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Efficient Group chief economist Dawie Roodt says President Cyril Rmaphosa is unlikely to present “new” information when he presents his economic recovery plan on Thursday afternoon (October 15).
In an interview with Jacaranda, Roodt said that South Africa already has several ‘plans’ it is working on, and that this latest economic recovery presentation is the latest in a long list of proposed changes.
“Whatever the plan, it will probably focus on infrastructure development and job creation in the country. I’m not too optimistic about the plan and I don’t think much will really happen or change. “
Roodt said this is because the plan has the wrong emphasis and the government’s focus should be on making the existing state work properly, especially in problem areas like state-owned companies.
He said that the current economic crisis in South Africa is not due to the coronavirus pandemic, but to the country’s lockdown, which has proven “disastrous” for the economy.
Roodt said any plans are unlikely to fix the country’s economy and it will likely take many years to see any kind of recovery.
Ramaphosa’s plan to build trust
Ramaphosa is expected to appear before parliament on Thursday to outline the country’s long-awaited economic recovery plan.
“We need to take extraordinary steps towards a rapid and sustainable economic recovery,” the president said.
The South African economy contracted 51% in the second quarter of 2020. The period coincided with the harshest levels of the country’s blockade, as the government limited movement and economic activity in an attempt to slow the spread of the coronavirus.
Last week’s Lekgotla Cabinet focused on crafting a reconstruction and recovery plan focused on infrastructure, job creation and industrialization.
Talking to SAfm on TuesdayProfessor Raymond Parsons from the North West University School of Economics said South Africans expected a “credible and implementable” plan.
“[A] a way that will make a difference in our economic outlook, ”he said. “You need to help change our economy, implement key economic reforms, you need to build investor confidence and actually create jobs.”
During the interview, Parsons said the plan was to build trust, “it’s to show that there are new and better ways that we can ensure we deliver what we are promising and have promised in a way that will make a difference on the ground.”
“Another important dimension, a test that will be applied on Thursday for the successful implementation of what was promised, will be the extent to which the private sector is involved and used to help generate the result we want.
“The way in which the private sector and the markets will react this week will also depend on the deadlines for the implementation of what was promised and to what extent new paths are opened. We know that bribery and delay have been enemies of delivery, ”he said.
Read: A clearer picture of South Africa a year or two away: Piet Mouton
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