Midrand - There is 'little glimmer of hope' in the resolution of problems in the Eurozone with decision makers lagging behind, Finance Minister Pravin Gordhan says.
"We have realised that there's little glimmer of hope of expectations of Europe," Gordhan said on Thursday at the launch of the Black Business Council at Gallagher Estate. The minister was speaking following the G20 Finance Minister's meeting last week in Mexico.
The problems, he said, have cast a dark cloud over the world.
There was a mixed picture that was unfolding with small sight of recovery in the US, the world's biggest economy. Although there was growth in developing countries, this was being slowed down by the happenings in Europe.
"We are not seeing decisive enough action," he said of European decision makers. "European decision makers are lagging behind."
He said while South Africa, in the global context, was operating in a 'not happy enough environment', there were opportunities available.
"The world economy needs to be restructured and rebalanced," he added.
South Africa, he said, needed investment-led growth. "It is time to have confidence in our economy while also attracting investment from outside, investment should also come from South African business. In order to be more competitive, South Africa needs to invest in skills development while also solving the youth unemployment debate."
Economic Development Minister Ebrahim Patel said the launch of the council came at a time when the global economic recovery remained fragile.
"We face deep challenges," said Patel, adding that the path of exporting raw materials and importing consumer goods was no longer sustainable. It is now time to spur on major industrialisation as well as to bring the public into the mainstream economy.
Patel said what was needed now was a unified national vision.
