Charles Molele
Cabinet says it needs more time to consult before it can present a long-term economic recovery plan to boost the economy following disruptions by the COVID-19 pandemic, and the recent downgrading of South Africa by ratings agencies Moody’s and Fitch, respectively.
This follows the much-anticipated special Cabinet meeting on Wednesday to discuss the country’s post-pandemic economic recovery plan.
In a statement issued on Wednesday evening, acting spokesperson Phumla Williams said Cabinet resolved that further discussions and consultations are still required before the final consolidated plan is approved.
“Cabinet resolved that further discussions and consultations are still required before the final consolidated plan is approved to be shared with the nation,” Williams said in a Cabinet statement.
In his address to the nation last week, Ramaphosa said Cabinet would meet to discuss an economic recovery plan for the country to deal with the economic impact of COVID-19 crisis.
Analysts believe a substantial financial stimulus package from government is required to restore the economy when the COVID-19 restrictions are lifted.
Williams said Cabinet has also directed Public Enterprises Minister Pravin Gordhan to prepare an updated report on the South African Airways (SAA), for discussion at the upcoming meeting, expected to be held on Monday April 20.
Thereafter, Cabinet will finalize the country’s economic recovery plan before presenting it to the nation, according to Williams.
On Tuesday, SAA’s joint business rescue practitioners received a letter from the Department of Public Enterprises, rejecting the national carrier’s request for a R10 billion bailout.
Gordhan rejected the request, saying that government will not provide any further guarantees to SAA to facilitate borrowing.
“All the Cabinet clusters have been asked to work together to produce one consolidated document on key priorities of the country’s economic recovery plan, to be completed before the next Cabinet Meeting scheduled to take place on Monday, 20 April 2020,” said Williams.
Five presentations were received from the clusters: (1) Economic Sectors,
Investment, Employment and Infrastructure Development; (2) Governance, State
Capacity and Institutional Development; (3) Social Protection, Community and
Human Development; (4) International Cooperation, Trade and Security; and (5)
Justice, Crime Prevention and Security.
The presentations were a culmination of the work done by all the Cabinet
clusters, focusing on the country’s economic recovery as a consequence of the
COVID-19 pandemic, she said.
(Compiled by Inside Politics staff)
