MTBPS 2024: Finance minister Enoch Godongwana has emphasised government’s reform interventions, pointing to ‘cheap’ mobile data costs and the improved eVisa system.
The minister was speaking during a media briefing, ahead of delivering the 2024 Medium-Term Budget Policy Statement (MTBPS) of the seventh administration under the Government of National Unity.
To boost the fiscus, government undertook to implement economic structural reforms as part of phase one of Operation Vulindlela, with the allocation of high-demand spectrum by means of an auction as a key part of this.
In March 2022, the Independent Communications Authority of South Africa confirmed the successful conclusion of the auction of the International Mobile Telecommunications spectrum – also known as high-demand radio frequency spectrum.
The telecoms regulator indicated the auction process beat financial projections, raising R14.4 billion for the national fiscus.
The minister noted some of the reform achievements, including in the energy sector, which has seen 22 500MW of private sector investments in renewable energy projects. He also pointed to the “50% reduction in the cost of data for a 1.5GB bundle”.
“The first phase of Operation Vulindlela provides tangible evidence that structural reforms can reduce economic bottlenecks. It also demonstrates government can collaborate effectively with business for the collective good.
“The Department of Home Affairs has reformed the visa system to attract skills and boost tourism, including implementing an eVisa system for 34 countries, a trusted employer scheme and revised immigration regulations from May 2024. The rollout of 5G infrastructure is lowering data costs, expanding connectivity and improving access to network services.”
On implementing structural reforms, a National Treasury document indicates the first phase of Operation Vulindlela unlocked R390 billion worth of investment, noting the second phase will build on previous efforts.
According to National Treasury, SA’s economic growth prospects are closely tied to the success of structural reforms, in order to improve competitiveness and productivity, and boost investment.
“In its first phase, this initiative implemented 35 reform actions in five network industries, including reducing power cuts, improving the performance of the logistics system, lowering data costs, improving water supply and enabling the country to attract critical skills.
“The next phase of reforms will support higher medium-term growth, which is required to significantly expand employment.
“New initiatives aim to reverse local government decline, tackle spatial inequality and advance digital government to improve large-scale service delivery.”
Share