Skills targeting proposed as a medium-term remedy for economic growth in SA

While the 2022 Budget is expected to be in unison with last year's Mid-Term Policy Statement, skills targeting has been proposed as a medium-term remedy for growth.

FILE: Workers on a vehicle assembly line. Picture: @FordSouthAfrica/Twitter

JOHANNESBURG - While the 2022 Budget is expected to be in unison with last year's Mid-Term Policy Statement, skills targeting has been proposed as a medium-term remedy for growth.

Finance Minister Enoch Godongwana will deliver his maiden Budget on Wednesday afternoon.

He is expected to shed light on plans to exacerbate growth, narrowing the budget deficit and easing the financial blow on the pockets of consumers.

It has been said how the reindustrialisation of South Africa is achieved is critical for economic growth and increasing employment.

But Monde Ndlovu from the Black Management Forum said that they are looking for an indication from government that they would be actively working towards this agenda.

"For starters, it is the decision to reindustrialise which is critical and that decision must be based on empirical evidence, which is there," Ndlovu said.

He said that as it stood, South Africa's economic system was producing challenges that government is trying to fight.

"Here's the challenge with economic projections - last year because of the commodity boom we had some growth but at the same time unemployment continues to soar, at the same time, poverty levels continued to deepen and at the same time inequality continues to widen," Ndlovu said.

Apart from the potential reduction of corporate income tax, economists do not expect much to change on the revenue collection front.