Ramaphosa’s stimulus plan: just what the economy ordered
SA’s economic recovery plan removes some obvious blocks to investment but a policy overhaul is needed to sustain rapid growth
President Cyril Ramaphosa’s economic stimulus plan is just what the economy ordered and just what business has been waiting for. Almost all organised business’s immediate demands were met, including the promise of accelerated infrastructure spending; joint project execution; lower logistics costs; a simplified visa regime that welcomes highly skilled immigrants; and telecoms and mining reform. These reforms should boost business confidence and stimulate growth and investment if implemented urgently and with vigour. Not only does the package show the government is finally listening to business, but that it has given up the notion that the state has the capacity to fix the economy on its own. Under former president Jacob Zuma the state regarded business as an irritant; under Ramaphosa the private sector is being embraced as a partner. To achieve this, R400bn (about half of existing medium-term public infrastructure spending) will be centralised in the presidency in a new SA Infrastruc...
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