NPC also said that Eskom and Transnet are crucial for economic growth in South Africa.
The red tape that denies the development of SMMEs was also mentioned as a problem by the NCP. It called for their potential to be unlocked and partnerships promoted to ensure economic growth.
The Chairperson of the committee, Mr Qubudile Dyantyi, thanked the NPC for the briefing and for providing guidance to the government on the way forward with the NDP interventions. “We embrace the call to action by the NPC,” said Mr Dyantyi. He also called for action from government on the NPC’s proposals. The committee in the seventh Parliament will play a meaningful oversight role in this regard and add value to achieving the NDP vision, he concluded.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PLANNING, MONITORING AND EVALUATION, MR QUBUDILE DYANTYI.
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