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South African President Cyril Ramaphosa said consensus is emerging on a plan to revive an economy mired in the worst recession since 1992.
The proposals should be finalized within three weeks and the government will move to implement them, Ramaphosa said in an online briefing for the South African National Editors Forum on Wednesday.
“Now we have to move on to be able to present the plan to the nation,” he said. “I want to see the implementation take place and it will be directed from the office of the president.”
The coronavirus and a lockdown imposed at the end of March to slow its spread brought Africa’s most industrialized economy to near a standstill, with gross domestic product contracting an annualized 51% in the three months through June from the previous quarter. .
The unemployment rate, which was 30% before the pandemic hit, will rise with a group of 30 academics and researchers estimating that 3 million people lost their jobs between February and April.
The government has presented a R500 billion ($ 30 billion) package to support those most affected by the shutdown. Ramaphosa is also spearheading a campaign to get more than $ 100 billion in private investment in infrastructure over the next decade.
Still, business leaders have complained that the government has not shown the urgency needed when it comes to reviving growth and cutting red tape, with a plethora of meetings and successions of plans that do not culminate in concrete action.
Talks between business, labor and government leaders to reach an agreement on the recovery plan are moving slowly, but they are moving forward, a person familiar with the negotiations said on Wednesday, who asked not to be named as the discussions are not public. The sticking points are narrowing down the number of focus areas and being more specific about time, resources and commitments, they said.
Ramaphosa said the plan should be finalized as soon as possible and funding is still being discussed.
“The government has largely run out of money and we are going to have to improvise money,” he said. “The private sector will play a key role, the government will play a key role, and we will all have to work shoulder to shoulder to make sure this recovery plan works.”
The president also said that his administration is steadfast in its commitment to fighting rampant corruption and will provide law enforcement agencies with additional resources so they can do their jobs.
“We are fixing things thoroughly,” he said. “We have now reached a stage where the changes we all want to see will begin to unfold.”
Other highlights:
- The broadband spectrum auction should be accelerated.
- The government is evaluating when to ease the lockdown restrictions further.
- Economic reforms and a massive employment program are underway.
- The country may face sudden increases in coronavirus cases and is strengthening its response to the pandemic.
- Ramaphosa wanted to present a 1 trillion rand financial support package in response to the virus, but the country did not have the money.
Read: Explaining 51% of South Africa’s GDP, and a ‘swoosh’ recovery
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