Economy

SA unveils Medium-Term Development Plan to boost economic growth

Date: Feb 10, 2025

South Africa’s (SA) Maropene Ramokgopa has announced plans to enhance institutional effectiveness and drive economic structural reforms through the Medium-Term Development Plan (MTDP).

Ramokgopa, the Minister in the Presidency for Planning, Monitoring and Evaluation, highlighted that the plan aims to address key constraints in energy, transport, and logistics to unlock economic growth and generate jobs.  

The MTDP, a five-year roadmap, has been deliberated among political parties within the Government of National Unity (GNU) and aligns with President Cyril Ramaphosa’s recent State of the Nation Address (SONA).

The plan includes a 3% GDP growth target, surpassing National Treasury’s current projections. Ramaphosa has emphasised that economic growth over the next five years will be driven by reforms in energy and logistics.  

“The most urgent task is to grow the economy and create jobs. To achieve this, we need a competent and capable state that works for the people and treats all citizens with dignity and respect,” Ramokgopa stated.  

The MTDP is expected to be approved before the end of February and will serve as the foundation for government programmes starting in April. According to Ramokgopa, the plan is aligned with the GNU’s priorities and forms part of the broader National Development Plan (NDP), guiding government action towards the Vision 2030 goals.  

“This MTDP is a comprehensive framework focusing on economic growth, job creation, inclusivity, poverty eradication, and sustainable development. As it is the final medium-term plan before the 2030 deadline, accelerated delivery of strategic priorities is crucial,” she explained. The MTDP replaces the previous Medium-Term Strategic Framework.  

Additionally, Ramokgopa confirmed that the 7th administration would not be bound by new fiscal rules on expenditure, allowing the National Treasury flexibility in responding to economic shocks. The plan also aims to modernise government institutions by streamlining processes and clarifying departmental roles to enhance efficiency.  

She further noted that the MTDP would provide a framework for implementing the controversial National Health Insurance (NHI) Act, with an initial focus on strengthening the healthcare system and improving service quality.

--ChannelAfrica--

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