Chief Economist at Econometrix, Azar Jammine, says the answer to a post-COVID-19 economic recovery lies in the political-will to arrest corruption and implementing appropriate policies.
He was commenting following the government’s recent presentation of a draft economic recovery proposal to the National Economic and Development Labour Council (NEDLAC). The proposal has received a significant share of criticism from some analysts and sections of business for its alleged vagueness and lack of tangible timelines.
The draft document sets out a three-phased priority plan for SOE and Energy sector reform, a massive healthcare response, and developing employment and job incentives among others.
Jammine explains, “Unfortunately there seems to be a completed dichotomy with the ruling party as to whether or not they support the kind of reforms that are being recommended by the National Treasury and the President himself. And it is this factionalism influence that is preventing decisions being taken to actually go ahead with some on these reforms and so nothing gets done.”
This was as a result of low production output in the mining, manufacturing and construction industries.
Investment Strategist at Old Mutual Wealth Izak Odendaal says the real blow to the economy happened in the second quarter of 2020:
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