Amidst extreme levels of unemployment and the economy in a recession, Finance Minister Malusi Gigaba announced a plan on Thursday to improve confidence in the economy and boost growth. While the intervention was welcomed, issues of political credibility and government's implementation abilities could hold it back. By GREG NICOLSON & ORATENG LEPODISE.
The "inclusive growth action plan" released by Gigaba lists 14 areas requiring interventions, noting the responsible authorities and target dates. He said they were tabled after meetings with stakeholders, Cabinet ministers and the President after it was confirmed early this year that South Africa was in an economic recession. The major concerns raised by stakeholders included slow growth, rising government debt, the state of state-owned entities (SOEs), policy uncertainty and low business and consumer confidence.
"We need to emphasise the principle of leadership, united action. During these difficult economic times we need unity in action, unity in purpose of all the relevant role-players and leadership particularly emanating from government for us to be able to restore confidence in the economy and restore growth," said Gigaba. He said the points of intervention stemmed from those discussions and President Jacob Zuma's nine-point plan on building the economy.
A number of...