Economic Stimulus Plans Bolster Weakened Rand
The announcement saw the Rand shoot up to a 4 week high vs the US Dollar.
The stimulus plan consists of 6 main points:
1) Making it easier to visit (Visas)
After the fiasco that has become applying to visit South Africa due to changes in visa requirements (especially for minors) a much needed relook at present policies will be had. The idea is to make it easier for foreign visitors to come to visit and even work in South Africa.
2) Revising the Mining Charter
It has been hard to balance the needs of workers and owners as well as local and international mining companies. The mining charter (Minerals & Petroleum Resources Development Act) looks to possibly even be totally dumped.
3) Lowering the Cost of Doing Business
Government is going to review administrative costs associated with electricity and use of SA’s ports.
4) Radio Spectrum
New licencing arrangements will be swiftly put in place which will dramatically reduce the cost of data and introduce more competition.
5) Spending R50 Billion
While spending R50 Billion this year on higher education another R50 Billion will be moved around to be pumped back into the economy. In particular the creation of township and rural economic areas and increased commercial farming.
6) R400 Billion in Infrastructure
The last time serious money was spent on infrastructure in SA was before the 2010 Soccer World Cup. Now government is looking to spend R400 Billion (over time) to help improve infrastructure, including new dams.
More details on the plan and funding will be forthcoming during the midyear budget speech.