In a statement, Busa says it agrees that, although the South African economy will not escape the impact of the serious slowdown in world economic growth, the country is in a relatively good position to handle the effects of the global financial turmoil. It is also a tribute to the prudent fiscal policies pursued to date that Manuel has been able to take an anti-cyclical stance in order to stabilise the economic outlook and strengthen social safety nets in a period of stress.
The MTBPS again offers business a substantial measure of predictability in fiscal and related policies over the next couple of years. This helps to underpin business and investor confidence in a very difficult period, especially for small business. Another welcomed aspect is the postponement of the electricity levy until next July, as well as the financial support for Eskom confirmed in the MTBPS.
Busa believes it is important for South Africa to remain committed to the guidelines of the MTBPS in the interests of growth, job creation and poverty alleviation over the longer term, in order to unlock the true potential of the SA economy. The fact that growth in South Africa is now expected to be 3.7% and 3% in 2008 and 2009 respectively reinforces that goal and makes it even more necessary to implement the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) programme.
Busa sees the MTBPS as an essential instrument to project policy beyond the current volatile situation, so as to enable SA to build on its economic achievements to date and to become more globally competitive. Busa agrees that it remains crucial to ensure that the provision of financial resources is matched by the development of the necessary capacity in the public sector to ensure effective delivery of the services to which the government is committed, and where the private sector is willing to assist wherever possible.
