NEWS

How Government Plans To Restore Economic Confidence

National Treasury has clear plans to boost trust in the economy.

25/10/2017 15:47 SAST | Updated 25/10/2017 16:03 SAST
Siphiwe Sibeko / Reuters
  1. Restore the sustainability of fiscal policy
  • The Budget Facility on Infrastructure run by the National Treasury and the Presidential Infrastructure Coordinating Commission received 59 project submissions with an aggregate funding requirement of R35-billion. Several projects have been recommended for detailed appraisal.
  • Negotiations on the next public-service wage agreement are under way.
  1. Promote transformation and competitive outcomes by implementing sector reforms.
  • The Preferential Procurement Policy Framework Act Regulations took effect on 1 April 2017.
  • The Financial Sector Regulation Act was signed into law on 21 August 2017.
  1. Manage fiscal and economic risks associated with state-owned entities
  • Government granted South African Airways R5.2 billion to address debt obligations. This allowed SAA to avoid default, roll over some debt and continue negotiations with lenders. A permanent chief executive officer has been appointed, and the appointment of a chief restructuring officer is under way.
  • A private-sector participation framework and a template to determine and cost developmental mandates have been approved by Cabinet.
  • An energy task team resolved not to provide balance-sheet support to Eskom. The Minister of Energy announced that Eskom will sign power-purchase agreements with independent power producers at a tariff not exceeding 77c/kWh.
  1. Create policy certainty by finalising key legislative and policy processes
  • The Council for Scientific and Industrial Research completed a study on spectrum availability and open access.
  • The Competition Commission launched a market inquiry to investigate data prices.
  • Draft legislation is being finalised to facilitate the licensing of Postbank.
  • Implementation of the revised Mining Charter has been postponed to December 2017.
  • Government is consulting stakeholders on the Regulation of Agricultural Land Holdings Bill.