Ramaphosa vows to overhaul economy

President Cyril Ramaphosa made the announcement during the annual State of the Nation Address in Cape Town on Thursday evening.  

Parliamentarians and dignitaries sat through a 2-hour long speech by Ramaphosa at the City Hall, a change in venue triggered by the fire that gutted parts of Parliament last month.

It’s the first time in the country’s democratic history that the joint sitting of Parliament has not been held at the National Assembly chambers.  

Ramaphosa used the opportunity to take the country into his confidence on the government’s overarching plans to kickstart the country’s economy following months of stagnation. 

During his delivery, Ramaphosa vowed several sweeping measures.

“We are now ready to enter a new phase in our management of the pandemic,” he told the nation.  

“It is our intention to end the national state of disaster as soon as we have finalised other measures under the National Health Act and other legislation to contain the pandemic. 

“Nearly all restrictions on economic and social activity have already been lifted,” Ramaphosa added. 

He believes the further easing of restrictions will help bring the country’s economy out of the current lull. 

“We are working together to revitalise our economy and end the inequality and injustice that impedes our progress. 

“We have given ourselves 100 days to finalise a comprehensive social compact to grow our economy, create jobs and combat hunger,” Ramaphosa said. 

Plans include ensuring efficient ports and railways, attracting skilled immigrants, attracting investors and ensuring a reliable energy supply. 

“When electricity supply cannot be guaranteed, when railways and ports are inefficient, when innovation is held back by a scarcity of broadband spectrum, when water quality deteriorates, companies are reluctant to invest and the economy cannot function properly,” said Ramaphosa.  

He vowed to see through several new energy generation projects in the next couple of years, including an estimated 4000 MW from embedded generation projects in the mining sector, over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme, 2600 MW from Bid Window 5, up to 800 MW from risk mitigation power projects and some 2600 MW from Bid Window 6 of the renewal energy programme. 

Despite previous commitments on job creation, the country’s unemployment rate sits above 34%. 

“If there is one thing we all agree on, it is that the present situation – of deep poverty, unemployment and inequality – is unacceptable and unsustainable,” said Ramaphosa. 

 “We have been taking extraordinary measures to enable businesses to grow and create jobs alongside expanded public employment and social protection. We all know that government does not create jobs; business creates jobs.  

“The key task of government is to create the conditions that will enable the private sector – both big and small – to emerge, to grow, to access new markets, to create new products, and to hire more employees.”

Ramaphosa admitted tackling the country’s woes would require a disciplined administration.

 “We are working together to revitalise our economy and end the inequality and injustice that impedes our progress. We are standing together against corruption and to ensure that those who are responsible for state capture are punished for their crimes,” he vowed.  

“We are rebuilding the state and restoring trust and pride in public institutions.  

“None of our efforts to revive our economy will succeed if we do not tackle the scourge of corruption once and for all. 

“Let us forge a new consensus to confront a new reality, a consensus that unites us behind our shared determination to reform our economy and rebuild our institutions.” 

Ramaphosa’s plans are expected to rack up a high bill, with billions earmarked in the fiscus for several projects.