The South African economy has been growing very slowly,
Bold plans to ignite certainly not fast enough to create suffi cient jobs for citizens, and this has left the country with an unemployment rate of 27.2 percent.
To address this slow economic growth, President Cyril Ramaphosa has unveiled ambitious measures that are set
to ignite growth in the South African economy, boost much-needed job creation and restore investor confi dence.
Details of the economic stimulus and recovery plan, which was adopted by Cabinet, were announced by the President recently.
In the main, the plan prioritises areas of economic activity that will have the greatest impact on youth, women and small businesses.
It arose from government’s concern that, for several years, the South African economy has not grown at the pace needed to create enough jobs or lift its people out of poverty.
Added to this are factors such as public finances being constrained, limiting the ability of government to expand its investment in economic
and social development, coupled with the twin evil of recent months,
which saw structural weaknesses in the country’s economy aggravated by global factors.
These included the rising oil price, weakening sentiment towards emerging markets and deteriorating trade relations between the US and other major economies.
PSM spoke to the DirectorGeneral of the Department of Trade and Industry, Lionel October,
to unpack the importance of the economic stimulus and recovery plan, and how it will impact on the country’s economy.
October said the objective of the plan is to lay the building blocks needed to take the economy to higher levels of growth.
“The first thing that we need to build is investor certainty. People are not spending in this economy; there is lack of demand in the economy.
Consumers are not spending because they are under pressure because of high prices.
Business is not spending because they are uncertain about the future; government is also not spending sufficiently,
and for the economy to grow there must be spending so that we can build more factories, offices and produce more products,” he explained.
In an effort to turn things around and create an environment that would make more investors certain about South Africa’s economy,
October said government and business have solved issues related to the mining charter and it has been finalised.
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