President Cyril Ramaphosa outlined the ANC’s economic recovery plan for South Africa during a virtual press briefing on Monday.
This follows an ANC National Executive Committee (NEC) Lekgotla held over the weekend.
The ANC Lekgotla came soon after Statistics SA revealed that more than two million South Africans lost their jobs during the second quarter of 2020. The SA Reserve Bank also expects South Africa’s economy to contract by 8.2 percent in 2020.
Infrastructure-led economic recovery
Ramaphosa said the NEC Lekgotla had agreed that South Africa’s reconstruction and recovery plan “will be an infrastructure-led strategy.”
The government will therefore promote investments in “energy; water and sanitation; public transport, roads and bridges; human settlements, health and education; digital infrastructure; and public transport,” he added.
Ramaphosa said the government will focus on the following key areas:
- Strengthening energy security
- Localisation through industrialisation
- Strengthening food security
- Infrastructure investment and delivery that meets the National Development Plan (NDP) goals
- Support for tourism
- Green economy interventions
- Public employment programmes
- Gender equality and economic inclusion of women and youth
- Macroeconomic policy interventions.
The President added, “The ANC will guide the work of government, working with the social partners to generate higher rates of economic growth, investment and job creation.
“Our aim is to radically transform our society to make it truly non-racial, non-sexist and economically more inclusive.”
The plan will be inclusive because it will promote local employment, seek to transform the structure of the economy, and recognise the role of SMMEs and cooperatives in creating employment.
“To achieve significant job creation multipliers, the emphasis will be on localisation, including maximising the use of South African materials and construction companies as well as labour-intensive methods,” Ramaphosa explained.
Other elements of the plan include:
- Developing “green” and “blue” economies to stimulate investment growth and jobs creation.
- Urgent auction of telecommunications spectrum in a manner that ensures participation of both new black players and big telecoms companies.
- Reducing budget deficit, managing borrowing costs and implementing pro-growth/pro-investment reforms.
- Strengthening state capacity.
- Exploring alternative funding models for infrastructure development, including public private partnerships and build, operate and transfer models.
- Establishing Project Bonds and Green Infrastructure Bonds “to mobilise finance for expanded infrastructure investment.”