‘Stimulus package must be activated immediately’ to lift growth rate, says Enoch Godongwana
The ANC official called on the government to implement the 14 confidence-boosting measures announced by Malusi Gigaba when he was finance minister
The ANC has called for the immediate and "aggressive" implementation of an economic stimulus plan.
This comes after the growth figures on Tuesday that indicated SA was in a recession.
"The ANC-led government must take immediate, concrete and bold steps to lift the rate of growth and its inclusivity by activating macroeconomic policy tools, institutional efficiencies and specific sector interventions as central instruments to mitigate the effects of a contraction in economic activity," the chair of the ANC’ subcommittee on economic transformation, Enoch Godongwana said.
"Specifically, the stimulus package must be activated immediately."
Economists have warned that the government has no room in the fiscus to boost the economy. The ANC has also remained mum about how the stimulus package would be financed.
Among the policy interventions that the party proposed are tax credits for companies that "invest in sustainable job creation", an increase in localisation procurement spend, cutting red tape and improving infrastructure maintenance.
The party also called for "agricultural support packages" to "boost economic growth and food security" and a boost to the extended public works programmes, improving trade with Africa and bringing down the cost of data.
"These interventions do not necessarily require the development of new policies, but rather the effective implementation of existing ones," Godongwana said. He called on the government to implement the 14 confidence-boosting measures announced by Malusi Gigaba when he was finance minister.
Data from Statistics SA on Tuesday came as a shock to the market. SA’s economy contracted 0.7% in the three months to the end of June, following a dismal performance in the first quarter, which was revised up from a 2.2% contraction to 2.6%.
Two months of negative growth is an indication that the economy is in recession.