South Africa: Economic Reforms Key to Inclusive Growth
Finance Minister Enoch Godongwana has underscored the importance of accelerating economic reforms in order to achieve rapid and inclusive growth.
The Minister was speaking at the launch of the second phase of Operation Vulindlela (OV) at the Union Buildings on Wednesday afternoon.
“In order to drive more rapid and inclusive growth over the next five years, we must accelerate economic reform. A commitment to swift implementation of reforms is required across government to lower the cost of doing business, reduce regulatory bottlenecks and provide policy certainty.
“This, in turn, will promote investment, support export orientation, enable job creation and reinforce growth,” Godongwana said.
WATCH | President Cyril Ramaphosa launches the second phase of Operation Vulindlela
The second phase of OV will add to and increase pace on those reforms already underway in phase one.
“The immediate priority is… to sustain the momentum already developed and follow through on the implementation of existing reforms, in order to realise their full impact.
“This will require completing the reforms underway, as well as deepening those reforms which have already been initiated in the energy, logistics and water sectors, and visa regime. However, other structural constraints to growth remain, thus additional reforms will be prioritised in the next phase of OV to promote higher and more inclusive long-term growth,” he said.
Newly announced areas of priority include:
Strengthening local government and improving the delivery of basic services.
Harnessing digital public infrastructure as a driver of growth and inclusion.
Creating dynamic and integrated cities to enable economic activity.
Godongwana said government will also prioritise “improving the effectiveness and efficiency of spending by making progress on the implementation of recommendations of spending reviews”.
“With over 240 spending reviews undertaken by National Treasury and provincial treasuries since 2013, government has a solid foundation with which to not only introduce cost-cutting measures, but to systematically assess whether public expenditure is effectively aligned with the priorities of this government and delivers the best possible value for money.
“The road ahead is challenging but with agility, commitment to reform, we can achieve greater competitiveness and a more inclusive economy in line with this administration’s priorities,” Godongwana said.
By SAnews.gov.za.
