Ramaphosa said in his State of the Nation speech on Thursday night:
“Our economy has not grown significantly over a decade. Even though jobs are created, the unemployment rate increases.
“The recovery of our economy has come to a halt as persistent energy shortages have disrupted businesses and people’s lives.
“Several state-owned companies are under pressure, and our public finances are under tremendous pressure”.
Ramaphosa says the state has no choice but to make a plan with its finances.
“Low levels of growth mean that we are not generating enough money to cover our expenses; our debt is on its way to unsustainable levels; and spending is wrongly focused on consumption and debt service rather than on infrastructure and productive activities. ”
When Finance Minister Tito Mboweni delivers his budget speech on February 26, he will give more details on plans the state has made.