The stimulus package announced by pres. Cyril Ramaphosa is positive and very welcome as it is focused on alleviating South Africa's economic growth and unemployment problem. However, it should also be seen in context.
Firstly, it is meant to kick-start the economy - and not to solve all of the country's economic problems, as this is a longer term process.
Secondly, it must not be seen in isolation, but in conjunction with both the investment conference that will be held at the end of October and the medium term budget, which will contain more details on the reprioritisation of government expenditure. Combined, this will provide a more informed view of the economy's growth and job creation prospects over the next five years.
It is, however, pleasing that government has recognised that the country has problems - and that it will deal with such problems.
It is a known fact that South Africa is in dire need of investments - especially in infrastructure - for growth and job creation. The stimulus package and following investment conference will gear up such investments - and give hope to despondent job seekers. It should, if successful in creating jobs, also reduce the crime rate.
What should be avoided is a new bout of corruption in the awarding of tenders when targeting small businesses to become involved in the infrastructure jobs. Also, the companies that win the tenders must be able to actually deliver - and deliver on time (and prevent big cost overruns) in order to improve service delivery.
It is heartening that government is moving closer to an environment of investment certainty. The new Mining Charter as well as a confidence-building land reform process will go a long way to remove uncertainties, but it is important that this is completed as quick as possible in order not to stall the investment process.
For further enquiries or to set up a personal interview, contact
Andre Venter at 083 251 3274.