SA needs new growth, jobs plans – survey

SOUTH Africa needs to find new ways to boost growth and job creation‚ according to an economic survey by the Organisation for Economic Cooperation and Development (OECD).

The OECD said wide-ranging structural reforms were required to create growth‚ boost job creation and improve inclusivity.

The survey calls for a range of structural policy reforms‚ such as opening key sectors‚ introducing a national minimum wage‚ developing apprenticeship and internship programmes‚ maintaining macroeconomic stability‚ improving the business environment and enhancing regional integration.

Speaking at the national Treasury yesterday‚ OECD secretary-general Angel Gurria said: “Last year low investment‚ plus the drought‚ reduced GDP growth to 0.3%.

“With persistently low business confidence‚ we forecast GDP growth to remain sluggish at 0.6% this year.

Finance Minister Malusi Gigaba welcomed the recommendations made by the OECD.

“It is without doubt that South Africa is faced with difficult economic conditions we are actively working to respond to.”

He said Treasury’s 14-point action plan‚ which was announced two weeks ago‚ addressed many of the OECD’s concerns.

Gigaba disclosed that South African Airways (SAA) had made a request to the Treasury in March for a R10-billion recapitalisation.

The request supports the assessment that the board of the struggling state-owned airline made of its future funding requirements.

The airline is dependent on a R19-billion state guarantee to remain operational.

SAA’s recapitalisation is expected to be addressed when Gigaba tables the medium-term budget policy statement in parliament in October.