ANC delegates gather: No vote on Zuma – pet projects to get plenty airtime

South Africa’s ruling political party has a lot to consider when delegates for the ANC’s conference policy gather in Midrand tomorrow. They are expected to have read and absorbed numerous discussion documents whose suggestions range from eminently sensible through to naively idealistic. The ANC has a proud record of respectful discussion and engagement before reaching consensus. With prickly issues on the agenda, like the proposed nuclear build and a faltering economy, the movement will be drawing on all of its historic qualities of open, honest and vigorous discussion if it is to emerge with a fresh blueprint for progress. One an increasingly polarised nation and contracting economy so desperately needs. – Alec Hogg

By Mike Cohen

(Bloomberg) — South Africa’s plans on everything from nuclear power to how to spark growth in an anaemic economy fall under the spotlight at a ruling African National Conference policy conference starting Thursday.

The ANC has been in power since South Africa’s first multiracial elections in 1994 and won 62 percent of the vote last year. While the election of the party’s leadership isn’t up for debate — that will only happen at its next national conference in 2017 — delegates may agree to allow officials to openly campaign for posts, lobbying the party currently discourages.

President of South Africa Jacob Zuma sticks out his tongue after as he addressed attendees during the 70th session of the United Nations General Assembly at the U.N. headquarters in New York, September 28, 2015. REUTERS/Carlo Allegri
President of South Africa Jacob Zuma sticks out his tongue after as he addressed attendees during the 70th session of the United Nations General Assembly at the U.N. headquarters in New York, September 28, 2015. REUTERS/Carlo Allegri

Debate at the Oct. 8-11 conference, which takes place in Midrand near Johannesburg mid-way through the party’s five-year electoral term, will focus on 213 pages of discussion documents drafted by ANC officials.

Here are the key economic issues on the table:

Bolstering growth

While President Jacob Zuma’s government is targeting 5 percent growth by 2019, Africa’s most-industrialized economy contracted an annualized 1.3 percent in the second quarter, as energy shortages constrained output. The ANC’s proposals to improve the economy’s competitiveness and encourage local manufacturing include containing power-price increases, reducing port and freight subsidies for commodity exporters, improving telecommunications infrastructure, expanding the tourism industry and reducing the volatility of the rand.

Tackling the Energy Deficit

A decade of under-investment in new power plants has led to managed blackouts and has deterred investment. The ANC wants South Africa to consider increasing its use of gas and hydropower, which if necessary should be imported from the region. The party is wary that the state’s plans to build new nuclear plants that will generate 9,600 megawatts of power may be unaffordable, and says any investment must be preceded by “a full, transparent and thorough cost-benefit analysis.”

More from Mining

The ANC is intent on ensuring the country derives greater benefit from its mineral resources. Its proposals include implementing a resource-rent tax and mineral-export taxes to encourage local processing. It also wants to explore establishing a local metals exchange that would make price-setting more effective and assist in tax collection. The ANC backs the government’s plans to draft stand-alone laws to regulate the oil and gas sector to encourage development of the fledgling industry and ensure the state secures a free stake in all new projects.

Black empowerment

The ANC says South Africa’s white minority still wields disproportionate control over the economy 21 years after the end of apartheid. The party’s proposals include securing state support for black industrialists and entrepreneurs, encouraging businesses to give stakes in the companies to workers and encouraging state entities to buy more from black-owned businesses.

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