Finance minister Enoch Godongwana has hit back at critics who raise poverty concerns during major international events hosted in SA, saying such commentary often amounts to an attack on the credibility of the occasion rather than a genuine engagement with policy.
Speaking on the readiness of the G20 summit in Sandton, Godongwana said the state is perfectly aware of the poverty in the country and that the government is grappling with the issue daily and has put extensive measures in place to mitigate its impact.
But in the absence of employment, you put mitigating measures that deal with poverty.
— Enoch Godongwana, finance minister
“Every time we have an event in SA, people remind me, ‘But there are people who are poor.’ We know that, but I take it as a form of an attack on the event. Because on a day-to-day basis, we are grappling with this question,” he said.
Godongwana stressed that while employment is the best way to combat poverty, in its absence, SA has developed one of the strongest social protection systems globally.
“Part of the major instrument of dealing with poverty is employment. But in the absence of employment, you put mitigating measures that deal with poverty. In that respect, SA is second to none. The closest in terms of social protection we have is Chile,” he said.
Godongwana pointed to the national budget, noting that 61% of non‑interest spending is directed toward the social wage, including grants, healthcare, and education.
“This excludes what is called the subsidies of basic wages or basic services in municipalities. That in itself is a different package, which is R106bn. In order to deal with poverty in the absence of dealing with the major instrument of dealing with inequality, which is employment, we are turning the corner,” he said.
Godogwana added that the G20 leaders’ declaration will not be hindered by the US’s absence.
“The fact that the US is not here does not preclude a declaration. In fact, the countries that are participating now agree on a declaration. This is a declaration of the countries that participated, and in so doing, it excludes the Americans,” he said.
He added that the US has no grounds not to “invite” SA to the G20 next year.
“We are members of the G20…so we don’t need an invitation from anybody,” he said.
Sowetan