MARSHALL PLAN FOR TURNAROUND
CYRIL RAMAPHOSA: Future hinges on balancing demand stimulus with public-finance control
Steps must be taken to restore confidence and remove obstacles to investment to pave way for job creation
As SA works to turn its economy around, it should balance two potentially competing objectives: it should stimulate demand to increase economic activity and bring its public finances under control to avoid a debt trap and the related loss of policy sovereignty. If the country can boost demand in the economy, through restoring confidence and removing obstacles to investment, it will begin to create more jobs, improve consumer confidence and lay fertile ground for further investments. SA should also increase the number of foreign tourists and expand the quantity and quality of exports to a wider range of trading partners. It is imperative that the country begins to achieve increased levels of mining exploration and investment, as this will assist it in creating jobs and boosting export revenues. After years of de-industrialisation, the manufacturing sector needs specific support measures. The country should improve its tax incentives for research and development, energy efficiency, sm...