Implementation is key to economic recovery plan: BLSA

Date: 15 July 2020 | Author: Thuthuka Maseko Category: Media Statements

Business Leadership South Africa extends its unwavering support to Business for South Africa (B4SA) in its response to the Covid-19 pandemic and the economic shock it has caused.

On Tuesday (14 July), B4SA presented its Economic Recovery strategy document to Council members of BLSA to engage in an in-depth discussion on how best to implement the proposed strategies.

BLSA says as much as strategies may be good on paper, without successful implementation, a strategy is but a fantasy. Implementation therefore remains vital for the economy to witness recovery and inclusive growth.

“Sadly, as has been witnessed before, South Africa is great at plans but bad at implementation. The implementation and accountability now must be the main focus. While talk shops can often be a substitute for real work, talks will be required to get alignment between business, government and labour. Then implementation must be ruthless, with programmes adapted according to performance,” says BLSA CEO Busi
Mavuso.

“Implementation, which has been the missing ingredient in SA, is needed, together with an integrated national effort by all South Africans to re-establish a sense of greater good. In order to build trust and restore confidence, it’s time for us to work together, complement each other and implement the recovery plans,” clarifies Mavuso.

Mavuso applauds the business sector for having worked alongside government since the onset of Covid-19 and for remaining fully committed to these joint efforts in addressing the socioeconomic impact, the health pandemic and the humanitarian consequences.

“We are facing the biggest economic shock of our lifetimes. This pandemic has hit the most vulnerable in our society disproportionately and presents challenges that have brought the economy to the edge of a precipice,” says Mavuso.

“This plan recommends bold, practical steps that would provide an immediate boost to our economy, protect existing jobs and deliver new ones, while establishing other factors for securing long-term growth. It tackles unemployment and proposes measures to further support the business sector generally and particularly small, medium and micro enterprises.”

B4SA has identified 12 key initiatives that will accelerate the country’s economic recovery and could grow its gross domestic product by R1-trillion, generate 1.5-million jobs and increase tax revenues by R100-billion a year.

B4SA estimates its economic recovery plan will require R3.4-trillion in funds over the next three years. This would push public sector debt from R4-trillion to R6.4-trillion. The estimate does not take into account any potential rescue funds for distressed companies or any unforeseen bailouts of state-owned enterprises.

“As one of the founding members of B4SA, we acknowledge that the Covid-19 pandemic constitutes an unprecedented challenge with very severe socioeconomic consequences. We are committed to doing everything necessary to meet this challenge in a spirit of solidarity,” Mavuso says.