Cape Town – Outgoing Deputy Finance Minister David Masondo has reiterated the need for swift structural reforms to address South Africa’s economic growth crisis.
According to EWN, Speaking at the Operation Vulindlela conference in Rosebank, Masondo highlighted poor infrastructure, the energy crisis, inefficiencies in the logistics sector, and crime and corruption as key factors hindering economic growth.
At the Operation Vulindlela conference, David Masondo highlighted the urgency of structural reforms to revive SA’s economy. Key areas include energy liberalization, logistics improvements, and VISA regime adaptations for skills growth. #SATIED @Treasury_RSA @PresidencyZA pic.twitter.com/UaNPsXdpIt
— UNU-WIDER (@UNUWIDER) June 25, 2024
Despite long-standing government plans for reforms, slow progress has had significant negative impacts.
National Treasury and @PresidencyZA are hosting DAY ONE of the Operation Vulindlela conference. Speakers say the next Phase of OV should focus on intensifying the implementation of structural reforms in energy among other sectors, to grow the economy and create jobs. @UNUWIDER pic.twitter.com/p6P0r3p2El
— National Treasury RSA (@Treasury_RSA) June 25, 2024
“Our economy is not growing at the pace at which we all desire in order to reduce unemployment and poverty. It’s not growing at the pace which will enable us to generate efficient tax revenue in order to do all the things we have to do as government,” the report quoted Masondo as saying.
Masondo emphasised that the lack of economic growth affects everyone, warning that even those currently employed could face difficulties if the economy remains stagnant.
PHOTOS | @Treasury_RSA and @PresidencyZA host #OperationVulindlela Conference at Rosebank, Johannesburg.
Discussions at the conference focus on South Africa’s most urgent economic challenges and explore ways to deepen and broaden the economic reform agenda. pic.twitter.com/zPpem1rsvF
— South African Government (@GovernmentZA) June 25, 2024
Meanwhile, the Presidency is confident that the Government of National Unity (GNU) will not disrupt Operation Vulindlela, an initiative launched in 2020 to address issues in energy, logistics, and telecoms to boost economic growth and job creation.
Despite concerns about differing priorities among the 10 parties in the GNU, the head of project management in the presidency, Rudi Dicks, remains optimistic that the new administration will prioritise economic goals, EWN said in a separate report.
“I think that what we need to do is ensure there is alignment between the ministers and the work that we are doing. I don’t foresee any disruptions. This is important, this is for growth. At the end of the day, what we want to see is investment, we want to see growth, we want to see employment.
“And if structural reform programmes move us in that direction, as they have, then I think we’ll have a lot of ministers mobilise behind structural reform,” the report quoted Dicks as saying.
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Compiled by Betha Madhomu
