SA must save during good times – Cyril Ramaphosa

Oscar Thomas

28 August 2014

Deputy President Cyril Ramaphosa today addressed the South African Reserve Bank Leadership Conference, where he stressed that the key challenges to economic growth in the country are domestic.

Ramaphosa said developing economies around the world remain vulnerable to volatile capital flows.

The economy contracted by 0.6 percent in the first quarter of the year, and barely grew in the second quarter, as mining and manufacturing production fell sharply and growth in other sectors remained modest.

Supply side disruptions have plagued the domestic economy over the last couple of years, weakening confidence and reducing the level of investment and household consumption.”

Meanwhile Deputy President Cyril Ramaphosa said government plans to radically transform the South African economy, and one way of doing that is through the implementation of the National Development Plan.

Ramaphosa said we seek a qualitatively different economy. Measures will be introduced to address poor lending practices and excessive charges in some parts of the financial sector, and make the financial sector more inclusive and accessible.

Ramaphosa said government would strengthen the regulation of financial institutions to ensure savings were protected. The Postbank would play an expanded role in the banking services.
“We need to work together to ensure the financial sector serves the real economy Ramaphosa added.