2005-12-01,+Where+the+Six+Percent+came+from,+Business+Report



=**Mbeki needed prodding to target 6% growth, says Tata**=

Business Report, November 30, 2005

 * By Renée Bonorchis**

It took some very persuasive arguments by some of the world's most powerful businessmen before President Thabo Mbeki took the plunge and announced that South Africa was aiming to achieve a 6 percent growth rate.

According to a participant in the International Investment Council, which the president established in 2000 to advise him on economic policy, Mbeki and his ministers were initially reluctant to commit to the 6 percent target.

Ratan Tata, a member of the council and chairman of one of India's largest conglomerates, told South African journalists in Mumbai last week that council members had sensed "diffidence" on the part of the government on setting a target for economic growth higher than the current growth rate of 4 percent.

Tata chairs India's Tata Group, which has investments in information technology, telecommunications, steel, vehicle manufacturing and chemicals.

"We said, set a target of 6 percent. There is a chance you can achieve 5.5 percent but it will be 5.5 percent and not 4.2 percent," Tata said, adding that the council members had advised South Africa: "Don't be afraid of missing your numbers slightly."

Mbeki announced the new target after a cabinet lekgotla in July. He added that South Africa was sometimes punished by the financial markets and investors for developments outside of its control, such as problems in other southern African countries. JS


 * From: http://busrep.co.za/index.php?fSectionId=553&fArticleId=3015652**