There is no doubt that the political arena in South Africa has been lively and quite unpredictable in recent months under the leadership of governing party, the African National Congress (ANC). In late 2017, the party elected it’s new leadership.
The election of President of the ANC, Cyril Ramaphosa resulted in a strengthening of the country’s currency, possibly indicating increased investor confidence.
Despite this, Ramaphosa faces the mammoth task of resuscitating the South African economy if the ANC is elected into power in the upcoming national elections.
In addition to being the country’s Deputy President, Ramaphosa is known as a multi-millionaire and savvy businessman. It’s in this context that many South Africans and international investors are expecting positive economic changes for South Africa following Ramaphosa’s election.
How does Ramaphosa plan to save South Africa’s economy?
There is no doubt that Ramaphosa faces an uphill battle in efforts to restore investor confidence in South Africa. With the numerous downgrades by ratings agencies, the struggling currency, staggering levels of unemployment and declines in growth, Ramaphosa’s plan will have extensive ground to cover.
Ramaphosa’s plan to save South Africa’s economy includes:
- Promote growth
Under Ramaphosa’s stewardship, the government will focus on promoting economic growth.
- Improve investor confidence
A priority will be to restore investor confidence in South Africa.
- Tackle the 28% unemployment rate
The disheartening unemployment rates will be a key focus. Government will have to find innovative ways of creating sustainable employment opportunities for unemployed individuals. This will include the establishment of a youth employment program.
- Provide greater policy certainty for the mining industry
- Resources will be used for development instead of servicing debt
- Plans to escalate the transfer of ownership and control of the economy to black South Africans
- Promotion of competition in the banking industry
- Review the cost of doing business
- Establishment of a Presidential Panel to root out corruption
- Ensure proper governance of state companies