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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.
A joint sitting of parliament recently listened to the president who identified the six key interventions of the economic reconstruction and recovery plan:
- To achieve sufficient, secure and reliable energy supply within two years;
- To create and support over 800,000 work opportunities in the immediate term to respond to job losses;
- To unlock more than R1 trillion in infrastructure investment over the next four years;
- To reduce data costs for every South African and expand broadband access to low- income households;
- To reverse the decline of the local manufacturing sector and promote re-industrialisation through deeper levels of localisation and exports; and
- 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.
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.
We are going to:
1. Create Work opportunities.
2. Re-Industrialize the economy.
3. Create Supplier Development Programs for SMEs.
4. Localize production.
5. Youth Empowerment.
6. Township Economy.
Is this deja vu of have we all heard this before? #EconomicRecoveryPlan
— VT (@VusiThembekwayo) October 15, 2020
The President’s words are hollow.
This is not an #EconomicRecoveryPlan – this is a laundry list of rehashed ideas from the past.
In a time when we need bold, decisive leadership combined with action and implementation, instead we got more words and empty promises.
— Herman Mashaba (@HermanMashaba) October 15, 2020
How will these 800 000 jobs be created if ignore SMMEs?
2018 ~1 million jobs were promised
2019 ~2 million jobs were promised
2019 ~ 50 000 jobs per month were promised for youth. YES programme
2020 ~ 800 000 Jobs have been promised#EconomicRecoveryPlan
— Entrepreneur Zone (@SayEntrepreneur) October 15, 2020
— BlackWomenOnly (@BlackWomxnOnly) October 15, 2020
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.