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· Business For South Africa ( B4SA) that represents a majority of South African businesses released a 12-point plan to accelerate the country’s economic recovery
· The organization says that the plan that calls for policy interventions, could increase GDP by R1 trillion, create up to 1.5 million jobs and increase tax revenues by R100 billion per annum
Business For South Africa ( B4SA) that represents a majority of South African businesses released a 12-point plan to accelerate the country’s economic recovery. The organization says that the plan that calls for policy interventions, could increase GDP by R1 trillion, create up to 1.5 million jobs and increase tax revenues by R100 billion per annum.
Some of the pitch points of the organization include securing affordable electricity supply, fast tracking the green economy, expanding ports, labor reforms and accelerating e-commerce. According to it, the funds needed for economic recovery is R.4 trillion over the next three year, pushing public sector debt from R4 trillion to R6.4 trillion.
The organization says that the funding cannot be met alone by domestic sources. The private sector could step in to help fund economic infrastructure, which would result in faster and more sustainable economic growth. This could also reduce pressure on state coffers. South Africa can help channelize about US $10 trillion from international markets, including Sovereign Wealth Funds and Development Finance Institutions, etc.
In the absence of growth enhancing structural reforms, the organization says that budget deficits are expected to remain high and government debt is expected to exceed 100% of GDP in 2023.
