Ramaphosa Urges ANC to Correct Its Ways as Targets 5% Growth

(Bloomberg) -- South African Deputy President Cyril Ramaphosa said the governing African National Congress must restore investor confidence and avoid populist policies in order to revive the struggling economy.

Bold, decisive action is needed to change South Africa’s growth trajectory and the government should target an expansion of 3 percent in 2018 and 5 percent by 2023, he said at an ANC event in Soweto, near Johannesburg on Monday. The country needs a “new deal” to accelerate radical economic transformation so that growth is more inclusive of the majority black population, the deputy president said.

Ramaphosa is seen as a frontrunner to succeed President Jacob Zuma as head of the ANC when the party meets for its elective conference from Dec. 16-20. His main rival for the post is Nkosazana Dlamini-Zuma, the president’s ex-wife and former chairwoman of the African Union Commission.

Allegations of state capture, a local term to describe the undue influence private interests allegedly wield over the government, has negatively impacted the country’s economy, Ramaphosa said. Zuma’s administration has been rocked by a series of scandals, including his relationship with the Gupta family, who are his friends and in business with one of his sons. Zuma and Guptas have denied any wrongdoing.

Zuma said in an interview with Johannesburg-based broadcaster ANN7 that he put in place many measures to avoid corruption.

“I have fought corruption,” Zuma said. “There is no executive that is captured.”

The term state capture is “political propaganda” and is an incorrect term, he said.

To contact the reporters on this story: Amogelang Mbatha in Johannesburg at ambatha@bloomberg.net, Paul Vecchiatto in Cape Town at pvecchiatto@bloomberg.net.

To contact the editors responsible for this story: Karl Maier at kmaier2@bloomberg.net, Vernon Wessels, Mike Cohen

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