Finance Minister Malusi Gigaba discussed a plan on Thursday aimed at increasing confidence in the country’s economy.
Briefing the media while speaking at the Johannesburg Stock Exchange (JSE), the minister explained that the inclusive strategy represented the culmination of engagements and discussions with credit rating agencies and both local and international investors.
“We’ve heard the issues they have raised and we have applied our minds to what we need to do in order to restore our investment grade over a period of time to stave off any further downgrade and to reignite growth in the economy by boosting confidence and investments,” said Minister Gigaba.
This comes after a decrease in local consumer confidence was seen for this quarter from -4 points to -9 points. Almost reaching South Africa’s 2015 low-point of -15.
The country recently went through a credit-downgrade which subsequently brought on a technical, yet potentially damning, recession.
Gigaba says the details of the finalised plan have not been shared with rating agencies yet, but he remains confident that they will welcomed regardless.
“We had made a commitment, though they don’t know the detail. It may not be a perfect plan but it is detailed enough to inspire confidence,” he said.
He assured the media that government had approached finding a solution to the country’s low economic growth rate with utmost importance and commitment.
This has led to several engagements in Cabinet and amongst the Economic Cluster Ministers to craft an appropriate government response.
The growth action plan, with several interventions and timelines, will be unpacked at the upcoming Medium-Term Budget Policy Statement (MTBPS) in October and the 2018 Budget, Minister Gigaba.
The plan will consist of 14 areas of intervention from sustainable wage agreements to recapitalisation of State-Owned Entities (SOEs).
Gigaba has promised that all deadlines for the plan – which is set to be implemented in October this year – will be met.
“We need to work very hard. Treasury will play its part in monitoring this and providing assistance to the Presidency in terms of monitoring, so that we report timeously to Cabinet about the implementation of these programmes”, said Gigaba.