Economic Stimulus Package to Spur Growth in South Africa

An economic stimulus package for South Africa, adopted by Cabinet, is set to spark economic activity and boost the country’s growth, according to the country’s president.

President Cyril Ramaphosa shared with South Africa’s business and labour leaders an outline of the economic stimulus package during a consultative meeting on Friday.

The meeting in Pretoria was a preparatory dialogue ahead of the upcoming 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.

The President presented highlights of the stimulus package that will look at economic recovery, investment and job creation.

“President Ramaphosa indicated that the stimulus package will reprioritise government spending, within the existing fiscal framework, towards activities that will stimulate economic activity.

“The package will include a defined set of economic reforms covering issues such as mining, telecommunications, tourism and transport,” said Presidency spokesperson Khusela Diko.

According to Diko, 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 on private sector funding and delivery expertise.

“The President welcomed the offer extended by business for the secondment of private sector professionals to government to improve implementation.

“Business and labour welcomed the measures being proposed to stimulate the economy, alleviate pressure on the poor and create and preserve jobs,” said Diko.

During the meeting, 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.

Diko said 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.

Measures undertaken since the State of the Nation Address to promote investment, stabilise state-owned enterprises, tackle corruption and strengthen public institutions were welcomed by business and labour.

“President Ramaphosa appealed to business to work with labour and government to prevent job losses.

“The social partners have agreed to meet more regularly to strengthen economic collaboration and take shared responsibility for accelerating the country’s growth trajectory,” said the Presidency.

Source: SAnews.gov.za