President Ramaphosa announced an economic recovery plan that is hoped will stimulate the economy and restore investor confidence

The package contains a variety of measures: some designed to reverse policy failures of the past, others targeted at specific groups such as the youth, some that should already be happening but for various reasons have not, the announcement of a R400 billion infrastructure fund as well as greater coordination designed to improve actual spending. The extension of Employment Tax Incentive for a further 10 years was also announced along with a number of ad-hoc measures.

A brief sentence on reducing the cost of doing business was not backed with any detail.

The announcement of a new 10-person advisory panel on land reform is welcome, but it is unclear how this body may influence the parliamentary process and existing ANC promises.

A great deal of hope is being placed on the upcoming Jobs Summit and the Investment Conference in October.

There was a paucity of detail in the statement, leaving the minister of finance to explain where the funds for reprioritised spending will be taken from and also how much of the announced infrastructure spending is simply a continuation of already-announced and budgeted-for projects.

The lack of detail makes the package difficult to assess. What is encouraging is the implicit acknowledgement that certain policies have damaged the economy and need to be addressed. What is unclear is whether the detail in the solutions will actually meet these goals. What was missing was a comprehensive diagnosis of the economy’s structural woes and a broader plan to address these deeper problems.

Market reaction was initially favourable, with the rand rallying to levels last seen in late August, but these gains have since been reversed.