JOHANNESBURG: Economists welcomed President Jacob Zuma's State of the Nation Address (SONA), which focused on addressing impediments to economic development and investment, stating that the economy needed massive investments to drive growth.
"A massive investment in the economy is required to stimulate and unlock economic growth," stated Duma Gqubule, Economist and Director of the Centre for Economic Development and Transformation. He stated that the government should be encouraging investment in the economy to stimulate growth.
"You must spend money in order to grow. If you don't spend, you won't be able to expand. A stagnant economy makes it impossible for businesses to invest "He stated his opinion. He said that there was insufficient funds to purchase the things being manufactured.
He was responding to South African President Cyril Ramaphosa's SONA speech on Thursday evening, in which he stated that plans had been put in place to speed up the implementation of structural reforms to modernise and transform industries, unlock investment, reduce costs, and boost competitiveness and growth.
The "energy crisis is one of the greatest challenges to economic and social progress," according to the address. Ramaphosa promises to cut through the red tape that stifles business and economic progress.
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