South African President Cyril Ramaphosa has declared an “economic emergency,” unveiling a sweeping 10-point plan aimed at resuscitating the country’s stagnating economy.
The announcement comes amid escalating tensions at power utility Eskom,deepening financial turmoil within the ruling African National Congress (ANC) party,and widespread investor skepticism. Speaking at a high-level ANC meeting,Ramaphosa announced the creation of an “Economic War Room” within the Presidency to track job creation,industrial growth,and government accountability. “We are treating this as an emergency because it is one,” he said. Key interventions include diversifying trade partners,reviving the chrome and manganese industries,upgrading freight and logistics infrastructure,and offering preferential electricity tariffs to key sectors. The plan also commits to re-skilling workers,expanding public employment programs,and boosting support for SMMEs through development finance.
However,critics,including the Centre for Development and Enterprise (CDE),have dismissed the plan as vague and unconvincing. “They seem very concerned about aligning all their policies; fiscal,monetary and industrial,while we’re much more concerned — in the midst of a fiscal crisis — in the sustainability of their policies,” said CDE director Ann Bernstein. At Eskom,labour tensions loom large. Its largest union is demanding a 15% wage hike — four times the inflation rate — threatening to destabilize recent gains in power grid reliability. Meanwhile,the ANC faces potential insolvency,with debts exceeding $4.5 million and access to campaign funds at risk. Despite the chaos,South Africa’s foreign reserves rose to $67.9 billion,and the rand remains stable — suggesting that,for now,investors are still watching with cautious optimism.
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