BL Premium reports that in a bid to reverse high unemployment and increasing inequality, President Cyril Ramaphosa may announce in his state of the nation address this week that jobs in some sectors of the economy will soon be reserved for SA citizens.
This is one of the proposals on which the cabinet is expected to decide this week, ahead of the address, which Ramaphosa will present to parliament on Thursday evening. The ANC and its Cosatu and SA Communist Party partners in the tripartite alliance discussed excluding foreign nationals from some local markets at the ANC’s recent lekgotla. While it remains unclear which sectors of the economy might be reserved, investors could respond negatively to such a signal, which could be seen as xenophobia at a time when the address is being looked to for signs that the government is ready to focus on kick-starting economic growth and speeding up implementation on its long-promised structural reform programme. Investors will also be closely watching the state of the nation address for clarity on whether the government intends to implement a basic income grant (BIG). But while the cabinet is expected to discuss this, a source close to the president indicated that no decision had yet been taken because financing a BIG was likely to require an increase in VAT. “Given the rising cost of living, it is still unclear if the BIG is possible. Firm direction is being sought from Treasury,” the source indicated.
- Read the full original of the report in the above regard by Hajra Omarjee at BusinessLive (subscriber access only)
- Read too, ANC cornered to tackle foreigners employment quota, at The Citizen (subscriber access only)
Get other news reports at the SA Labour News home page