Moeletsi Mbeki: Political elites are 'milking' the economy

He suggests that the power of the ruling middle class must be diluted by the poor, the working class and property owners

- Lyse Comins

Speaking at a Xubera Institute for Research and Development forum near Durban, Moeletsi Mbeki has honed in on the reasons behind a crisis illustrated by an economy limping along with just 0.1% growth during the first quarter of this year and a 32.9% unemployment rate.

Mbeki has often criticised the government, including under the presidency of his brother Thabo Mbeki.

“South Africa has one problem — and please don't listen to Donald Trump. Our problem is the economy,” Mbeki said, alluding to the recent slamming of South African policies by the US president.

Mbeki highlighted the minerals sector as a stark illustration of the economy's systemic failure. Given that minerals account for 60% of South Africa's exports, the ongoing war between the Minerals Council, representing major producers, and Mineral Resources Minister Gwede Mantashe showed a self-destructive pattern of political interference that threatened the nation's economic lifeline, Mbeki warned.

“Why is the minister of mines fighting the mining industry instead of working with the mining industry?” he asked, referring to the dispute that started with a review of the 2018 Mining Charter, which aims to strengthen black economic empowerment in the sector.

Mbeki traced the roots of the current economic crisis to the country's fundamental power shift to democracy on 27 April 1994.

“Before that date, political power rested with property owners — the owners of mines, banks and supermarkets. What happened was a transfer of political power from people who owned property to people who don't own assets,” he said.

“The new rulers don't have land, don't have mines, don't have banks, don't have shops. So what do they live off? They live off the state.”