According to the Reuters report, South Africa is unlikely to reach it's planned 7% economic growth, and the National Treasury has cut its growth forecast for 2011 to 3.1%. Plans may include getting pension funds to buy more bonds, said Enoch Godongwana, head of the ANC economic transformation committee.
The financing proposals, including one looking at incentives and penalties aimed at strengthening the key mining industry, are contained in a draft paper to be debated next week by the ANC's national executive committee. "What we are looking at is a carrot and stick approach to encourage investment in mineral beneficiation" or processing, Enoch Godongwana said. He did not give details of the penalties and incentives being contemplated, however, saying this needed to be debated first, Reuters reports.
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