Ramaphosa’s economic recovery plan gets the green light from business, labour


* *The National Economic Development and Labour Council has agreed on

an action plan for the country’s economic recovery.

* *President Cyril Ramaphosa met with the council on Tuesday.

* *Details of the plan will be announced once it is finalised by Cabinet.

The National Economic Development and Labour Council has agreed to an

economic recovery plan for South Africa.

According to a statement issued by the Presidency on Tuesday, following

a meeting between President Cyril Ramaphosa and Nedlac – a body

comprised of representatives of government, business, labour and

community – the details of the plan will be announced once it is

finalised by Cabinet.

The country’s economy is set to contract anywhere between 7% and 13%

this year due to the damaging impact of the lockdown that was instituted

to curb the spread of Covid-19. Most recent data from Stats SA showed

that the economy contracted by 51% quarter on quarteron

an annualised basis as a result of the lockdown, which saw economic

activity grind to a halt for five weeks.

The country has had to borrow from multilateral institutions such as the

International Monetary Fund, the African Development Bank and the New

Development Bank, in order to fund responses to the pandemic as well as

buoy the economy.

“The social partners’ action plan is founded on significant convergence

on what needs to be done to set the economy on a new, accelerated,

inclusive and transformative growth trajectory.

“Social partners have identified priority areas for rebuilding the

economy as well as structural reforms and other programmes which will

enable sustainable and inclusive growth with an intensive focus on job

creation,” read the statement from the Presidency.


Notably, Nedlac agreed on a social compact to mobilise funding to

address Eskom’s financial crisis “in a sustainable manner”, according to

the statement. Eskom is facing a growing debt burden which currently

stands at some R480 billion. It’s been battling with operational

challenges, impacting its ability to supply power with detrimental

effects on business confidence and economic growth.

Commenting on the agreement and the commitments made by social partners

to implement the plan, the president said it “is a great achievement

that rises to the challenge of the moment”.



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