South African President Cyril Ramaphosa announced the implementation of the Economic Stimulus and Recovery Plan on 21 September, to improve the country’s economy.
He said that in order for our economy to grow and for jobs to increase, the increase in investment must be prioritised. Funds will be redirected to the areas listed below.
This is what you need to know:
There are five key aspects to the ‘Economic Stimulus and Recovery Plan’:
1) Ignite economic activity
2) Restore investors confidence
3) Prevent further job losses and create more jobs
4) Address urgent challenges faced by vulnerable groups
5) Address the municipal areas such as electricity rates
Within the next few weeks, governments will initiate the process for the allocation of high-demand radio spectrum to enable licensing. “This will unlock significant value in the telecommunication sector, increase competition and reduce data cost. This will provide relief for poor households, students and overall competitiveness of the country.”
- Agriculture will also be prioritised due to its huge potential which Ramaphosa suggested had been proved multiple times
- Township economies will be addressed and much assistance will be given to grow this sector
- Dire state of sanitation at many schools and complete 1 100 sanitation projects
- Shortage of tools in hospitals such as beds and linen while the Minister of Health, Dr Pakishe
- Aaron Motsoaledi, will fill 2 200 critical medical posts including nurses and interns
- Focus on infrastructure.
Minister of Finance, Nhlanhla Nene, said that the reprioritisation of funds will mainly come from underperforming programmes but that more will be explained in the medium-term budget.
