Economists have called on President Cyril Ramaphosa to speak less and instead make bold decisions for the country’s economy to recover.
They acknowledge there are no easy solutions to the cumulative pressures of high unemployment, poverty, and inequality but point out that instead of showing commitment to addressing these, Ramaphosa and his Cabinet have been sitting on the fence.
The president will deliver the State of the Nation Address (Sona) on Thursday night where reference will be made to economic reconstruction and recovery. However, the experts warn that so far, only a hollow plan has been on offer.
Economic reconstruction and recovery, building a new economy to unleash South Africa’s true potential, the creation of a sustainable, resilient and inclusive economy, industrial base for job creation, macroeconomic interventions – these are just some of the broad concepts that have featured in Ramaphosa’s Sona since he took to office.
With the cost of living continuing to spiral out of control, the reality is that none of these commitments have actually delivered the goods.
The Centre for Development and Enterprise’s executive director, Ann Bernstein, said that this was because the sixth administration’s strategy was to do nothing.
“Everybody is tired of listening to the president talk. What is needed are some very different actions. We need some new Cabinet members, some fundamental choices about the economic strategy, that we are going to bring the private sector in and we are going to do it as a matter of urgency to help on the railways and rebuilding the railways and trains – everything to do with the ports – much more on electrical power, the roads – we need a decision on the e-tolls. Some key decisions need to be made and I think the president’s credibility is in serious doubt at the moment and everyone is really tired of words,” Bernstein said.
University of Johannesburg business and economics professor, Daniel Meyer, added that there was no capacity or commitment in government.
“The issues we need to resolve: the first one is Eskom, it is the growth limiter and it is killing us all. COVID-19 may be under control, there could be another surprise coming but it is currently under control. We need the president to make more decisive decisions. We have everything in the air and we have this policy uncertainty, which is a killer for the economy,” Meyer said.
Business Unity South Africa wants the president to make a proclamation on the urgent need for structural economic reforms backed by policy certainty and real intervention to make it easier to do business.
-EWN
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