BUSINESS OF THE ECONOMY

SONA REAFFIRMED OBJECTIVE

KAMILLA Kaplan, an economist at Investec, said the State of the Nation Address reaffirmed the key economic policy objective of reviving fixed investment rates to place the economy on a sustainable, faster economic growth path. Economic growth has stagnated at an average of below 2 percent for nearly a decade, but needs to be closer to the 3 to 5 percent mark in order for unemployment rates to recede from close to 30 percent presently, for poverty alleviation and for fiscal sustainability. Ramaphosa emphasised the importance of collaboration between the government, business and organised labour to aid effective implementation of infrastructure projects. Restoring confidence through improved legislative and regulatory clarity and enhancing the ease of doing business is integral to a recovery in fixed investment by the private sector. The president noted the progress made over the last year in mining regulation. Policy areas to be addressed will include competition, the visa regime, allocation of broadband and the submission of the National Health Insurance Bill to Parliament. | Staff Reporter