- President Cyril Ramaphosa has admitted that the government is essentially bankrupt on Thursday
- An Economic Recovery Plan is urgently being worked on, set to be released in coming days
- Ramaphosa stressed that all South Africans should be invested in ensuring this plan succeeds
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President Cyril Ramaphosa, discussing the efforts to kickstart the economy after the devastation of the Covid-19 pandemic, has admitted that the South African government is essentially bankrupt.
An Economic Recovery Plan is urgently being formulated with Ramaphosa highlighting its successful implementation as crucial.
The plan is so crucial that Ramaphosa has dismissed calls from those involved in creating it to extend deadlines.
READ ALSO: GDP shrinks by 51% in 'pandemic' quarter: "Severe punch in the gut"
Speaking during a Q & A session with the SA Editor's Forum, Ramaphosa said that the timeline for this plan is soon with expectations for finalisation within the next three weeks.
Discussing the economic health of the nation Ramaphosa said there is precious little fiscal resources to spread around. Fundraising and contributions from the private sector were all mentioned as possible solutions:
“Government has to a large extent run out of money and we are going to have to cobble the money together. Fortunately, some aspects of this recovery plan will be funded through a variety of mechanisms, with the private sector playing a key role. Government will play a key role."
Acknowledging frustration with the pace of reform and policy implementation, Ramaphosa said that:
“I know that the level of confidence of many people is pretty low because we have delayed in an inordinate manner. But we are facing a new area – implementation after implantation.”
Irrespective of the plan at the end of the day the President stressed that all South Africans must be united in their determination to see it succeed:
“In the end, it is our plan, and all of us will have a role to play. We are seeking to galvanise the entire nation together. We also need to be able to make everyone realise that it is important that if we want to achieve these ideals that we need to work together.”
Earlier, Briefly.co.za reported that South Africa's GDP had contracted with a devastating 51% during what Stats SA dubbed the 'pandemic quarter'.
Very few sectors managed to escape the deathblow that came with the national lockdown, with agriculture one of the only industries that managed to weather the storm.
Discussions are currently being held to determine if the nation is ready to shift to Level 1, with the hopes that this will serve to stimulate the economy.
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