JOHANNESBURG, June 2 (Xinhua) -- South Africa requires a gross domestic product growth (GDP) of above five percent and structural changes to economy to recover in the post-virus period, said Business Unity South Africa (Busa) on Tuesday.
Busa CEO Cas Coovadia said the country is in a mess because before COVID-19 it had already been in fiscal crisis and recession, which was worsened by the sub-investment downgraded during the pandemic.
"We will need to build an economy that attains sustained growth of beyond 5 percent and is structured to be inclusive and equitable. This will require the critical stakeholders, particularly government, business, and labor to put aside ideology and dogma to put national interest above all else," said Coovadia.
Busa estimated the 2020 GDP would contract between 8.8 percent and 16.1 percent.
Coovadia said business and government have to create a conducive environment for local and international investors.
"This means we need to agree on the structural reforms critical to enable investment, growth, and inclusion. It means we must recognize the resource constraints we face, and available resources must be utilized in productive economic and social growth. It means we can only invest in projects that will deliver meaningful social or economic returns."
Busa believed that private sector is the best placed to stimulate economic growth, provided the state creates an enabling environment and business and labor reach a constructive compact taking all criteria including inclusivity, affordability, and competitiveness into account.
He called on government to take business as a credible partner in lifting the country out of the current crisis. Enditem