Ramaphosa stimulus package must do more than revive economy - Economists

Ramaphosa will release the details of the much-awaited plan at the Union Buildings and economists says the plan should rather be a turnaround strategy.

President Cyril Ramaphosa addresses business leaders at a business breakfast in Beijing. Picture: GCIS

JOHANNESBURG - Economists say government's R43 billion stimulus package set to be revealed by President Cyril Rampahosa on Friday, should do much more than just revitalise the economy but should rather be a turnaround strategy.

Ramaphosa will release the details of the much-awaited plan at the Union Buildings.

The latest GDP figures, released earlier this month, show that the country is in a technical recession.

Mining, manufacturing and agriculture are the three main sectors which economists anticipate government will focus on.

Economist Iraj Abedian says all sectors need to be revived.

“The economy has gone to such a contraction that all sectors need to be revived and therefore doesn’t need or cannot absorb a stimulus but requires restructuring.”

Market analyst, Viv Govender, says with the national elections taking place next year, Ramaphosa’s choice of investments will be closely monitored, including the discretionary investment management which is he says, is essential for the economy.

Additional reporting by Barry Bateman.

(Edited by Mihlali Ntsabo)