The President stated that “there is broad support for the continuation of economic reforms” among political parties, given that elections have now passed and the makeup of the government has not yet been determined.
It is imperative that the reform momentum be maintained and sustained, regardless of the shape or makeup of the future administration. Even if the reform process has taken us a long way, much more work needs to be done to spark economic growth. We wouldn’t be able to maintain the good momentum we’ve built and would have to start over from scratch.
“Our top priority as a nation at this critical juncture must continue to be eliminating poverty and inequality as well as cutting unemployment. Without increasing investment in our economy and speeding up growth, we will not be able to solve these issues and enhance the lives of our people,” he stated.
The President clarified that since assuming office, the sixth administration has prioritized economic development, transformation, and job creation. This has been made possible by a number of economic reforms implemented under Operation Vulindlela in the areas of power, water, and logistics.
We have implemented extensive reforms in the energy, logistics, water sector, and telecommunications industries since these sectors are essential to economic growth. Among these reforms is a complete reorganization of the energy sector to facilitate increased investment in the production of power, stability, and efficiency, as well as the introduction of a more competitive electrical market.
“We’ve finished the auction of highly sought-after broadband spectrum, allowed open access to the freight rail network, and included the private sector in the management of port terminals.” The state must continue to play a strategic role in the construction and ownership of public infrastructure in the interest of the people, he said, even while we recognize the benefits of public-private partnerships.
In addition, changes were made to the visa policy to draw in the essential talent required to strengthen the country’s economy and expand its tourist industry.
Investor confidence has increased as a result of the structural reforms’ gradual implementation. As a result, we have been able to draw investment into the economy across a variety of industries, even during a protracted period of load shedding. According to President Ramaphosa, the structural reform effort has yielded observable outcomes and established the foundation for long-term, sustainable growth.
Healing and Reconstruction
While acknowledging that some measures may take some time to take effect, the president gave the assurance that “the process of recovery and rebuilding is well underway.”
The industry for electricity is one such instance. Rooftop solar energy has increased, more new energy projects are being connected to the grid, and additional generation capacity is being purchased more quickly as a result of the Energy Action Plan that we launched in 2022.
The severity of load shedding has decreased as a result of these advancements and Eskom’s continuous efforts to enhance power plant maintenance. According to him, these reforms must go hand in hand with initiatives to promote economic inclusion, such as public employment programs, skill development, and tackling geographical inequality.
Higher economic growth may be attained by combining “structural reforms, increased investment, and sound macroeconomic management,” according to President Ramaphosa.
“As the Minister of Finance pointed out in this year’s Budget Speech, effective initiatives to strengthen the state’s capacity, finish structural reforms, and improve the fiscal position will all work together to lower borrowing costs, boost confidence, boost investment and employment, and quicken economic growth.
According to National Treasury modeling, the effective execution of important changes may boost GDP growth to above 3% annually, increase revenue by an additional R600 billion, and generate a sizable number of new employment over a ten-year period.
The BER [Bureau for Economic Research] analysis, which demonstrates that maintaining the reform path could boost growth, supports this strategy. This would herald in a new age of expanding wealth for everyone and begin to make a significant dent in our unemployment rate,” he stated.
The President urged all social groups and political parties to collaborate in order to achieve economic expansion and employment creation.
“We are firmly on course to realizing greater economic growth and creating more jobs by strengthening our partnership as government, business, and labor, accelerating structural reform, and continuing the work to strengthen state capacity and improve the operation of state-owned enterprises.”
“All parties must cooperate to maintain the momentum of reform, growth, and transformation as the nation gets ready for a new democratic administration. We can create a growing, inclusive economy that serves all South Africans with a stable, capable administration dedicated to economic reform, according to President Ramaphosa.
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