President Jacob Zuma says government will reduce policy uncertainty in order to boost economic growth.
“To further respond to the challenges we face, we have decided on some short-term interventions, in addition to implementing the nine point plan. One of these is to reduce policy uncertainty and shore up confidence in the government’s ability to deliver on its promise of boosting growth,” Zuma said during a press briefing at the union buildings.
“More than that, we need some concrete initiatives which ensure a turn-around in our economic fortunes.”
Zuma was briefing the media following a meeting between government, labour and the business sector. The collaboration between the three follows an engagement in February between chief executive officers of major companies and captains of industry to discuss ways in which they could work together to reignite economic growth and create jobs.
Zuma said the engagement had come up with initiatives that included the establishment of a joint private and public sector fund for Small Business Support with roughly 50:50 contributions by the partners.
“The focus is to provide ‘venture’ capital-type funding and mentoring to the target groups, especially black entrepreneurs. To accelerate inclusive growth, we must expand investment. In this regard, the model we used for renewable Independent Power Producers offers valuable lessons. As part of scaling up investment we will move with speed to extend the model to coal and gas as I had announced in the State of the Nation Address in February. We have agreed to expand government and private sector co-investment in infrastructure,” said Zuma.
He added that they were exploring appropriate mechanisms of strengthening state owned enterprises so that they could reduce the risk they pose to the fiscus so that they can play a stronger role in driving development.
“The credit ratings work stream will identify potential areas of reforms and interventions to avert further credit rating downgrades. South Africa is now beginning to realise how we can work together as Team South Africa in the interest of our country and people,” said Zuma.