For us to join the Rand monetary area, we have to make sure that there is what we call macro-economic convergence. This means that our economic variables must be in the ball pack of the Rand Monetary Area and one example is the budget deficit. The Rand Monetary area would say the countries which are using the Rand must not incur a budget deficit of above 5% GDP. So, there we will not pass the mark because our budget deficit will be 30%, 35% of GDP. So, we need to engage with South Africa to make sure that we can be accommodated on the Rand Monetary area and be put on a programme that ensures that our macro-economic variables converge with those of the Rand Monetary area. We need negotiations with the South African Reserve Bank to take into effect.
The problem with multi-currency basket, Mr. Speaker Sir, is that consumers and exporters will use the strongest currency in that basket. This is why in 2009, when we introduced the multi-currency system, the usage of the United States dollar was 49% and that of the Rand was 49% but over time, the Rand has been dumped and its usage is below 5%. The market will choose the strongest currency in that basket. So, that is why I am saying if we were going to use the Rand per se, it might solve our liquidity or cash flow problems as a country.
Mr. Speaker Sir, to finalise or conclude my discussion, I think we have to look at our country seriously now. Our people are suffering, we are the legislators, we are the pall bearers and we have to recommend solutions to Government in line with our oversight functions to make sure that this country ticks, has confidence and our people’s livelihoods are supported. It is incumbent upon this House to rise above partisan lines and make sure that we move the country forward.
Yes, we can overcome sanctions if we address our own fundamentals that we control. This country is not run by America, and is not run by Britain. We control agriculture – [HON. MEMBERS: Hear, hear.]- We control our mining. Let us work on the variables that we control and not to always cry foul – you see. What have we done to the things that we can control? The peace dividend – our natural resources endowment, all those things, are things we can leverage as a country before looking at exogenous factors like the sanctions.
We need to engulf everybody so that we focus on the solutions; we need to deal with corruption. Corruption is a cancer. You do not need sanctions to deal with corruption. Look at what is happening in NetOne; these parastatals are milking the economy. These are the things we can deal with on our own to make sure that we address the challenges that we are facing.
Public procurement – again, public financial management in the public sector; if you look at the Auditor General’s report, it is a sorry state of qualifications about the performance of the public finances. There are qualified reports, year in, year out – be it GMB this parastatal that parastatal. We plug those holes by improving transparency and accountability in the way we run our affairs as Government. Of course, we have to address – which is number 9, domestic debt. Our domestic debt is unsustainable and we have to address it as a matter of urgency. Above all, we need to stimulate domestic production. Without production, the cake will get smaller and smaller and the revenue which will accrue to the State will get smaller and smaller.
So we need the right macro-economic policy framework in this country to move this country forward. Above all, we need to resolve the political question in this country which has remained on the agenda for a long time. It is now toxic and people are now fighting each other across all parties – so we have to resolve our political issues in this country so that we emerge as a stronger nation. I thank you.
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