World Economic Forum: Finance Minister Says Structural Reforms Key To Boost South Africa's Economy

South Africa is committed to bring structural reforms in the areas of electricity, infrastructure, water and logistics to boost the country's economy, Finance Minister Enoch Godongwana said in a panel discussion at the World Economic Forum (WEF) Annual Meeting on Tuesday.

Godongwana noted that these structural reforms are being driven by Operation Vulindlela, a joint initiative of the Presidency and National Treasury that aims to modernize electricity, water, transport and digital communication areas to help economic recovery in South Africa.

"There are a number of things we are doing to deal with structural reforms. One of the perennial problems we've had has been on the energy front. Massive structural reforms... are dealing with that question," Godongwana said during the panel meeting, held in Davos, Switzerland, SA News reported.

The structural reforms aim to stabilize the electricity supply; cut costs and increase the quality of digital communications; provide sustainable water supply; provide competitive and efficient freight transport; and create a visa regime to attract skills and grow tourism.

"A new challenge has been the logistics sector, where we are investing a lot in it. We have been trying to change the skills composition to the extent that we don't have and we have provided an environment where we can import skills with ease," he added.

During a media briefing last week, the finance minister emphasized the importance of structural reforms in South Africa to "revive medium-term growth prospects amid a constrained policy space," adding that the government remains "steadfast in carrying out structural reforms to support and accelerate economic recovery."

The finance minister invited international investors to invest in South Africa as he assured of a favorable business environment and implementation of structural reforms to overcome energy and logistics challenges aimed at supporting and expediting economic recovery.

The annual World Economic Forum will be held in Davos, Switzerland, from Jan. 15 to Jan. 19 and it will be focused on rebuilding trust.

The annual meeting has been interconnected to four themes: achieving security and cooperation in a fractured world, creating growth and jobs for a new era, artificial intelligence and a long-term strategy for climate, nature and energy.