The economic stimulus package adopted by the cabinet will reprioritise government spending within the existing fiscal framework towards activities that will stimulate economic activity, the presidency said on Sunday.
President Cyril Ramaphosa had “shared” with South Africa’s business and labour leaders an outline of the stimulus package adopted by the cabinet to spark economic activity and secure confidence in sectors affected by regulatory uncertainty, his spokesperson Khusela Diko said in a statement.
Ramaphosa presented highlights of the stimulus package that would soon be announced publicly, to business and labour leaders during a consultative meeting on Friday on economic recovery, investment, and job creation.
The meeting in Pretoria had been a preparatory dialogue ahead of the forthcoming jobs summit and investment conference. The meeting was also attended by Deputy President David Mabuza, ministers in the economic cluster, leaders of business formations, CEOs, and leaders of the country’s major labour federations, Diko said.
Ramaphosa had indicated that the stimulus package would reprioritise government spending within the existing fiscal framework towards activities that will stimulate economic activity. The package would include a defined set of economic reforms covering issues such as mining, telecommunications, tourism, and transport.
“The meeting agreed that South Africa’s economic recovery demands urgent implementation of the stimulus package and promised growth-enhancing reforms. The meeting also discussed proposals to establish an infrastructure development initiative that draws in private sector funding and delivery expertise,” Diko said.
Ramaphosa welcomed the offer extended by business for the secondment of private sector professionals to government to improve implementation.
The meeting provided an opportunity for government, business, and labour to exchange views on problems facing the economy. Delegates engaged frankly on constraints to growth and entrepreneurship, and issues affecting the lives of citizens, including safety and security.
Business and labour welcomed the measures being proposed to stimulate the economy, alleviate pressure on the poor, and create and preserve jobs, Diko said.
“Social partners urged government to accelerate finalisation of the Mining Charter, spectrum policy, and other instances of regulation that hold the potential to make the economy more efficient, agile, and competitive. In acknowledging these challenges, participants called on the nation to focus attention on the progress the country was making across many sectors and to become active in sustaining positivity.”
Business and labour welcomed measures taken since the state-of-the-nation-address earlier this year to promote investment, stabilise state-owned enterprises, tackle corruption, and strengthen public institutions.
Ramaphosa appealed to business to work with labour and government to prevent job losses. The social partners had agreed to meet more regularly to strengthen economic collaboration and take shared responsibility for accelerating the country’s growth trajectory, Diko said.