Struggling with limping growth and high unemployment rates, South Africa's ruling African National Congress (ANC) is reiterating the importance of the state's role in the economy. The ANC is now looking to foreign experiences for a new model of development.

Debate on the best way to combat social injustice and youth unemployment is reaching fever pitch levels in South Africa. The ANC, virtually forced to come up with answers to some pressing questions, is now reaffirming the state's role in the national economy and the need to find a better model for creating employment opportunities.

At the beginning of this month, the party's executive committee put together a focus group, whose mission is to compare the experiences of 13 countries, stretching from Norway to Venezuela. In June a conference will complete the initiated work.

According to the International Monetary Fund's last forecast for 2012, growth will stay around 2.5 percent, which is a reduction of 1.1 percent from the last forecast from last September.

This contrasts starkly with the generally positive forecast for Sub-Saharan Africa, where GDP is estimated to rise by 5.5 percent.

The South African government's forecasts growth of 7 per cent in 2012, which will create 5 million jobs by 2020, and reduce youth unemployment rates that float around 50 percent at present.

Lately the ANC's internal debates have been rather controversial, not least by ANC Youth League's suspended leader Julius Malema's nationalisation calls of South African mines.

However, few believe such a solution is desirable or even feasible. Nonetheless, Malema's declarations, hinting that the benefits of the country's mineral resources are restrained to a white elite, have created worry amongst investors.

"We deeply disagree with the ANCYL, although I recognise that profits are not benefitting all parts of the population," admits Enoch Godongwana, in charge of economic questions in the ANC.

No magic potion

In light of this, the role of the state is still to define. Godongwana reckons that the authorities should target strategic sectors. For example, the mining industry could back up a badly shaped manufacturing sector.

But Godongwana remains sceptical to reinforced state intervention in the mining industry. The public company African Exploration Mining and Finance Corporation was created last year for this particular purpose.

The ANC prefers to rely on sectors that are already locked by monopolies or oligopolies, such as the steel industry.

Again, these considerations contribute to a discomfort in the business world, and the feeling is further worsened by the multiplication of political strands within the ANC.

One thing remains clear, however. For entrepreneurs the objective is to eliminate any bottleneck in terms of infrastructure, market flexibility and workers' qualifications.

Aluminium factory, ATS Alexandra, on the outskirts of Johannesburg, is the exception that confirms the rule. Last year the company went from 18 to 118 blue-collar workers.

Nevertheless we should not expect any miracles from the ANC, according to Glenton Rebello. "If the government wants to change things it needs to retake control over the unions. Alas, they've shared the same bed for too long".

This article was translated from our Sister edition, Jeune Afrique, February 12-18 issue (2666), by Olivier Milland