Home South Africa Cyril Ramaphosa signals bad omen for economic recovery

Cyril Ramaphosa signals bad omen for economic recovery

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South African president Cyril Ramaphosa, predicted a long and difficult economic recovery process in the wake of COVID-19 lockdown, this was revealed through his weekly newsletter released on Monday, 27 July 2020.
‘As several parts of our country experience a surge in coronavirus infections, we are also confronted with the economic damage of this pandemic,” said Ramaphosa.
The South African government is said to have tabled measures to reduce negative impacts of the pandemic to the economy, but the tabled measures have not matched the high unprecedented level of the spread of COVID-19, as the pandemic wreaks havoc causing most of the sectors of the economy to close.
“The most recent economic indicators show a drastic decline in economic activity and in confidence. Despite the support measures we have put in place, businesses are being forced to close and jobs are being lost. The path to recovery will be long and difficult,” added Ramaphosa.
New economic recovery plans are being drafted, to match the effects of the pandemic to the economy.
“In the coming weeks, we will work with our social partners to finalise an economic recovery programme that brings together the best of all the various proposals. The most important part of that programme must be the protection and the creation of jobs,” highlighted Ramaphosa.
Ramaphosa acknowledged that unemployment rate is increasing and will definitely continue to increase in face of COVID-19.
“It is untenable, and unacceptable, to live with an unemployment rate of 30 percent, which will soon increase. It is also impossible to build an economy built on inequality…. Analysts have estimated that this pandemic will cost the country millions of jobs. In the supplementary budget presented last month, government made provision for job preservation and job creation efforts,” noted Ramaphosa.
“With the advent of the coronavirus, we now need to pursue new sources of growth within a fundamentally different context,” said Ramaphosa
Despite the pandemic affecting most of economic growth plans, some plans remain relevant.
“Many of the areas we had identified before remain relevant and urgent, such as a growing small and medium enterprise sector and an agricultural sector that delivers food security. Some sectors have taken on a new significance,” added Ramaphosa
More so Ramaphosa noted the economic recovery plans will be spearheaded by infrastructure development and maintenance.
“There is now general consensus that our recovery should be led by infrastructure development and maintenance,” Ramaphosa
As of Sunday the 26th, a cumulative total of 445 433 confirmed COVID-19 cases in South Africa had been recorded with 11 245 new cases identified.
Liberty Pazvakawambwa SADC News Correspondent.

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