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President Cyril Ramaphosa announced a raft of policy reform plans on Friday, including re-prioritising R50 billion of public spending to boost economic growth and create jobs.
Africa’s most industrialised economy entered recession in the second quarter for the first time since 2009, in a blow to Ramaphosa’s pledge to turnaround the economy after a decade of stagnation.
Ramaphosa fell short of announcing a stimulus package, saying there was no room to increase spending or borrowing.
“We have to resort to re-prioritising our budget and our spending,” Ramaphosa said in Pretoria.
“The central element of the economic stimulus and recovery plan is the reprioritisation of spending towards activities than have the greatest economic effect.”
Ramaphosa also said the government would launch a R400 billion infrastructure fund.
After an initial rise following Ramaphosa’s election as African National Congress leader in December and state president in February, business confidence has wavered, falling to a one-year low with investors concerned about land and mining ownership reforms.
Ramaphosa said the country’s economy would be put on a firmer footing by the measured he announced on Friday.
Finance Minister Nhlanhla Nene added at the same media briefing that funds for the financial intervention would be found from under-performing government programmes, without giving any details.
Details will follow in his October budget, he said.
One of the most interesting announcements by Ramaphosa was of a 10-person advisory panel on land reform.
Details of the panel’s members, its mandate, and how its would work with other govt bodies are set to be made public in due course.
Ramaphosa said: “As part of the work to develop agriculture and ensure effective land reform, I have appointed an advisory panel on land reform that will guide the inter-ministerial committee on land reform chaired by Deputy President David Mabuza.
“The 10-person panel is to advise government on the implementation of a fair and equitable land reform process that redresses the injustices of the past, increases agricultural output, promotes economic growth and protects food security. More details of the mandate and composition of the panel will be made available in a separate statement.” – Reuters
