South Africa’s current unstable political environment has a massive influence on the economy, African National Congress presidential candidate Mathews Phosa said on Thursday.

Speaking at the SBi Small and Medium-sized Enterprise (SME) Indaba, in Johannesburg, he stated that the country’s mismanaged economy had led to rampant corruption and that government entities such as the South Africa Revenue Service (Sars) and the National Prosecuting Authority (NPA) were seemingly captured.

The top structures of the NPA and Sars, he suggested, should be replaced with career bureaucrats and businesspersons with no political affiliations.

Phosa added that amid claims of State capture, along with uncertainty surrounding the contestation for positions at the ANC’s elective conference in December, it was no surprise that investors were looking elsewhere for wealth creation opportunities.

He pointed out that the country’s debt was more than 50% of its gross domestic product and that growth forecasts were extremely low, at a time when the country’s unemployment rate stood at about 27% and was likely to accelerate if current economic circumstances prevail or worsen.

“We have good policies [but] a dire scarcity of execution by the State and we waste time debating economic cul de sacs such as nuclear power, which, is far from shelved,” he said, adding that it was a “suicidal” initiative that government must walk away from.

He said it was imperative to redesign the country’s foreign investment practices to expedite investment and to deregulate small businesses as much as possible.

“We are moving dangerously close to a situation where we will face tax revolt by the masses if the cold, calculated and criminal misuse of taxpayers’ money increases. The time for a multiparty conference with business and others to honestly re-engineer our failing economic policies is now,” he stated.

He added that there was still time to reposition the economy, depoliticise key government departments and State-owed entities and prepare for a coalition government in 2019.

“What we don’t have time for is debates on how to create employment for the millions of dissatisfied and socially angry voters who are sick and tired of empty promises and leaders living in wealth stolen from patriotic taxpayers.

“We need leaders who will support radical economic growth in the country. We need stability in our economy urgently and we need to fight crime, which is increasing. There is a major need to promote a nonracial, nontribal South Africa,” Phosa stated.