New economic transformation plan to create one million jobs

By Doug Mattushek - 28 August 2019Views : 988

A new document released by the National Treasury outlines some positive measures to curb unemployment and the stagnant economy.

The 75-page document, named “Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa”, aims to create over one million jobs and kickstart the economy.

The document proposes interventions such as lowering the fuel price, relaxing immigration measure to attract more skilled workers and allowing homes and businesses to feed power back into the grid.

"The combination of low growth and rising unemployment means that South Africa's economic trajectory is unsustainable," reads the document.

"Government should implement a series of growth reforms that promote economic transformation, support labour-intensive growth, and create a globally competitive economy.

"We start by highlighting five fundamental building blocks of sustainable long-run growth and then identify a series of specific and detailed reforms to raise potential growth.

"These growth reforms are organized according to the following themes: (i) modernizing network industries; (ii) lowering barriers to entry and addressing distorted patterns of ownership through increased competition and small business growth; (iii) prioritizing labour-intensive growth in sectors such as agriculture and services, including tourism; (iv) implementing focused and flexible industrial and trade policy; and (v) promoting export competitiveness and harnessing regional growth opportunities.

"We estimate the economy-wide impact of the proposed interventions over time based on when they can realistically be implemented, and find they can raise potential growth by 2–3 percentage points and create over one million job opportunities."

The treasury is expecting feedback on its proposals by September 15.