Mashatile: $100bn needed to save SA economy
The coronavirus pandemic has hit South Africa's economy hard, leaving government scrambling for ways to boost the bottom line.
Despite the fiscal and monetary interventions, the pandemic continues to cause significant damage to the economy.
African National Congress (ANC) treasurer-general Paul Mashatile says extraordinary measures will be needed to save the country’s ailing economy.
“Government is already in discussion with international players such as the IMF, the World Bank, the New Development Bank and the African Development Bank to raise in excess 27-billion US dollars as part of our immediate health response to Covid-19.”
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Speaking at a webinar on Wednesday, senior economist at Absa Peter Worthington warned that the government's R500 billion business and social relief package is not enough to stimulate the economy. "It is very good that we have it, but I don't think it will be enough to lift us out of the sickbed and get the economy dancing in robust health," he said.
Speaking on Wednesday on the party's priorities for economic recovery during and after the pandemic, Mashatile estimated that billions of rands will have to be injected into the economy if it is to recover.
“We estimate that South Africa will require more than 100-billion US dollars for it to succeed.”
He added that government will need to look into more investments, as well as boosting local tourism and manufacturing.
"This is one of our major areas of contribution to our economy."