Tito Mboweni, the Finance Minister  of the nation has unveiled a blueprint to reignite growth in the economy, create 1 million jobs and improve the levels of investments.

In the paper presented by the minister, the National Treasury said the reforms in the economy would result in the economy growing at between 2% and 3%. The South African economy has been sluggish over the last 10 years. It has been growing at less than 2% in the past decade and in the last five years growth has remained below 1%. It revealed that the last time the economy grew at about 5% was in 2008.

One of the proposals from the paper from the National Treasury, which will be sent for public comment, is to create labour-intensive industries to create jobs. South Africa has seen a jobs bloodbaths in the past few years with the mining sector being one of the most affected industries; Construction alone has lost over 140 000 jobs.

The abstract of the paper presented outlines a few interventions in the economy. the paper states that “The combination of low growth and rising unemployment means that South Africa’s economic trajectory is unsustainable. Government should implement a series of growth reforms that promote economic transformation, support labour-intensive growth, and create a globally competitive economy.” It also added that “We start by highlighting five fundamental building blocks of sustainable long-run growth and then identify a series of specific and detailed reforms to raise potential growth.”

It said the reforms needed in the economy were modernising network industries, lowering entry barriers in the economy and increasing competition, prioritising labour-intensive growth, implementing flexible industrial policy and promoting export competition.

The paper concludes that once these interventions and reforms are implemented the economy would grow between 2% and 3% and this would create 1 million jobs.

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