The meaning of the phrase "radical economic transformation" by Jacob Zuma and his acolytes is the subject of much debate. One commentator called it "just BEE on steroids", whereas Reserve Bank Governor Lesetja Kganyago was at a loss to give meaning to the phrase when asked to define it at a recent public lecture.
To investors the phrase is cause for concern. This was evident when Finance Minister Gigaba recently met with foreign investors who insisted on clarification on what the ANC meant by the phrase. Gigaba offered a mealy-mouthed explanation: inclusive growth "to create jobs, to address poverty, to address inequality".
The obvious question is whether investors bought Gigaba's explanation. No, as investors in emerging markets, notwithstanding higher rates of return on investment, are still guided by due diligence. They are aware of the ANC's increasing drumbeat of "white monopoly capital" that rides shotgun with calls for radical economic transformation. They are aware of the ANC government's predilection to play the race card to evade the real issues for the country's economic crisis: government incompetence, poor infrastructure, corruption, rampant unemployment, looting of state resources and rotten policies.
"White monopoly capital" is a convenient whipping boy for the ANC government to mislead the country that the WHITENESS of monopoly capital is to blame for its failures.
Investor confidence in South Africa is a thing of the past. Chances are confidence will be restored when the ruling party is a thing of the past.
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