Good policies needed to help economy recover: Economist

Chief economist at Econometrix, Azar Jamine, says the answer to a post-COVID-19 economic recovery lies in the political will to arrest corruption and implement appropriate policies.

He was commenting following government’s recent presentation of a draft economic recovery proposal to the National Economic and Development Labour Council (Nedlac).

The proposal has received a significant share of criticism from some analysts and sections of business for its alleged vagueness and lack of tangible timelines.

The draft document sets out a three-phased priority plan for SOEs and energy sector reform, a massive healthcare response and the development of employment and job incentives among others.

Jammine says, “Unfortunately there seems to be a completed dichotomy with the ruling party as whether or not they support the kind of reforms that are being recommended by the National Treasury and the President [Cyril Ramaphosa] himself. And it is this factionalism influence that is preventing decisions being taken to actually go ahead with some on these reforms and so nothing gets done.”

Implementation of government strategies

Meanwhile, Trade and Industrial Trade Policies Executive Director Saul Levin says government now needs to start implementing economic policies that will help improve the lives of South Africans and strengthen the economy.

He says one focal point, among others, is the development of infrastructure in rural communities, in informal settlements and townships.

Levin says small businesses also need to be provided with funding to run their businesses.

He adds that the current measures to prevent loss of income such as the Temporal Employee Relief Scheme have been critical in preventing retrenchments at some companies.

The video below, is a reaction to President Cyril Ramaphosa’s announcement:

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