The government of national unity (GNU) will continue with economic initiatives already under way to reduce poverty, inequality and create jobs, as well as introduce many new plans, such as a holding company for state-owned-enterprises, the formation of a sovereign wealth fund, and a review of the petrol price mechanism to make it more affordable.
This was according to President Cyril Ramaphosa, who in his opening of Parliament address at the Cape Town city hall last night, outlined an array of economic and fiscal policy plans and targets for the next five years to be implemented by the GNU. Most of his speech was dedicated to initiatives, plans and targets to turn around South Africa’s ailing economy.
“Circumstances require that we act together as a government and all key role players to act urgently and decisively,” he said.
The president said the government would introduce far-reaching measures to fix struggling municipalities and metros, so that the local governments could attract business investments. These measures included reviewing funding mechanisms of municipalities, putting in place systems to attract capable and qualified people in senior positions in municipalities and metros with independent oversight.
He reiterated a goal voiced by newly-appointed Public Works Minister Dean Macpherson this week, that of turning the country into a “construction site”, through the implementation of a “massive infrastructure development plan”.
Ramaphosa said they wanted to build dams, bridges, schools, hospitals, and have more broadband fibre. Regulations for public-private partnerships would be reviewed, as these had “stalled” in the past few years, he said.
The president said they would encourage the investment drive into the country, and the focus would be on labour-intensive sectors such as services and agriculture. Like many times previously, he said the government would focus on minerals beneficiation. “It is sad to see us continuing to ship out rock, soil and dust from our ports, and yet we could process and export finished products.”
The government would continue with the implementation of the National Health Insurance (NHI), a plan that has attracted significant criticism from many stakeholders.
“We are confident we can bring stakeholders together and clarify differences. We will seek consensus on issues we may not agree on,” he said.
The renewable energy revolution in South Africa was expected to be the most important driver of growth in the economy for decades to come. A green manufacturing sector would needed to be created, as would plants to produce green hydrogen, Ramaphosa said.
South Africa needed to produce electric vehicles and components. More than R1.3 trillion would be invested in the just energy transition over the medium term, also to ensure support for employees at coal mines and power stations in Mpumalanga that may be affected.
He said to improve the affordability crisis facing consumers, they would review the basket of VAT-free goods. SME development would continue to be supported.
Ramaphosa said the GNU would pursue every action that contributed to rapid sustainable growth and would work to eliminate every obstacle towards this. Various industry development “Master Plans” would continue as before, but would be reviewed for their effectiveness.
The government would also focus on expanding and strengthening the electricity transmission network. The reform of the freight logistics network would also continue. Visa reforms would continue so as to attract skills and investment not readily available in South Africa, he said.
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