President Cyril Ramaphosa has announced a raft of policy reform plans, which include re-prioritizing R45 billion of public spending to boost economic growth and create jobs.
He was addressing the media at the Union Buildings in Pretoria, where he outlined the details of his ambitious plan to stimulate the ailing economy.
Ramaphosa says there’s no room for increased spending or borrowing.
He says the central element of the economic stimulus and recovery plan is the re-prioritization of spending towards activities that have the greatest impact on economic growth, domestic demand and job creation with a particular emphasis on township and rural economies but also affecting women and the youth as well.
He says; “Our government has limited fiscal space to increase spending or borrowing and it is imperative that we make sure that the resources that we do have are used to the greatest effect.”
In addition to that Ramaphosa says government has started to review various administered tarrifs for commodities such as electricity.
He says the aim of the review is to make South Africa more competitive.
“To reduce the cost of doing business and to boost export, government has begun a review of administrative prices starting with electricity, ports and rail tariffs. These have been raised as matters of great concern by a number of players. We are now beginning the process of looking at all these.”
He also announced a review of legislation around visas. He says within the next few months amendments will be made to regulations on the travel of minors, and a list of countries requiring visas to enter South Africa, which have negatively affected tourism.
“These reforms include immediate changes that were approved by cabinet to South Africa’s visa architecture or regime. These measures have a huge potential to boost tourism and to make business travel into our country a lot more conducive. Tourism continues to be a great job creator.”