Dear President Ramaphosa
Statements made to SANEF
Regarding your conversation with SANEF on 31 May 2020, TLU SA seeks clarity about your statements calling the heritage of our economy racist and colonialist. You owe it to South Africa to explain in detail what is meant by radical economic transformation.
Your statements exhibit a lack of knowledge in the workings of the economy. Maybe someone should teach the ANC Economy 101. The market powers work unabated, not asking questions about the history or race, but judges everyone by the way they accept responsibility for their future. It is a continuing process which evaluates each business, as well as our country, on how successful it is. It needs a healthy business model which instils trust and manages production factors to profit.
It is precisely these powers which pushed us down to junk status after just hearing about your radical economic transformation. Now you want to continue still and apply it!
Two of the most crucial production factors, namely the entrepreneur and capital, have already left the country in enormous numbers because of the ANC’s approach. This includes many black as well as white persons. The loss of expertise is immeasurable.
The policy environment, corruption and the issue of cadre deployment of the ANC and its alliance partners sank the South African economy. Your obsession with race forced experts out of the country and stopped them from playing an important role. Your race-based approach came to the fore during the COVID-19 lockdown.
If the world doesn’t call you out for your ridiculous statements, the markets definitely will. What our country needs is economic growth, Mr Ramaphosa. It is a continuous process tested against specific financial aspects. If you don’t do it, as the ANC has done for the past 25 years, and the markets will continue to evaluate you and find you lacking. South Africans now have to pay the price for your shortsightedness.
Wealth is not something that simply exists. You must continuously create it. Accepting the responsibility for one’s future is its base. You showed your inability to rule the country successfully, by playing the blame game and calling colonialism and racism (which you conveniently keep alive) the culprits, but it is the markets which find you lacking.
The ANC inherited profitable and stable institutions like Eskom, Denel, SAA and Spoornet. Because of your disastrous management of these institutions, they fell into bankruptcy one after the other.
You are busy creating your legacy every day. It is only fair, to be honest, and tell your followers how you are stealing the future from them.
The economy moved into junk status under your policy. People who should be creating job opportunities are leaving the country with their capital. Your tax base is getting smaller by the day. You’ve spent the money, but you still don’t know what is needed to offer your people a future. Handing our social grants cannot be sustained – you need money for that.
Acknowledge the principle of private ownership and let the free market do its job as effectively as possible. That is the starting point for creating wealth. Let go of your policy of transformation with words like BEE, land reform and expropriation without compensation. These are the things that destroy trust in our country.
The ANC tries to force commercial farmers from their land, based on lies about history. But, your department admitted that more than 90% of land transfers failed. Keeping that in mind, you will have to start concocting plans on how you intend to supply food. It is probably also a good idea to investigate where the products you use in the food parcels you hand out so generously, originates.
TLU SA wishes to unequivocally state the outcome for the country won’t be positive if the ANC continues down this road. South Africa will end up on the dump of failed African states. For us, the farmers who continued to build the future of our country, the slipstream to South Africa’s failure is a bitter pill to swallow.