Ramaphosa says load reduction will end as economy recovers

President Cyril Ramaphosa told Parliament on Tuesday that South Africa is working to bring load reduction to an end as the economy recovers. He linked the progress to improving macroeconomic conditions and flagged a major infrastructure investment plan as part of the government’s programme.

Macroeconomic improvements cited

Delivering the Presidency’s budget vote, Ramaphosa said:

“The macroeconomic environment has improved, tax collection revenues remain strong, public finances are in better shape and national debt has stabilised.”

He warned, however, that global developments were still a risk.

“These developments are likely in the immediate term to slow economic growth and hamper our efforts to create jobs.”

Ratings upgrades and investment pledges

Ramaphosa noted recent credit-rating moves, referencing Moody’s and S&P actions that have shifted South Africa’s outlook. He also told MPs that the sixth SA Investment Conference secured investment pledges in excess of R890 billion, with a substantial portion coming from domestic investors.

R1 trillion infrastructure push

The president announced a plan to invest R1 trillion in what he described as the largest infrastructure build in South Africa’s history. The programme, covering the next three years, will focus on building and refurbishing roads, dams, schools, hospitals and clinics, and on energy, logistics and transport infrastructure.

Logistics and agriculture improvements

Ramaphosa said focused attention on Transnet, supported by the national logistics crisis committee, has improved performance in railways and ports and eased long-standing bottlenecks across mining, agriculture and manufacturing.

He pointed to agriculture’s recent performance, saying that between January and March the sector recorded an 11% increase in export earnings compared with the previous year and that South Africa is now the world’s largest exporter of citrus by volume.

Next steps

The president said the Presidency will coordinate efforts across departments, provinces, municipalities and social partners to direct resources towards developmental objectives. He also said the Land Reform and Rural Development Minister, Mzwanele Nyhontso, will outline a programme to convert agricultural leases to title deeds.