President Cyril Ramaphosa will reveal his much-awaited Economic Reconstruction and Recovery Plan. President Ramaphosa says the effects of the covid-19 pandemic has plunged South Africa and the African continent into an unprecedented crisis. He adds that extraordinary measures are needed to ensure a speedy and sustainable economic recovery.
Present Ramaphosa will virtually address the two Houses of Parliament; the National Assembly and the National Council of Provinces (NCOP). The recovery plan is the end result of extensive talks between the government and its social partners including business and labour.
The DA says its initial assessment has shown that out of the 15 reform areas being tracked, 73% of these are still yet to move beyond the rhetoric or conceptualisation stage. South Africans are hopeful that the plan will address the core issues impacting them especially the poor and working class. Some of the other issues that is expected to be on the table tonight is government’s plan to salvage the energy crisis, investor confidence, SAA among others.
Head of Economics at Wits University Professor Jannie Rossouw believes that for government to root out corruption, all government tenders need to be published for public scrutiny. Rossouw says the government needs to implement tough choices, especially where state-owned entities (SOEs) are concerned. He adds that government can longer afford to sustain SOEs and that it is sucking up funds needed.
The Presidential Economic Advisory Council has meanwhile urged his administration to freeze wage increases for 1.2 million public servants. They argue that this will cut government expenditure and help grow the economy. The Economic Advisory Council started on October 1 last year to identify structural problems and government policy decisions that have hobbled economic growth and investment.