Stop BEE and expropriation without compensation now to grow South Africa’s economy – DA
MYBROADBAND / 13 APRIL 2020 - 16.01 / STAFF REPORTER
The DA has unveiled a new Smart Lockdown proposal for South Africa, which provides four stages of lockdown relative to the national coronavirus infection rate.
DA leader John Steenhuisen said the lockdown in its current form is not feasible, considering its disastrous economic impact.
Instead, the DA proposed a “sustainable and flexible Smart Lockdown to supplement government’s coronavirus response effort”.
As part of its new Smart Lockdown plan, the DA has also proposed sweeping policy reforms to position the economy for growth.
“These reforms were essential before COVID-19, when the economy was already stifled and shrinking,” Steenhuisen said.
“Now, these reforms are fundamental to the survival of South Africa’s economy. We will not recover the economy after [COVID-19] without them.”
The DA has also proposed a R300-billion economic stimulus package, designed to offer direct cash to support struggling South Africans and businesses.
This should be funded by seeking R200 billion in new borrowings from low-cost international institutions like the International Monetary Fund, New Development Bank, and the World Bank.
DA’s proposed policy reform changes
The DA said to reform the state and the economy, and to offer reassurance to global funding markets, the government should:
Walk away from investment-killing policies such as expropriation without compensation, BEE, asset prescription, and the South African Reserve Bank’s nationalisation.
Bring down communication costs and bring in revenue by immediately auctioning spectrum.
Immediately liquidate or sell South African Airways.
End the Eskom monopoly on electricity generation.
Hold a firm line on the decision to cut at least R160 billion from the state wage bill.
Reform labour legislation and end the centralised power of bargaining councils.
Steenhuisen said the government must also table an emergency budget as soon as lockdown is over.
“This is to show real commitment to controlling government expenditure and not allowing ‘ordinary’ debt to explode,” he said.
“This is unavoidable now, since all of the revenue and growth assumptions in the February budget no longer apply.”
He said South Africa needs a budget that tightly controls expenditure, so as to give maximum credibility to a new borrowing programme ring-fenced for a COVID-19 response.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER