Ramaphosa’s stimulus package nothing new, says SAFTU
Updated | By Gaopalelwe Phalaetsile
The South African Federation of Trade Unions (SAFTU) says President Cyril Ramaphosa’s economic stimulus plans are nothing new.
Ramaphosa announced a series of measures to kick-start the struggling economy and boost job creation at the Union Buildings on Friday.
The plan involves the reprioritisation of around R50 billion.
“We believe it in no way has the kind of measures which are needed to solve a huge economic catastrophe into which the country has been placed, in terms, it’s a business as usual approach. Most of it is old plans,” said SAFTU’s spokesperson Patrick Craven.
The plan focuses on several measures such as easing visa regulations to unlock tourism, an infrastructure fund and lowering data costs.
But Craven says the plan does not address job creation.
“It just appeals to people to invest in job-creating industries with no guarantee that they will take any notice because they are only motivated by increasing profits and will not listen to the moral appeal. We believe far too much is left to the private sector with the government really making minor changes at the top.”
He says the federation supports the reduction of data costs and the focus on improving sanitation in schools.
But he says if this plan does not increase the national budget it will not succeed.
Meanwhile, the Economic Freedom Fighters (EFF) agrees that the plan places the responsibility on the private sector to recover the economy.
“The South African private sector has proven in the last 20 years that even with growth-enhancing policies such as GEAR, AsgiSA, and the recent NDP, they prioritise profits at the expense of creating sustainable jobs and resolving the growing inequality,” the party says in a statement.
The EFF believes the plan to establish an infrastructure fund without a state-owned construction company is unsustainable.
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