South Africa’s President Ramaphosa has just announced a unique Stimulus Program for the economy. It targets the usuall sector of Infrastructural Development.
What is unique about the Ramaphosa Stimulus is the way he is funding it by saving money from very needful areas of the economy – running into billions of Dollars.
Why is he doing this? In Europe and United States, Stimulus Programs are usually funded by the Central Banks.
Secondly, despite the bold talk about a slide into recession, the South Africa’s economic situation needs to be put into perspective.
The country generates 10 times the electricity Nigeria generates. It has functional rail and road systems and there are no gridlocks at it’s ports.
The obvious aspect of the economy demanding urgent attention is the unemployment situation encompassing a quarter of the population and affecting mostly young people.
So the truly relevant question is what Ramsphosa will do about that.
