South Africa’s Economic Reconstruction and Recovery Plan will be focused on four key interventions. These include job creation, improving energy generation capacity, infrastructure investment and a drive for industrial growth.
Speaking during a joint sitting of the two houses of Parliament, President Cyril Ramaphosa outlined the new plan, which aims to sustainably expedite the recovery of South Africa’s economy that was deeply affected by the COVID-19 pandemic.
The plan is predicted to boost the country’s economic growth by about 3% over the next decade.
During his address, Ramaphosa said that the new recovery plan will focus on job creation, and will be based on a major infrastructure programme and large-scale employment stimulus, coupled with an intensive localisation drive and industrial expansion.
“Our recovery will be propelled by swift reforms to unleash the potential of the economy, and supported by an efficient state that is committed to clean governance. It will be transformative. It will be inclusive,” said Ramaphosa.
The first leg of the plan involves a massive rollout of infrastructure across the country. The Infrastructure Fund will provide R100-billion in catalytic finance over the next decade, leveraging as much as R1-trillion in new investment for strategic infrastructure projects.
The government has gazetted 18 housing projects worth R130-billion, which will produce over 19 000 housing units.
The commuter rail network, like Cape Town’s Central Line, will be modernised and refurbished over the next six months.
The second leg is focused on expanding energy generation capacity. The implementation of Integrated Resource Plan will be accelerated to provide a substantial increase in the contribution of renewable energy sources, battery storage and gas technology. This should bring around 14 000 MW of new generation capacity into the system by 2022.
The third key intervention is focused on an employment stimulus scheme to create jobs. R100-billion will be invested to create jobs as labour market recovers over the next three years, starting with 800 000 job opportunities created in the months ahead.
The COVID-19 grant has been extended by a further three months
The fourth leg of the plan is to drive for industrial growth. Government aims to reverse the decline of the local manufacturing sector and promote re-industrialisation through deeper levels of localisation and export.
“To place our economy on a new trajectory, we are going to support a massive growth in local production and make South African exports much more competitive.”
Read the full speech HERE.
Picture: screenshot from livestream