BUSINESS DAY SPOTLIGHT
PODCAST | Economic news of the week: How will SA execute Cyril Ramaphosa’s economic recovery plan?
Host Mudiwa Gavaza is joined by Dawie Roodt, chief economist at the Efficient Group
In this edition of Business Day Spotlight, we are looking at President Cyril Ramaphosa’s economic recovery plan, delivered on Thursday in parliament.
Host Mudiwa Gavaza is joined by Dawie Roodt, chief economist at the Efficient Group, to discuss the issues.
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Ramaphosa announced an ambitious economic recovery and reconstruction plan that aims to embark on a mass employment programme, re-industrialise the economy and secure a reliable energy supply within two years, among other short-to-medium term targets.
The president said the state had committed R100bn over the next three years to create jobs through public and social employment as the labour market recovers.
Roodt says Ramaphosa struck an urgent tone, with his speech, showing that the government is concerned about the economy and trying to find ways to boost local production and employment.
Quite important is the president’s hardline stance against corruption, says Roodt, explaining that it is very important for the citizens to start trusting the government’s ability to responsibly manage the economy.
However, Roodt says he does not agree with all the measures put on the table by the state. The key concern is how the country will afford the plans it has set for itself. He also pointed out there wasn’t anything said about the funding of state owned enterprises in the speech, especially Eskom.
Roodt also discusses difference between saying the right things versus executing on plans set, how ratings agencies are likely to judge SA in the coming months, the expansion of the Covid-19 benefits by government and an outlook for the economy.
According to his estimation, Roodt says SA’s economy is likely to contract by over 10% in 2020. SA’s fiscal deficit is may reach 18% by the end of the year, with a debt to GDP ratio of 84%, he says.
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• Business Day Spotlight is a MultimediaLIVE production.
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