President Cyril Ramaphosa yesterday announced what his party colleagues have called a new: “Economic Action Plan” aimed at addressing South Africa’s deep economic and employment slump.

South Africa’s rate of economic growth has lagged that of its emerging market peers by around 70% over the past decade, whilst its unemployment rate is roughly six times higher than the global average. The chief reason for the slump is that levels of investment into South Africa’s economy sit at around half the rate of high-growth emerging markets.

Speaking at the conclusion of a special African National Congress (ANC) National Executive Committee (NEC) meeting convened to secure: “inclusive growth” and: “job creation,” Ramaphosa said the new plan followed discussions held by his party in August on how to improve growth and employment.

The president said the plan was informed by three strategic priorities: “to drive inclusive growth and job creation, to reduce poverty and tackle the high cost of living, and to build a capable and ethical developmental state.”

According to Ramaphosa, the ANC had drawn up: “a list of specific interventions” to support the government’s many existing economic recovery plans and programmes.

Ten interventions were listed.

The first will focus on using: “electricity tariffs and grid investment” to drive economic activity. Ramaphosa promised lower electricity costs for chrome smelters and the steel industry, along with the construction of: “14 000 km” of new transmission lines.

The second aims to: “accelerate the recovery of the freight and logistics sector” through investment and the upgrading of export corridors.

The third seeks to: “rebuild the chrome and manganese industries” by introducing export tariffs, applying duties to imports to protect the local industry, and expanding production of processed products.

The fourth intervention targets: “improved state capacity” to manage major infrastructure projects. Ramaphosa said this would cut delays caused by state ineptitude, ensuring projects are bankable, professionalising project management: “cadres” in the state, and establishing a new government unit to oversee implementation.

The fifth focuses on driving local economic development in townships, small towns, and rural areas. Ramaphosa said that to do this, the state would set up: “municipal technical units,” and that local infrastructure spending would be tied to a central industrial policy.

The sixth involves: “labour activation initiatives,” including increasing state funding for public works programmes and the training of artisans and apprentices who would work in the expanding industrial economy.

The seventh will increase state funding and market access for small businesses, by transforming development finance institutions into: “catalytic investors.”

The eighth seeks to: “enable the growth of provincial economies” by revitalising state-led industrial parks with localisation targets and aligning these to: “special economic zones and corridor development.”Agro-processing, light manufacturing, cannabis, and textiles were listed by Ramaphosa as priority sectors.

The ninth intervention aims to diversify South Africa’s trade partnerships and strengthen intra-African trade. Ramaphosa said that the state will finance an: “emergency industrial support package” for sectors affected by United States (US) tariffs, and South Africa will deepen trade ties with its partners, such as Brazil, China, Russia, and India, who, along with South Africa and others, form BRICS.

The tenth focuses on ensuring effective budget and macroeconomic coordination. A new budget strategy for the government of national unity will align industrial policy and explore the use of pension funds to invest in industrial projects. According to Ramaphosa: “Innovative financial models” will also be developed to fund new infrastructure.

Ramaphosa said the ten interventions reflected the ANC’s commitment to act swiftly in addressing what he called South Africa’s: “economic emergency.” In demonstrating the urgency, he said an: “economic war room” would be established in the Presidency to monitor progress and issue updates.