SA doesn’t need another economic plan, says Dawie Roodt

SA doesn’t need another economic plan, says Dawie Roodt

Efficient Group chief economist Dawie Roodt doesn’t believe South Africa needs a new economic recovery plan.

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President Cyril Ramaphosa will address a joint sitting of Parliament on Thursday afternoon to outline South Africa’s economic reconstruction and recovery plan.


But Roodt says government will need to fix basic service delivery before laying out any grand economic plans.


He doesn’t believe anything new will come from Ramaphosa on Thursday afternoon.


"I don't think we are going to hear any new plan from Ramaphosa. We have got several plans in South Africa and this is just going to be one of them. Whatever the plan is going to be, it will be centred around infrastructure development in South Africa and job creation.


"I am not too optimistic about the plan. I don't think much will change because the emphasis will be wrong, the emphasis should simply be on making the government work properly, we need the government that is properly run and we don't have that," adds Roodt.


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Roodt says government will need money from the private sector for any of its spending plans to come to fruition.


"The South African economy is suffering because of the lockdown and the impact is disastrous. No economic plan will be able to get the South African economy out of this hole at the moment. It is going to take as many many years, but the right approach is going to make it easier.”


Roodt says the request by Finance Minister Tito Mboweni to postpone the mini budget is a red flag.


"The postponement means that he must be finding money somewhere for the recovery plan of the president. Maybe the president is going to announce some big expense items and it might also be an indication that the situation deteriorated, as far as the state finances are concerned, and he needs some time to figure whats going on."


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