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Finance Minister Malusi Gigaba outlined the government’s inclusive economic plan of action following the recent release of data confirming an economic recession.
Gigaba presented the plan at the JSE in Sandton on Thursday, outlining a set timeline of 14 key areas of economic outlook and growth prospects.
Gigaba said the economic growth plan was a response to slow economic growth and increasing government debt.
“The global economy presents opportunities, including growth in some of our major trading partners, a recovery in commodity prices, and strong capital inflows into emerging markets. Let’s take advantage of these opportunities,” national Treasury said in a statement.
Gigaba presented the following 14 key areas of intervention:
1. Fiscal policy
The government will finalise an infrastructure budget facility and a sustainable wage agreement as well as by October and February 2018 respectively.
2. Financial sector and tax policy
The financial sector summit will be convened by December to quantify transformation targets, including for low-income housing and transformational agriculture.
The minister also said that the government would implement the Twin Peaks legislation in order to bring down banking costs. This would be done by February 2018.
The finance ministry would also work with the trade and industry department on targeted debt relief for the “most vulnerable” (for example in cases of reckless lending).
3. Leverage public procurement
Preferential Procurement Regulations, which took effect on April 1, will be implemented by July.
The Public Procurement Bill is set to be finalised by March 2018.
4. Recapitalisation of state-owned entities and government guarantees
Strengthen the state-owned entities’ balance sheets by conducting detailed audits of non-strategic assets. This is to be completed by March 2018.
5. Broader state-owned entity reforms
By March 2018, government will implement the private sector participation framework and the remuneration framework.
It will also finalise the board appointment framework,
table a draft of the Shareholder Bill, and implement a framework for the determination and costing of developmental mandates.
6. Private sector participation framework
The ministry will engage other government departments on the private sector participation framework and decide whether sector-specific frameworks are needed. Both of must be implemented by October and November respectively.
7. Costing developmental mandates
Gigaba is to consult state-owned entities on costing developmental mandates by August and roll-out the template for inclusion in the 2018 corporate plans by September.
8. Energy
The minister of energy is to finalise the lowest possible cost Integrated Energy Plan and Integrated Resource Plan by February 2018.
Eskom will need to consult the national energy regulator regarding its “hardship” in July.
9. South African Airways
The appointment of a new chief executive for the national carrier must be finalised by the end of this month.
A five-year turnaround plan for the airline must be finalised and implemented, with the finance minister by December 2019.
10. Telecommunications
By the end of this month, the Competition Commission must be directed to investigate the high cost of data in the country.
SA Connect Broadband programme’s phase one roll-out is to begin in August.
11. Postbank licensing
Amendment of the enabling legislation for licensing of Postbank to be amended by December this year.
12. Minerals and Petroleum Resources Development Act Amendment Bill
The amendment bill will be finalised by the end of the year “in a manner that reflects the inputs of civil society, labour and industry solicited through the public consultation process”.
13. Broad-based socioeconomic empowerment charter for the mining and minerals industry
More engagement must be conducted with civil society, labour and industry.
No specific deadline has been outlined because Gigaba said that the Charter had already been gazetted.
14. Regulation of Land Holdings Bill
The minister of rural development and land reform must table the Regulation of Land Holdings Bill in Parliament by October.
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