South African President Cyril Ramaphosa on Monday said the government will finalise a clear economic growth strategy for the country within the next few weeks, reported Reuters.
The growth plan is aimed at boosting confidence in an economy that is currently facing lower growth and job cuts. It is expected to include strategy to restructure state owned enterprises such as power utility Eskom and the establishment of an infrastructure fund.
In the first of his weekly messages to the nation known as “From the Desk of the President”, the President said people were looking for signs of progress after a decade of low growth and deepening poverty.
Ramaphosa said the economy would this year record growth that was lower than expected and much lower than what the country needed, when government finances have been stretched about as far as possible, and several industries are planning cutting jobs.
Without giving specifics of the plan, the president said the progress work is being undertaken at a time when government’s finances are under great strain, and there is very scope for the government to increase spending or borrowing.
Ramaphosa said looking at the current economic situation of the country, the government needs to spend resources more smartly, get rid of wastage and shift more resources to infrastructure investment.
In related news, the South African president has also appointed members of the Presidential Economic Advisory Council with effect from 1 October 2019.
The council, which comprises of local and international economic thought leaders, will advise the president and government more broadly, facilitating the development and implementation of economic policies that spur inclusive growth. It is expected to serve as a forum for in-depth and structured discussions on emerging global and domestic developments, economic and development policies, and to facilitate socialisation and diligent execution thereof.