14-Point Plan To Solve Economic Slump

In June, President Jacob Zuma hosted a meeting of several ministers where he stressed the urgency of a coordinated response, explained Finance Minister Malusi Gigaba.

“An agreement was reached on implementation timelines for key structural reforms related to the nine-point plan,” he said.

The 14-point plan are:

The points are listed below, with dates of the deadlines for each point.

1. Fiscal policy

  • Finalise a sustainable wage agreement: February 2018; and
  • Finalise infrastructure budget facility: October 2017.

2. Financial sector and tax policy

  • Convene financial sector summit to quantify transformation targets, including for low-income housing and transformational agriculture: December 2017;
  • Bring down banking costs by implementing Twin Peaks: February 2018;
  • Work with the Department of Trade and Industry on targeted debt relief for most vulnerable (e.g. in cases of reckless lending): February 2018; and
  • Introduce micro-insurance framework and review Cooperatives Bank framework: February 2018.

3. Leverage public procurement 

  • Implement preferential procurement regulations, which took effect on April 1 2017: July 2017;
  • Finalise Public Procurement Bill: March 2018; and
  • Finalise complementary government fund aimed at financing SMMEs in start-up phase: February 2018.

4. Recapitalisation of state-owned entities and government guarantees 

  • Continue engagements on framework for the disposal of non-core assets: March 2018;
  • Conduct detailed audit of non-strategic assets of SOEs aimed at strengthening SOE balance sheets: March 2018;
  • Finalise recapitalisation of South African Airways and South African Post Office: August 2017;
  • Reduce the issuance of government guarantees, especially for operational reasons: October 2017; and
  • Determine the consequences of SOE non-adherence to the guarantee conditions: October 2017.

5. Broader SOE reforms 

  • Implement private sector participation framework: March 2018;
  • Implement the remuneration framework: March 2018;
  • Finalise the board appointment framework: March 2018;
  • Table draft Shareholder Bill: March 2018;
  • Implement a framework for the determination and costing of developmental mandates: March 2018; and
  • Approve ToR for implementation of the Remuneration Standards oversight committee: September 2017.

6. Private sector participation (PSP) Framework 

  • Engage other departments on PSP framework: July 2017;
  • Provide broader guidance on sectors or asset classes for PSP and decide whether sector specific PSP frameworks are needed: October 2017;
  • Present potential projects for PSP to line departments, technical task team and inter-ministerial committee: November 2017
  • Approve PSP projects as outlined in the governance framework proposed in the PSP framework: March 2018; and
  • Include PSP projects in shareholder compacts and corporate plan for subsequent implantation: March 2018.

7. Costing developmental mandates 

  • Consult other SOEs on costing of developmental mandate: August 2017;
  • Implement mechanisms to effect outcomes through corporate plans (e.g. instruction notes): August 2017;
  • Roll out the template for inclusion in the 2018 corporate plans: September 2017; and
  • Monitor implementation through quarterly reports, annual reports and corporate plans: March 2018.

8. Energy

  • Approach the National Energy Regulator of South Africa regarding Eskom hardship: July 2017;
  • Develop the case for Eskom soft support until tariff adjustment in 2018 and submit to Treasury and Eskom board: July 2017;
  • Finalise lowest cost IEP and IRP, taking into account extensive comments received during public consultation: February 2018;
  • Review the pace and scale of roll-out under the circumstances of Eskom hardship and overcapacity up to 2021: August 2017; and
  • Review the level of participation by black industrialists and develop a strategy to increase it: August 2017.

9. South African Airways

  • Finalise CEO appointment: July 2017;
  • Finalise and implement five-year turnaround plan: December 2019; and
  • Negotiate with lenders to extend debt to longer-term: October 2017.

10. Telecommunications

  • Conduct high level study on WOAN spectrum needs with a view to license the remainder to the industry: August 2017;
  • Issue policy directive mandating the Independent Communications Authority of South Africa to commence the licensing process: December 2017;
  • Complete the spectrum licensing process: December 2018;
  • Direct Competition Commission to investigate the data prices: July 2017; and
  • Commence roll-out of phase 1 of SA Connect Broadband programme: August 2017.

11. Postbank licensing 

  • Amendment of the enabling legislation for licensing of Postbank: December 2017.

12. Minerals and Petroleum Resources Development Act Amendment Bill

  • Finalise MPRDA Amendment Bill in a manner that reflects the inputs of civil society, labour and industry solicited through the public consultation process: December 2017.

13. Broad-based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry 

  • Conduct further engagements with civil society, labour and industry: charter gazetted.

14. The Regulation of Land Holdings Bill

  • Table Regulation of Land Holdings Bill in Parliament (after processing by a multi-disciplinary Ministerial Think Tank, the NJSC and NEDLAC): October 2017

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