In the light of what is recently happening in the country, officials in South Africa are trying to find a way out for the country’s economy. Minister of finance Enoch Godongwana, has stated during a parliament hearing on 8th September, that few reforms will be introduced in the country to stimulate economic growth.
The reforms are intending to involve all the South Africans in the economic recovery, by assisting local employers in attracting the best talents locally and globally by crafting
a critical skills list (CSL) which will improve local firm’s productivity and output and will eventually pay off in the long run for the nation’s wide economy.
Current situation
Local unrest was sparked after the imprisonment of the ex-president Jacob Zuma, who was found guilty for contempt of the court, this was followed by a nationwide series of disobedience that included public violence, property damage, and vandalism, the protestors have also expressed other socio-economic problems they experience, such as unemployment, increased inflation, and poverty.
The riots have also included blocking highways and shootings, which put the economy on a hiatus as tension was escalating at a fast pace, and local markets had to close temporarily, while several shops and markets were looted and destroyed.
Given the Covid-19 situation in the country in July, the riots have forced the mass vaccination facilities to suspend their activities in fear of being looted, which slowed down the vaccination rate and worsened the Covid-19 situation in the country.
New Visa Regulations
In an attempt to improve the local economy, local employers are encouraged to hire talents from abroad using the Critical Skills List program which provides easier entry requirements for foreign workers. The Ministry of Finance is cooperating with the Department of Home Affairs to update the critical skills list to provide further assistance, which will be published very soon.
Engineering, information technology, foreign-language speaking, and health care, are on top of the critical skills needed in the country, which enjoy the benefits of the facilitated requirements of entry to the country.
It is believed that these talents are critical for the productivity and success of local employers, and eventually for the wellbeing of the local economy, as the ministry aims to improve the current financial situation of the country given the current disturbances.
Expected Improvements
Attracting talents from abroad typically aims at improving local firms’ productivity, besides that, it is an indirect way to make foreign employees spend their income in South Africa, which means contributing to the local economy by paying taxes, paying rent, purchasing products and groceries in the local markets.
Therefore, it is expected to enhance the exchange rate of the South African Rand, coming from the activities of expats exchanging their money with the local currency. Such a move will most likely encourage people to start trading with reliable forex brokers in South Africa as the speculation for the South African Rand will most probably increase.
Economic reform is one of the demands of the public and might be an indicator that the government is making some effort to put the country in the right path towards other reforms that will hopefully put down the current disturbance in the country
Social reforms
In addition to that, president Cyril Ramaphosa has promised the population to ease the current Covid-19 restrictions if the mass vaccination rolls out at the intended rate, people will be able to move without lockdowns and relocate anytime without a curfew, as well as spending more for going in restaurants, cafe, cinemas, and other activities, and this will give the economy a huge boost.
The decline in the daily rate of infection, and increased rate of administered vaccines, will enable companies to resume working, and employers will be planning to re-staff their organizations, which will help against the unemployment rate, and will most likely put an end to the current disturbance in the country.
