‘Unemployment, state of SA’s economy gives me sleepless nights’ – Ramaphosa

President Cyril Ramaphosa says unemployment and the poor state of South Africa’s economy is giving him “a torrid time”.

Ramaphosa said this in a Q&A session with journalists on Wednesday just after responding to the opposition’s State of the Nation Address (Sona) debate.

“What keeps me awake at night, and I am seriously kept awake, it is the state of our economy that keeps me awake, state of unemployment. It is very difficult to countenance 11 million people out of work who are not economically engaged in any activity.

“That is enough to keep me awake at night and it concerns me a great deal,” the president said.

Ramaphosa’s Sona last week was largely focused on the measures the government was taking to enable faster economic growth and the creation of employment.

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He said that this was because “fixing the economy is our most pressing challenge at this moment, and is essential to progress in almost every other area of life.

“Our focus on the economy does not, however, diminish the importance of the many other areas of government’s work.

“Many of these issues have been raised in the debate and will be dealt with in greater detail in upcoming budget votes and public engagements by ministers.”

While the Sona focused on growth and employment, millions of South Africans face the immediate challenge of feeding themselves and their families.

It is estimated that food poverty affects some 5.5 million households.

Ramaphosa said that without monthly grants for children, the elderly and persons with disabilities, many people in South Africa would face destitution.

“We know that grants have provided an effective system for income redistribution and poverty alleviation, in a society with unacceptable levels of inequality.

“Given the scale of unemployment and the impact of the pandemic, the interventions we are undertaking to create jobs will take many years to reach all 11 million South Africans who are unemployed.”

He said this were some among other reasons that the government took a decision to extend the R350 Covid-19 grant to March next year.

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“We are extending for another year precisely to reach these people and to stave off hunger. We are doing this within a fiscal environment that has been badly worsened by the pandemic.

“We need to do so while making sure that we do not further weaken our macroeconomic position and that we do not allow our debt service costs to further crowd out social spending.

“As a country, we nevertheless need to fill the gap in social protection to achieve a minimum level of support for those who cannot find work.”

Ramaphosa said that finding a sustainable, affordable and effective solution must be one of the central pillars of the renewed social compact that the government has undertaken to build.