As the country continues to battle the impact of COVID-19, the Johannesburg Stock Exchange (JSE) applauds President Ramaphosa’s fiscal stimulus to the economy.
The JSE believes that the well-timed announcement balances South Africa’s fiscal challenges with the need for stimulation and growth in the economy.
The government’s R500 billion stimulus package is a clear indication of government’s commitment to stimulating the economy whilst prioritising the fight against COVID-19.
For more read: SA President Ramaphosa Announces R500-bn Stimulus Package
The JSE believes that the additional measures mentioned in the stimulus package will be constructive in enhancing both consumer and business confidence through economic and structural mechanisms, including tax reforms, increased grant funding to SME’s and loan facilities raised through collaboration with major banks.
“The breadth of coverage of the fiscal stimulus across a multitude of sectors is practical for both building our economy and prioritising the human impact – it is comprehensive and drives medium-term growth,” says JSE Group CEO, Leila Fourie.
The JSE is keenly aware that this stimulus comes on the back of a challenged fiscal deficit, compounded by the country’s recent rating downgrade.
“This move will create a stronger base on which to foster growth and driving better ease of business. What will be crucial now is the administration and surety that funds will reach intended recipients and provide relief to our most vulnerable businesses and citizens of our country,” concludes Fourie.