President Ramaphosa Chairs Crucial Meeting of Economic Advisory Council

President Cyril Ramaphosa led a meeting today of the Presidential Economic Advisory Council (PEAC). The focus was on dissecting current economic dynamics and devising strategies to bolster economic growth and job creation.

Members of PEAC praised advancements in economic reform, particularly in the energy, transport, and telecommunications sectors. Additionally, efforts to rebuild state institutions weakened by state capture garnered commendation.

The recently disclosed Census 2022 results brought positive news, revealing an improved quality of life for millions of South Africans. This progress is attributed to expanded access to education, water, electricity, housing, and other essential services.

However, despite strides in implementing fiscally, socially, and environmentally sound economic policies, PEAC underscored lingering challenges. In its assessment, fiscal risks, underperforming state-owned enterprises, persistent load shedding, historical infrastructure underinvestment, and escalating crime rates emerged as immediate obstacles to growth.

Acknowledging ongoing efforts to tackle these challenges, PEAC deliberated on proposals to fortify state capacity, professionalize the public service, and enhance governance in state-owned enterprises. Other proposals included a proactive green industrial strategy, support for small businesses and the informal sector, and expedited implementation of the Energy Action Plan to eradicate load shedding.

In a forward-looking stance, PEAC also discussed South Africa’s role in advocating for international financial architecture reform. Additionally, it backed calls for appropriate financing mechanisms to aid the climate transition in developing countries.

The insights and recommendations from PEAC continue to be instrumental in shaping government policymaking, signaling a collaborative effort to navigate and overcome economic hurdles on the path to prosperity.