At a meeting with the heads of various financial institutions, the President Cyril Ramaphosa on Tuesday called for extraordinary action to jump-start the economy.
Topping the agenda was the burning issue of unemployment. The meeting was held at Tuynhuys.
Ramaphosa said extraordinary action was needed to deal with the country’s economic problems.
He believes that infrastructure plays a formative role in a country’s economic welfare. But, for this to be realised more public investment was needed. The problem is that it’s on the decline. Currently, it makes up just over 10% of total spending.
Added to this was what Ramaphosa called the “hemorrhaging” of critical skills which he said was aggravating the bleak state of public infrastructure.
The president emphasised that development banks and finance institutions, as well as the private sector all, had a critical role in financing investment.
Ramaphosa also bemoaned how the fiscal space was further constrained by the vast contributions given to rescue state-owned enterprises such as Eskom and South African Airways.