Tim Modise, Vusi Thembekwayo, experts: SA economic recovery plan – ‘Let’s not lie to ourselves’

President Cyril Ramaphosa revealed an ambitious post-Covid-19 economic recovery plan in Parliament that could create 800,000 jobs. It also includes a 3-month extension of social grants and amendments to the red lists of countries to enable more tourists to come to South Africa. A BizNews panel consisting of venture capitalist Vusi Thembekwayo, political analyst Lukhanyo Mnguni and Busi Sibeko from the Institute for Economic Justice said the government stimulus package for the economy should be coupled with anti-corruption measures to ensure that the money allocated, gets to the right people. There was also a suggestion that the informal sector should receive more help, that credit markets should be liberalised and that the provinces would be a perfect place to start trimming the bloated civil service. – Linda van Tilburg

Listen to this snapshot of what analysts make of SA’s economic plans – and then add your views, below this article:

By Derek Alberts

In one of his most commanding performances since taking office in December 2017, President Cyril Ramaphosa on Thursday unveiled South Africa’s ambitious reconstruction and recovery plan. Already limping before the coronavirus arrived in March, the economy was dealt a devastating blow by the pandemic over the past six months. But a cautiously optimistic prognosis of Covid-19, and the renowned resilience of the South African nation emboldened Ramaphosa to share his New Deal that is both far- reaching in its vision for the economy to grow by at least 3% on average over the next 10 years, and specific in the six interventions planned over the next four years.

Read also: President Ramaphosa’s plan to restore SA economy – more jobs, less debt: Full statement

A joint sitting of parliament recently listened to the president who identified the six key interventions of the economic reconstruction and recovery plan:

  1. To achieve sufficient, secure and reliable energy supply within two years;
  2. To create and support over 800,000 work opportunities in the immediate term to respond to job losses;
  3. To unlock more than R1 trillion in infrastructure investment over the next four years;
  4. To reduce data costs for every South African and expand broadband access to low- income households;
  5. To reverse the decline of the local manufacturing sector and promote re-industrialisation through deeper levels of localisation and exports; and
  6. To resuscitate vulnerable sectors such as tourism, which have been hardest hit by the pandemic.

The recovery, Ramaphosa vowed, will be propelled by swift reforms and supported by an efficient state that is committed to clean governance.

Read also: At least 20% of jobs and businesses in SA lost forever, thanks to lockdown – expert

The plan is underpinned by four priority interventions:

  • a massive rollout of infrastructure throughout the country.
  • a rapid expansion of energy generation capacity.
  • an employment stimulus to create jobs and support livelihoods; and
  • a drive for industrial growth.

Watch the BizNews webinar hosted by Tim Modise here.

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