Economics
Ramaphosa Rolls the Dice to Rouse Slumping South African Economy
- Government to reallocate 50 billion rand to spur growth
- Budget cuts may be hard to carry out, analyst Schultz says
Cyril Ramaphosa
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
South African President Cyril Ramaphosa pushed some of the right buttons with a reform package to tackle a massive task: revive an economy battered by recession during an emerging-market sell-off.
The “stimulus and recovery plan” Ramaphosa announced Friday will redirect 50 billion rand ($3.5 billion) to projects that can spur growth and cut into South Africa’s 27 percent unemployment rate. He proposed a multibillion-dollar infrastructure fund and new rules for the mining and energy industries. A review of power, rail and port tariffs and less onerous visa requirements are also on the table.