Cyril Ramaphosa’s remarks at the State of the Nation Address continue to be discussed across the republic, with economists expressing mixed reactions. The president proclaimed numerous economic initiatives and expanded on the government’s priorities, stating that the nation would “pivot” toward manufacturing future-proof goods.
The Institute of Economic Justice (IEJ) has welcomed the president’s acknowledgement of the economic realities facing South Africans but expressed disappointment at the lack of thorough macroeconomic planning. According to IEJ Executive Director Gilad Isaacs, the president’s words amount to the state “stepping back” rather than taking proactive measures for the benefit of South Africa.
“The concrete measures the president articulates amount to the state stepping back from its responsibilities. Rather than being ‘developmental,’ the president proposes a regulatory, competitive, and derisking state that hopes that by merely supporting the right institutions and markets and derisking private finance, the private sector will invest where it is needed and the benefits will ‘trickle down’ to the rest of us,” said Dr Isaacs.
Meanwhile, independent economist Ulrich Joubert argues that the president’s speech, particularly its focus on critical infrastructure failures related to water, is welcome. However, he adds that the true test for the government lies in implementation, as promises have historically been made but ultimately left unfulfilled.
“Of course, the main factor remains the implementation of these promises and ideas. If we look at what has happened over the past 30 years, one is always cautious about the government’s ability to address these problems. He also mentioned local authorities and that they are going to try to rectify problems within them. We know that over the past 30 years local authorities have gone from bad to worse. So, at the back of your mind, you can’t help but wonder, with local elections at the end of the year, whether these are just promises,” Joubert stated.
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