South Africa’s Government Pushes for Quick Reforms to Boost Growth, Says Deputy Finance Minister
The new South African government is focused on implementing rapid reforms to drive economic growth and reduce unemployment, according to Deputy Finance Minister Ashor Sarupen.
Speaking on Wednesday, Sarupen emphasized the urgency of these reforms, which aim to lift the country’s growth rate to at least 3.5% in the medium term.
South Africa’s economy has struggled over the past decade due to an energy crisis and challenges within the state-dominated logistics sector. In 2023, the economy grew by just 0.6%, and the official unemployment rate remains alarmingly high at 33.5%.
President Cyril Ramaphosa, whose African National Congress (ANC) was forced into a government of national unity after losing its parliamentary majority in May 2024, has called for reforms to stimulate growth and job creation.
Sarupen, representing the Democratic Alliance (DA) in the unity government, expressed optimism about the shared commitment to these reforms. “There’s an appetite for reform, and that’s been heartening to see,” he told Reuters in Pretoria.
Despite initial concerns about ideological differences between the ANC and DA, Sarupen believes that the unity government can effectively collaborate to revitalize the economy.
He also highlighted the government’s intention to maintain a disciplined fiscal approach while acknowledging the pressures on the Treasury.
A key issue under consideration is the future of a monthly grant of 350 rand ($19), introduced in 2020 to support those most affected by the COVID-19 pandemic.
Sarupen voiced support for extending this grant beyond 2026, potentially converting it into a basic income payment, provided it aligns with fiscal constraints.
Source: CNBC AFRICA
