Ramaphosa details economic stimulus package to revive economy
President Cyril Ramaphosa says the package contains five measures to stimulate the economy.
PRETORIA - President Cyril Ramaphosa has announced a wide-ranging economic stimulus package which has placed investment focus on agriculture, townships and rural economies.
The president made the announcement at a briefing in Pretoria on Friday.
The latest Stats SA GDP figures reveal that South Africa has entered a recession.
Ramaphosa says the package contains five measures to stimulate the economy.
"Firstly, to ignite economic activity in our country; secondly, to restore investor confidence; thirdly, to prevent further job losses and of course to create new jobs; fourthly, to address some urgent challenges that affect the conditions that are faced by a number of vulnerable groups. A fifth measure has to do with the municipal area."
The president noted that numerous international and external factors have negatively affected South Africa's growth.
He says that the measures are to be implemented immediately and will ignite economic activity, restore investor confidence and prevent further job losses.
He's admitted for several years that our economy has not grown at the pace needed to create enough jobs. He says the plan will cost about R50 billion.
“In total, the plan will result in reprioritised expenditure and new funding of around R50 billion. The Minister of Finance will provide more details during the medium-term budget policy statement next month.”
The plan, he says, will introduce growth, enhance economic reforms and prioritise public spending to support job creation.
One of the measures that government will implement is to amend visa requirements to make it easier to travel to South Africa.
To reduce the cost of business, government will start a review of various administration prices, starting with electricity, ports and rail tariffs.
Ramaphosa says that the central element of the plan is to reprioritise spending towards activities that will have the greatest impact on economic growth, with the reprioritised spending going towards agriculture, the townships and rural areas.
The president says that he has appointed an advisory panel on land reform and that they have good experience in agriculture and are business oriented.
He adds that government will also redirect resources to deal with challenges in the health and education sectors.
WATCH: Ramaphosa announces economic stimulus package