Government announces recovery plan to help SA’s citizens
The President has hinted at lower data costs which will provide relief for poor households and increase the overall competitiveness of the South African economy.
The government has announced a stimulus and recovery plan that consists of a range of measures, both financial and non-financial.
These measures, according to President Cyril Ramaphosa, will be implemented immediately to firstly ignite economic activity, secondly restore investor confidence, thirdly prevent further job losses and create new jobs, and fourthly to address some urgent challenges that affect the conditions faced by vulnerable groups among our people.
“The measures we are announcing give priority to those areas of economic activity that will have the greatest impact on youth, women and small businesses,” said the President.
He said the stimulus and recovery plan has the following broad parts:
- Firstly, implementation of growth enhancing economic reforms.
- Secondly, reprioritisation of public spending to support job creation.
- Thirdly, the establishment of an Infrastructure Fund.
- Fourthly, addressing urgent and pressing matters in education and health.
- Fifthly, investing in municipal social infrastructure improvement.
“It is generally agreed that in order for our economy to grow at a rate that will lead to job creation on a meaningful scale, we need to significantly increase levels of investment,” said the President.
“We are decisively and rapidly accelerating the implementation of key economic reforms that will unlock greater investment in important growth sectors.
“These reforms include immediate changes approved by Cabinet to South Africa’s visa regime.”
He said within the next few months, amendments will be made to regulations on the travel of minors, the list of countries requiring visas to enter South Africa will be reviewed, an e-visas pilot will be implemented, and the visa requirements for highly skilled foreigners will be revised.
“These measures have the potential to boost tourism and make business travel a lot more conducive. Tourism continues to be a great job creator and through these measures we are confident that many more tourists will visit South Africa.
“It is imperative that South Africa restores investment and exploration levels in the mining sector as mining and mineral beneficiation activities have significant potential to drive long term growth, exports and job growth.
“To reduce the cost of doing business, to boost exports and to make South African industry more competitive, government has begun a review of various administered prices, starting with electricity, port and rail tariffs.”
He said within the next few weeks, government will initiate the process for the allocation of high-demand radio spectrum to enable licensing.
“This will unlock significant value in the telecommunications sector, increase competition, promote investment and reduce data costs. ”
In total, the plan will result in reprioritised expenditure and new project level funding of around R50 billion.
“We are certain that the measures we have outlined will complement the deliberations at the forthcoming Jobs Summit.
“We are certain that these interventions will help to put the economy on a far firmer footing as current investors and potential investors convene in Johannesburg for the Investment Conference at the end of October.
“As South Africans, we have confronted challenges far greater than this before. By working together, we managed to end a seemingly intractable conflict and set our country on the path to a peaceful transition to democracy.
“Now, we have it within us to come together once more and forge a new path of growth, jobs and transformation. We are confident that the elements of our economic stimulus and recovery package will play a decisive role in reversing the recent contraction of the South African economy.
“Together, we are taking bold and concrete measures to ensure a clear and sustained improvement in the lives of all South Africans.:
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