29 Aug 2019
South Africa’s National Treasury has revealed goals of boosting economic growth in the country, while improving the employment rate through several measures such as cutting red tape for business and simplifying visa rules for tourism purposes, My Broadband reports.
The proposed reforms have the ability to boost the average economic growth rate by 2 to 3 percentage points and create one million jobs over the course of ten years, according to the Treasury.
Additionally, other proposals consist of selling power plants owned by state utility Eskom Holdings SOC Ltd. and the implementation of new regulations that would allow households and companies to sell excess electricity produced back to the national grid.
At the moment, growth for the rest of the year is forecast to be well away from what is needed. According to the Treasury, “deliberate and concrete action” would be required to improve the current economic state. Some of the steps required would include bettering the education system and public transport, introducing programs for youth employment, and reducing a skills shortage by simplifying immigration requirements.
The Treasury went on to say that the country also needs “a stable macroeconomic policy framework underpinned by a flexible exchange rate, inflation targeting, and credible and sustainable fiscal policy.”
“Low and stable inflation and a more sustainable fiscal trajectory reduces uncertainty, lowers borrowing costs across the economy, anchors returns expectations for investments and increases business confidence — all of which boost productivity.”
The Treasury called for the government to alter banking and telecommunications regulations to stimulate competition and boost support for the agriculture, manufacturing and tourism industries – among other proposals.