CAPE TOWN, Sept. 21 (Xinhua) -- South African President Cyril Ramaphosa on Friday unveiled a comprehensive economic stimulus plan with a focus on restoring investor confidence.
The measures outlined in the plan give priority to those areas of economic activity that will have the greatest impact on youth, women and small businesses, Ramaphosa said.
"It is generally agreed that in order for our economy to grow at a rate that will lead to job creation on a meaningful scale, we need to significantly increase levels of investment," the president said.
The plan, he said, is designed to help rapidly accelerate the implementation of key economic reforms that will unlock greater investment in important growth sectors, which include immediate changes approved by the cabinet on Thursday in South Africa's visa regime.
Within the next few months, amendments will be made to regulations on the travel of minors, the list of countries requiring visas to enter South Africa will be reviewed, an e-visas pilot will be implemented, and the visa requirements for highly skilled foreigners will be revised, according to Ramaphosa.
"These measures have the potential to boost tourism and make business travel a lot more conducive.
"Tourism continues to be a great job creator and through these measures we are confident that many more tourists will visit South Africa," he said.
The plan also makes it imperative that South Africa restores investment and exploration levels in the mining sector.
This will revitalize the mining industry and provide certainty to investors while charting a sustainable path towards a transformed and inclusive industry, said Ramaphosa.
Mining and mineral beneficiation activities have significant potential to drive long term growth, exports and job growth, Ramaphosa said.
Parliament will be requested in terms of its rules not to proceed with the Mineral and Petroleum Resources Development Act Amendment Bill, which has contributed to a lot of uncertainty in the sector, according to Ramaphosa.
The bill, which has long been delayed, has met with strong opposition from the mining industry because it requires mining companies intending to export minerals to apply for written consent from the Minister of Mineral Resources, who might apply certain conditions.
Separate legislation for the regulation of the oil and gas industry will be drafted through the government's legislative process, Ramaphosa said.
To reduce the cost of doing business, to boost exports and to make South African industry more competitive, the government has begun a review of various administered prices, starting with electricity, port and rail tariffs, Ramaphosa said.
Other measures to be implemented include expanding procurement from small business and cooperatives, as well as using trade measures - within WTO rules - to protect poultry and other sensitive sectors and a vigorous crackdown on illegal imports, according to Ramaphosa.
The plan also re-prioritizes government spending towards activities that have the greatest impact on economic growth, domestic demand and job creation, with a particular emphasis on township and rural economies, women and youth.
"Our government has limited fiscal space to increase spending or borrowing, it is imperative that we make sure that the resources that we do have are used to the greatest effect," the president said.
Re-prioritized funding will be directed towards investments in agriculture and economic activity in townships and rural areas, he said.
The government will make interventions to ensure that black commercial farmers increase their entry into food value chains through access to infrastructure like abattoirs and feedlots, Ramaphosa said.
As part of the plan, the government will set up a South Africa Infrastructure Fund, which will fundamentally transform its approach to the rollout, building and implementation of infrastructure projects.
The Fund will reduce the current fragmentation of infrastructure spend and ensure more efficient and effective use of resources, according to Ramaphosa.
The private sector will be invited to enter into meaningful partnerships with government in this fund, he said.
The contribution from the fiscus towards the Infrastructure Fund over the medium-term expenditure framework period would be in excess of 400 billion rand (about 27 billion U.S. dollars).
"Together, we are taking bold and concrete measures to ensure a clear and sustained improvement in the lives of all South Africans," Ramaphosa said.
