DA's new economic policy aims to relieve debt burden, support small businesses

• Published date: 26 April 2024
• Publication title: Mail & Guardian: Web Edition Articles (Johannesburg, South Africa)

The plan presented by DA leader John Steenhuisen on Friday also aims to scrap import duties on business tools, such as small bakkies, while the social relief of distress grant will be converted to a job-seeker's grant, the child support grant will be raised from R530 to R760, and the the ban on imported second-hand vehicles will be reconsidered

The DA touted its 68-page Plan to Unleash Enterprise, Grow the Economy and Create Jobs 2024, presented by Steenhuisen and policy head Matthew Cuthbert, as a "historic" and "groundbreaking" document which focuses largely on confronting the unemployment crisis by supporting the growth of small businesses and major labour reforms.

It also aims to create an environment conducive to business and job creation by stimulating economic growth, reviewing import duties and administered prices — which include the price of fuel and electricity — reducing debt to recover from the fiscal cliff, breaking up local "cartels" and boosting global competitiveness.

South Africa is in "serious economic turmoil", faces one of the world's worst unemployment crises, threats to the independence of the Reserve Bank and has uncompetitive industries, Cuthbert said.

"The DA's plan to rescue the economy begins with improving the ease of doing business and recognising the vital role of small businesses and entrepreneurship in driving economic growth and development in South Africa," he said.

"Some of the mechanisms include removing the import duties on critical business tools, establishing resources and facilities to support small businesses and job creation, and reforming the regulatory environment to create a conducive business environment.

"South Africa's fiscal situation is rapidly deteriorating with high levels of debt and escalating interest payments or debt payments, all reducing the budget available for frontline service delivery.

"The DA will ensure that the South African state has the fiscal space to deliver on its constitutional mandate by reducing the national debt."

Cuthbert said the party would ensure responsible monetary policy and the independence of the Reserve Bank.

Steenhuisen said the policy document had been created "in consultation with some of the best economic thinkers in the world" and was based on global examples of best practice. It was built "very simply on a fundamental truth that the wrong choices made by the wrong people have led to the wrong outcomes and that better choices made by the right people can … solve this...