Today MoneyMarketing attended the media briefing at which our Minister of Finance, Malusi Gigaba, introduced government’s inclusive economic growth action plan.
As part of the 14-point plan, the Minister said that National Treasury wished to reduce the issuance of government guarantees. It would also consider providing Eskom with “soft support” until the National Energy Regulator of SA made a decision on the 2018 tariff adjustment. Furthermore, the plan included selling noncore assets and the partial privatisation of SOEs to pull SA out of recession.
The plan also included issues around the Minerals and Petroleum Resources Development Act Amendment Bill, the Regulation of Land Holdings Bill as well as the licensing of the Postbank.
“Government has been deeply engaged with the issue of low economic growth and the recession, analysing its impact on social welfare, and considering an appropriate response,” Gigaba said.
“There have since been several engagements in Cabinet and amongst the Economic Cluster Ministers to craft an appropriate government response. “
The Minister said that President Jacob Zuma had hosted a meeting of several ministers on the 28th of June 2017.
“At the meeting, the President stressed the urgency of a coordinated response, and to this end an agreement was reached on implementation timelines for key structural reforms related to the nine-point plan.
“These would support both business and consumer confidence thereby laying the foundation for an economic recovery.”
Gigaba added that these interventions are the beginning of a response programme that will be unpacked in the MTBPS and the 2018 Budget. The President will monitor and coordinate implementation to ensure that timelines are met.
In its reaction, the DA described the inclusive growth action plan as a “disappointment” because it did not include “one big, bold, new idea capable of restoring business confidence and stimulating private sector investment in SA.”
The DA said Minister Gigaba did not have “the political will, or the political space, given the ongoing ‘civil war’ within the governing party ahead of the ANC’s 54th National Conference later this year, to implement the structural reforms necessary to boost economic growth and create jobs in SA.”