Bloomberg reports that Paul Mashatile, secretary-general of the African National Congress (ANC), last week urged the government to accelerate spending on infrastructure to create jobs, while at the same time cautioning against raising taxes to fund additional welfare benefits.

“We have a lot of infrastructure that needs to be fixed, the rail lines, some provinces’ dams, road and bridges. That is where jobs are going to come from,” Mashatile opined. His comments came amid an ongoing debate in SA on how best to revive the coronavirus-battered economy, reduce a 34.4% unemployment rate and tackle rampant poverty and inequality. A recovery plan unveiled by President Cyril Ramaphosa in October last year envisioned the government allocating R100 billion for new infrastructure within four years, thereby envisaged to galvanize a further R1 trillion of private investment. Mashatile said the implementation of the plan had to be accelerated, and he indicated that newly appointed Finance Minister Enoch Godongwana would make that a top priority. Commenting on a Department of Social Development proposal that companies and workers be compelled to contribute as much as 12% of their earnings to a state fund that could provide unemployment, retirement and disability benefits, Mashatile said: “We do need social relief for the poorest of the poor, but we also need a funding mechanism that is sustainable that will not exhaust those who are already contributing. We will be cautious looking at that. It may not be something we do immediately.”

• Read the full original of the report in the above regard by S'thembile Cele at Moneyweb

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