Question

The world bank predicts that SA s economic growth rate will be a meagre 1.1% in 2018.Acording to Statistics South Africa,our population growth rate is 1.6% meaning that GDP/capita will continue to shrink in 2018.

Question

Imagine you are requested to write a memorandum to advise recently-elected President Cyril Ramaphosa on what to do to turn the DA economy around.What would you suggest

should be his policy priorities and what short and long term steps would you advice him to take to create a bigger,stronger and better economy.?Make specific reference in your answer to the significance of National Development Programme, importance of policy certainty , as well as the role of investor confidence in achieving better outcome for aal

South Africans

Answer 1

To: Cyril Ramaphosa, President
The Republic of South Africa

Subject: Suggestions for improving the state of the South African economy.

The World Bank's growth forecast for South Africa in 2018 is a meagre 1.1 per cent.  The population of South Africa is projected to grow at 1.6 per cent. It means that the GDP per capita will continue to decline, and that is not a good sign for us!

The challenges to the economy are aplenty. To overcome them, I present some suggestions. Firstly, the government should work with the South African Reserve Bank in tandem to maintain macroeconomic stability. The share of income tax has been very low over the years and to improve the government's tax revenue, more jobs have to be created in the formal sector. The central bank should cut its rate to give impetus to the economy and raise investors confidence.
Secondly, the electricity sector of South Africa has been problematic for many years. The state-owned enterprise, Eskom is debt-stricken. It has been failing to boost output and there have been serious power cuts. The government should, in gradual manner, disinvest the entity and allow private players in the sector.
Thirdly, the political instability within your government is causing a roadblock to some major reforms. Also, numerous scandals and corruption cases have also been dampening the economic growth. Your government should handle these issues with utmost urgency.

The National Development Programme (NDP) envisions to eliminate poverty and discrimination by 2030. It can be achieved only if our economy grows at around 5 to 6 percent and more jobs are created. The government also needs to work to provide quality education to all sections of the society. We still live in divided society and black people ares still deprived of many opportunities, The goals of the NDP can be achieved only if we create an equal playing ground for all South Africans.