PRETORIA, November 26 (ANA) – Government remains committed to the priority of faster, more inclusive growth and employment to increase economic growth, government communications (GCIS) said on Saturday.
Government noted the Fitch Ratings announcement to change South Africa’s ratings from stable to negative, as well as Moody’s Investor Service decision to keep South Africa’s ratings unchanged, GCIS acting director general Donald Liphoko said.
“The South Africa economy has demonstrated its resilience in the midst of challenges. However, we have noted the concerns raise by Fitch Ratings and Moody’s Investor Service and government reassures all stakeholders that it remains committed to achieving the priority of faster, more inclusive growth and employment in order to increase the economic growth trajectory,” he said.
South Africa had sound monetary and fiscal institutions and the country’s fiscal consolidation plans would reduce the budget deficit to 2.4 percent by 2018/19. The country’s economic reforms and monetary policy was integral in supporting a return to the higher growth rates needed to achieve the National Development Plan’s goals and vision.
Through the implementation of the Nine-Point Plan, new growth opportunities and employment were being unlocked across the economy, through government and business. These included, among others, the creation of a R1 billion SME fund to help spur small business development, especially in the areas of tourism and agriculture. The oceans economy had the potential to contribute R177 billion to GDP and create just over one million jobs by 2033, and South Africa’s massive infrastructure investment programme was uplifting economic growth potential and competitiveness.
Government’s 2015/16 Industrial Policy Action Plan prioritised the development of industries supplying the infrastructure build programme, energy, transport, oil and gas, and water and sanitation, Liphoko said.
The ratings review affirmed the importance of government and all sectors of society working together as a collective to turn the economy around.
“Citizens can play their part by increasing their savings and avoiding debt, especially as we head towards the festive season. Working together, our efforts will make our economy stronger.”
The National Development Plan indicated that effective partnerships would enable the advancement of an inclusive economy which addressed unemployment, poverty, and inequality.
“Government’s announcement of a one-stop shop (Invest SA) for investment in South Africa is one such partnership that makes it easier to do business in the country.”
The decisions of the ratings agencies recognised South Africa’s commitment to sound macro-economic policies and its strong institutions. Government remained committed to working with all citizens and sectors of society towards the realisation of the 2030 Vision, Liphoko said.
– African News Agency (ANA)
