Opposition parties are skeptical about the economic stimulus and recovery package unveiled by President Cyril Ramaphosa on Friday. Both the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) say it is based on existing macro-economic policies.
The EFF says the package will only promote the interests of big business.
DA spokesperson on Finance David Maynier doubts that the plan will work,”I think the problem with the stimulus and recovery plan was that it is framed within the existing economic policy whereas what we needed was something new outside the existing economic policy suite. Something for example in the small business environment, perhaps taking small business that are employing a fewer than 250 employees and exempting them from labour laws other than basic conditions of employment act and making it easier for small business to employ more people in SA.”
However, business says it’s ready to support government in implementing the package. One of the plan’s main features is R400 billion for infrastructure development to be financed by private-public partnership. Chief Operations Officer at Business Leadership South Africa, Busi Mavuso, says they’re willing to help with this as well as with the skills that are badly needed in the public sector.
“There is going to be funding that’s going to come in from the private sector, so this R400 billion fund, private sector is going to come in so far as that is concerned. We have said that we are ready to deploy the necessary skills in ensuring that this works. We have said that in as far as the municipalities are concerned, you know the delivery thereof, because when you look at municipalities, you will know that it is at the service delivery level where all hell breaks loose as it were. When you look at it really I think it’s a lack of skills. So business is sitting with those skills and we’ve said we stand ready to assist.”
