Wednesday, February 06, 2019



Floyd Shivambu 

The pitiful attempt by Rebecca Davis to give a critique of the EFF’s Election Manifesto is lousy, yet we we will provide a clear response to what quite frankly is claptrap disguised as analysis. The EFF welcomes and encourages engagements including disagreements with the commitments on what people said should be our plan of action when we takeover government after 2019 elections. The despicable attempt to vulgarize the wishes of the people, which they raised publicly in community meetings, letters, emails, messages and through the experience of EFF representatives in legislatures, must be called what it is, nonsense!

Rebecca Davis claims that the EFF has broken with the unspoken social contract of opposition parties’ approach of reasonable response about the policy pledges they present before elections. She goes further to make an absurd claim that the manifesto ‘is filled with unforgivably vague pledges, sketching the picture of a healthy, educated, employed and happy South Africa zipping along 10% economic growth with no plausible details as to how this can actually be accomplished’. She accuses the manifesto of being a dishonest document. But in reality, she is the one who is being dishonest because the people’s manifesto and a clear detail plan of action has details such that it is the first of its kind, something even Davis has not seen in a manifesto. She’s blinded by class and possibly racist prejudices which seek to provide a critique before she reads and understands. 

Firstly, the EFF is unequal that we were not part of the 1994 elite pact, and not signatory of the CODESA compromise that handed over political power to black people, yet solidified unequal propert relations between white and black people. For us to continue with the tradition of political parties to approach election with the so called cautious policy commitments would be to continue with the postponement of our people’s true liberation. The EFF Manifesto emphasizes the NOW! because we are a different generation, with new demands which will not be postponed. We want our land and jobs NOW! Secondly, the inability to see millions of South Africans, who in the main are young and black, healthy, educated and employed like it is the case with most European developed nations in a plan of action from a five-year-old organization led by young black intelligentsia reflects Davis’s own bigotry.

On agrarian reform

Agrarian reform is the cornerstone of our agrarian vision of promoting and protecting local agricultural industry. The thrust of the EFF’s vision is that the country must only import food products that we practically cannot produce, to supplement what is locally produced. In essence, our aim is to maximally use all arable land for food production, with the aim of building adequate capacity to fully feed ourselves. On basic food products that are essential yet with ecological litigations in terms of production capacity, we should explore the rising agricultural technology with the aim of producing enough to feed ourselves. This is important for two reasons:
Firstly, our country’s agricultural sector is a constricted sector, controlled by only a tiny minority of players. As a result, many commercially oriented small-scale farmers are kept outside of the mainstream markets for agriculture. The EFF government commits to developing alternative markets for these growers, by obliging the State to buy from small scale farmers for their consumption needs (food for schools, hospitals, clinics prisons etc). Whatever is produced by small scale farmers must find a market, and the State must buy 100% of its food requirements from local small-scale producers, except for products that cannot be produced in the country. 

Secondly, since the deregulation and liberalisation of agricultural trade in South Africa, from the late 1970’s, but intensified by the ANC after 1994, we have observed a rapid reduction of active participants in agriculture, and a reduction in production. This is made manifest by real reduction in the number of commercial farms registered for tax purposes, from about 90 000 in 1971, to just over 60 000 in 1991, 45 000 in 2002 and to about 35 000 by 2016. Some of these farms were consolidated into single, bigger family farms, some struggled to such an extent that they were bought by bigger, more capitalised farmers who easily integrated into the global agricultural value chain.

Trade liberalisation also had an impact on the volume of food produced and consumed in the country. The percentage of imported wheat increased from 20% in 2007 to about 60% by 2007, while at the same time local production was reduced by about 54%. So, imported wheat dislodged local production of wheat. It is as a result of these dynamics that some academics have argued that South African agriculture is the “least protected agricultural sector in the world”. The EFF argues that this is not the way to develop agriculture and catalyse rural job creation, therefore, we will through tariff and non-tariff measures promote the rejuvenation of local agriculture. It’s not rocket science, it’s a basic and pragmatic programme of action, one anyone with a juvenile understanding of the country’s agrarian economy will understand, but it is clearly way above her comprehension.

One jobs

On “One Degree, One Job”, Davis radically misses the point and based on some incoherent out of context scenario courageously demonstrate her ignorance when she says the EFF will need to guarantee 13 million jobs. What she does not say is that the EFF manifesto specifically says the EFF government commits to absorbing all unemployed graduates and place them into areas relevant to their qualifications. The 13 million figure she cites is a number of mostly children who are in primary and secondary school. While our long term objectives include absorption of all learners into quality post secondary education and training, the commitment about “One Degree, One Job” seek to immediately absorb those with qualifications now into full time employment and with the gradual abolition of tenders, such is possible.

Furthermore, an impression is given that it is all graduate that will depend on government for employment as if private sector will stop employing graduates. Currently, according to Stats SA latest Quarterly Labour Force Survey (QLFS), 6.4% or 504 000 of graduates are unemployed, and not all of them have degrees. The EFF intends to abolish tenders and make it compulsory for all spheres of government to directly provide services in areas that are inherent functions of the state. The expansion and capacitation of state, including retaining ownership of all state-owned companies and entities, have the capability to absorb all unemployed graduates, a coherent articulation linked with state capacity which in her vilifying state ownership and intervention, she clutches on unintelligible conclusions and misses the link. So Davis developed an illusion and critised the imagination as if it’s EFF policy. We forgive her ignorance. 

On basic education

Davis proceed to claim other significant factors related to teacher morale and training, administrative problem and the contention SADTU together with inadequate infrastructure which plays a role on the poor quality of education as if the EFF manifesto does not concretely address these issues. 

Firstly, the teacher morale and training challenges facing South Africa’s education are not inherent to the system. One of the challenges crippling public services, including education sector, is the decline in real value of public servants’ salaries in particular teachers, police officials, solders and general workers while the senior government officials’ salaries have increased drastically matching those of private sector. The EFF government will review and upgrade the salaries of teachers to start addressing some of the challenges. But also, to address the issues of morale, the EFF government will launch a yearlong #TeachersMatter campaign, starting in 2020, to look at both professional and personal needs of teachers, including training in soft skills, emotional wellness, financial literacy, assistance with debt management etc. a clear and practical program of action. 

Secondly, she nit-picks the point about the appointment of one orthodontist per school, which she ridicules insinuating that it is unnecessary and we don’t have enough through a misguided out of context linear calculation. What the EFF manifesto emphasizes is the need to have an orthodontist allocated to each school. This does not mean that we will have one orthodontist in each school present every day of the week. What we actually mean is to have each school allocated an orthodontist, but this orthodontics may be responsible for many schools in particular districts, region or province given the available resources. Clearly this is a level of sophistication and imagination which Davis does not have. It is practical to have one orthodontist responsible for 10 schools or even more depending on the dental challenges of children in schools. 

On fee free education

Davis elevates the World Bank right-wing economic approach of income-contingent loans instead of free fee quality higher education which include free accommodation, two free meals a day, free transport and laptop while increasing funding for research. As the EFF, we have consistently criticized the government of relying on National Student Financial Aid Scheme (NSFAS), which has been badly managed instead of resolving the higher education and vocational training funding crisis. 

Fee free higher education for all deserving students is affordable through proper prioritization. What is required is political will and a commitment to introduce free quality education for all. We make a proposal of 2% of total company revenue education and training taxes in addition to skills levy as one of the means to fund fee-free quality education, proposal which Davis ignore completely asking where the EFF will find money as if we did not provide a clear fiscal framework. She possibly did not see this funding model because added to the budget directly appropriated for the department of higher education, NSFAS, and the 2% education tax, there will be enough resources for all students to gain access to quality fee free higher education.

On social grants

Davis makes another incoherent conclusion that if there was money available to dramatically increase social grants, you can be pretty sure that the ANC government would be doing so. She says this as if she has been absent from the country when BOSASA former executive were giving evidence of grand scale looting, Gupta industrial scale thieving and the current theft that is taking place at Eskom through Independent Power Producers (IPPs) is not a demonstration that the money is there but the problem is the ANC. 

Davis further turns a blind eye on the EFF’s Fiscal Framework Chapter in the Manifesto which commits to maximal tax collection and dealing decisively with illicit financial flows, base erosion, and profit shifting. She obviously had not read the part that introduces a long term financing structure for infrastructure in order to lesson the fiscal burden on short term but impactful funding needs such as social assistance programmes.

Given that we come from a very low baseline, the EFF government will double social grants. Social grants have demonstrated that they have the potential to be an immediate solution to poverty in the short term, and can ignite some degree of heightened local economic activity. The money that is wasted in corruption irregular expenditure and maladministration will be redirected to social grants. In addition, the overhaul of the fiscal framework will also expand allow for expansion of social services broadly. 

Additionally, the EFF’s cogent jobs plan will mean that the number of social grants recipients will drastically decline, so the calculation that is based on the current unemployment crisis misses the point.

On Sovereign Wealth Fund

Again, Davis makes another mistake of mixing issues pretending to understand the context in which a sovereign wealth fund (SWF) is created when clearly, she is clueless. In the past, we offered a comprehensive perspective which we demonstrated that for a country that is rich in mineral resources, SWF will be a dynamic, important instrument and mechanism to save and redistribute wealth. Countries like Norway, China, Singapore through multipronged state-led development, have successfully build some of the strongest SWFs within a similar context which we are proposing considering South Africa’s distinctive characteristics. We said a South African SWF should be established with the following features:

a. Relative autonomy from political micromanagement,
b. Account to Parliament,
c. Only 15% of gross profits should be deposited into national revenue fund
d. A combination of shareholders including state-owned companies.
e. And, an investment policy which brings about a delicate balance of asset management and private equity.

A SWF is not the same as Foreign Direct Investment, and clearly there is conceptual confusion in Davis’ critique of the EFF’s position. The SWF will fill the void of domestic investments in the productive economic sectors, because FDI has largely invested in speculative and non Labour absorptive capital.

These are the details contained in the EFF plan of action and commitments to our people. However, individuals like Davis, who write some dishonest drivel make it their mission to misunderstand the EFF so that they can spread lies, slander, gossip and pure caricature of what the economic emancipation movement stands for. These individuals and groups are often blinded by racial and class prejudices and choose to drown in ignorance even in the face of superior logic. 

EFF supports, members and ground forces are correct to be inspired by their own voices which have been captured with such clarity. After all, it is the people’s manifesto. At best, it is a cogent and clear program of action. The doomsayers and reactionaries will shout from the sidelines, but in the EFF, we know that for privileged groups, calls for equality sometimes sound like calls for oppression.
We will never retreat nor surrender. Down with reactionary and shallow criticisms Down! 

Floyd Shivambu is EFF Deputy President 

Tuesday, February 05, 2019



Floyd Shivambu 

One of the biggest failures of  the post 1994 Government has been the inability to create jobs, in particular for able, willing and young people. South Africa has more than 22.6 million people who can work, of which 16.4 million are employed and 6.2 million are unemployed. These figures do not include the more than 2 million people who looked for work, could not find work and now they have given up in looking. In expanded definition, which is the real definition, close to nine million South Africans are jobless. All aspects and sectors of the EFF 2019 manifesto have jobs dividend, and this article only focuses on the industrialisation and procurement jobs plan contained in the Manifesto.

Historically and currently, the most effective way to create jobs is to build sustainable industries to produce things that people consume on a daily basis and involve people in all stages of production. South Africas semi-colonial character has positioned the country to be the importer of almost all finished goods, products and services, and exporter of natural, and semi-processed products. The domestic consumption of goods and services therefore create and sustain jobs of many people in China, Vietnam, South Korea, Europe and America. It is not Gods instruction that all cars, electronics and textile used by South Africans should come from the oceans. The massive and almost complete importation of finished goods and products is man-made and the EFF carry the political and ideological will to fundamentally change that. 

The post 1994 Governments industrial policy has failed drastically because the kind of industrialisation pursued was not the kind of inward industrialisation needed to build sustainable Labour absorptive factories for production of daily consumables. This failure was made worse by the fact that the movement of investors money that come to South Africa was less regulated and shaped, as a result a larger component of foreign capital in our country came in as speculative capital, which do not have the much-needed jobs dividend. 

The failure of the ANC led Government can be seen by the fact that in the last 25 years, only five special economic zones i.e. Coega, Richards Bay, East London, Saldanha Bay and Dube Port are functional. The direct state investment in the SEZ for the entire 25 years is around R10 billion, and thats insignificant for a country that expends more than R150 billion on social assistance annually. Just under 14 000 jobs has been created by the SEZs, which if massively expanded, protected and supported could end SAs socio-Economic crisis of joblessness. 

As an interim measure of poverty alleviation, social grants are a progressive intervention, but can not and should not be a permanent solution to South Africas developmental, poverty, and inequality challenges. Social assistance programmes must be accompanied by an equally aggressive Labour absorptive industrialisation, and this is the argument contained in the EFFs Founding Manifesto and clearly located in the 2019 General Elections Manifesto. 

Firstly, to create sustainable jobs, the EFF industrial policy will focus on inward industrialization with export capacity. The policy of inward industrialisation will also aim to depopulate high density populated cities such as Johannesburg, Durban and Cape Town through creation of Labour absorptive industries in parts that have not realized any form of economic development since time immemorial. 

To achieve this, the EFF government will declare zero company taxes in multiple special economic zones in various regions in South Africa, starting with 35 areas and the whole of Northern Cape Province. The multiple special economic zones will gain special economic zones benefits such as tax incentives and factory building allowance. The non-negotiable and legislated basis of each company gaining access the SEZ benefits will be employment of a minimum of 2000 workers per company per investment area. 

As the EFF we studied areas that have immense potential either informed by historical infrastructure, market and resources to identify viable special economic zones. Some of the special economic zones will be declared in Qwaqwa and Thabanchu in the Free State, Butterworth and Mbizana in Eastern Cape, Bushbuck Ridge and Enyibe in Mpumalanga, Shayandima and Groblersdal in Limpopo, Kagisano and Moses Kotane in North West, uMhlabuyalingana and Maphumulo in Kwazulu-Natal, Cape Agulhas and Beaufort West in Western Cape amongst others. 

Any investor who can commit to a minimum of 2 000 sustainable jobs, pay employees a minimum wage and employee benefits will have access to these multiple special economic zones benefits. The EFF government will spend a minimum of R100 billion annually in pursuit of massive inward industrialisation. An emphasis is placed here that the form of inward industrialisation we will pursue will not be the same as the one of many post-colonial societies, which substituted imports with inferior domestic products. The inward industrialisation pursued by the EFF will necessarily have maximum quality controls with export capacity. 

The underpinning belief of the EFF industrialization policy is creation of jobs and any investment must clearly demonstrate commitments to jobs to access special economic zones. These tax free multiple economic zones alone have the potential to generate a minimum of 400 000 by 2024 if each zone can attract in average between five to ten companies who will commit to sustainable 2 000 jobs per investment per area. 

The industrialists in all these sectors should primarily be South Africans whom the State should incubate, guide and finance with an appreciation that not all industries will be immediately profitable. Developmental Finance Institutions must be positioned to finance and support not less than 30 000 initiatives annually, and a 60% success rate in this regard would have created many jobs. 

These industries will not be producing daily consumables only but will leverage on the domestic beneficiation of South Africas natural resources, with a firm legislative framework that ensures that a minimum of 50% of all-natural resources are added value domestically. Massive and decisive industrialisation will in turn develop financial and professional services sector and boost other household industries because many people will have work and in need of other consumables. 

Secondly, the EFF government will decisively use state procurement in all spheres of government including state-owned entities (SOEs) and local government to guide industrialization including in these multiple special economic zones. A conservative estimated is that all spheres of government including SOEs spend above R1 trillion every year in procurement, and this should be the enabler of industrialisation and localization. 

The EFF government will amend the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (MFMA) to compel national, provincial and SOEs to procure 80% of all goods, and products from local producers of which 50% should be owned and controlled by women and the youth. Products such as glasses, cups, plates, spoons, tiles, energy efficient building materials, furniture, washing products, electronics, textile products that government use on the daily basis must be produced locally through labor absorptive means. 

The EFF government will leverage the economies of scale to purchase commonly used products such as motors, linen and garments for hospitals, clinics and correctional services facilities, food and other consumables to expand on the value for money to use government budget to have a maximum impact on industrialization and job creation.

At the core of the EFF industrial policy that is underpinned by employment dividends is the call for quality work and living wage. Those South Africans that work but continue to live in poverty because they are paid low wage, many are as good as unemployed. Any industrial policy that intends to create jobs but does not emphasis quality of work and living wage will fail to address South Africa problems of unemployment, inequality and poverty. 

It was for this reason that the EFF in Parliament objected to a R40 national minimum wage across all sectors and strongly called for sectoral determinations. For far too long, the value of wages continues to decline unabated while companies continue to make millions in profits for the shareholders. 

The EFF government will marry closely the need to create jobs through inward industrialization with quality export capacity, maximally use state procurement capacity and fast-track the process of industrialization and at the same time, the quality of work and a living wage will also be a key priority. Added to the comprehensive job creation plan that will come with the abolishment of unnecessary tenders, the EFFs plan on jobs is cogent and a decisive departure from what the post 1994 Government has been doing. The people of South Africa should give the visionary EFF political power and will gain economic power as a result. 

Floyd Shivambu is EFF Deputy President and Parliamentary Chief Whip.