Finance Minister Tito Mboweni has unveiled a blueprint to reignite growth in the economy, create 1 million jobs and improve the levels of investments.
In the paper, the National Treasury said the reforms in the economy would result in the economy growing at between 2% and 3%.
The South African economy has been sluggish over the last 10 years. It has been growing at less than 2% in the past decade and in the last five years, growth has remained below 1%.
The last time the economy grew at about 5% was in 2008.
One of the proposals from the paper from the National Treasury, which will be sent for public comment, is to create labor-intensive industries to create jobs.
South Africa has seen a jobs bloodbaths in the past few years with the mining sector being one of the most affected industries.
Construction alone has lost over 140 000 jobs.
A few weeks ago, Statistics South Africa released new unemployment figures showing unemployment has increased to 29%.
In its abstract, the paper outlines a few interventions in the economy.
“The combination of low growth and rising unemployment means that South Africa’s economic trajectory is unsustainable,” states the paper.
“Government should implement a series of growth reforms that promote economic transformation, support labor-intensive growth, and create a globally competitive economy,” it says.
“We start by highlighting five fundamental building blocks of sustainable long-run growth and then identify a series of specific and detailed reforms to raise potential growth,” it adds.
It said the reforms needed in the economy were modernizing network industries, lowering entry barriers in the economy and increasing competition, prioritizing labor-intensive growth, implementing flexible industrial policy and promoting export competition.
The paper says once these interventions and reforms are implemented the economy would grow between 2% and 3%.
This would create 1 million jobs.