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Reforms to Revitalize Local Economy Under the Spotlight

January 16, 2020

National Treasury

16 January 2020

An overarching legal framework with an independent judiciary and strong property rights is one of the outcomes of reforms national treasury remains focused on to revitalise the South African economy.

The finance minister, Tito Mboweni, emphasized this during an address at the Team South Africa WEF Davos breakfast briefing in Johannesburg.

He added that government needs to “move with urgency” to implement necessary reforms across key sectors including energy, water, transport and telecommunications in order to attract investment into the local economy.

Other desired outcomes of reforms designed to revitalise the economy include an efficient and capable state, prudent fiscal and monetary policy, a competitive and flexible exchange rate, a reimagined industrial strategy, prioritising job-creating sectors such as agriculture and tourism and a well-functioning financial sector.

The finance minister stressed that “achieving an inclusive, job creating and sustainable economy will not be possible without the reforms”.

The finance minister declared that updates on the status of the reforms will be provided in the 2020 Budget in February.

Policy reforms highlighted include the new Mining Charter in force since March 2019, land expropriation to be “pursued in line with the Constitution and in a manner that will not negatively impact on food security” and finalization of the licensing process for broadband spectrum.

As regards Eskom, treasury remains committed to “provide medium term support to Eskom to secure energy supply and to honour the state’s contractual obligations”.

Treasury also remains committed to separating Eskom into three functions namely generation, transmission and distribution in conjunction with necessary organisational reforms to achieve operational efficiency.