There is nothing strikingly new in the latest Medium-Term Strategic Framework (MTSF) 2014 to 2019, outlining government’s priorities for the coming five years and providing an implementation road map for the National Development Plan (NDP). However, it is still worthwhile internalising some of the key economic targets outlined in the document.

The headline targets include:

• An increase in the gross domestic product (GDP) growth rate from 2.5% in 2012 to 5% in 2019.
• An increase in the rate of investment to 25% of GDP in 2019.
• A rising share in household income of the poorest 60% of households from 5.6% in 2012 to 10% in 2019.
• And, crucially, a decrease in the official unemployment rate from over 25% to 14% in 2020.

But besides these macro ambitions, there are some equally important microeconomic themes, not least one stating that the electricity generation reserve margin should be increased from 1% currently to 19% in 2019.

Also planned is a 5% increase in bulk water resources, a rise in broadband penetration from 33.7% to 80%, an increase in the tonnage moved on rail from 207-million tons to 330-million tons and improving the operational performance of seaports and inland terminals from 28 to 35 average crane moves per hour.

Admittedly, South Africans have grown justifiably wary of such jobs and growth targets. Few, if any, of the previous targets outlined in plans, ranging from the Reconstruction and Development Programme and the Growth, Employment and Redistribution programme to the Accelerated and Shared Growth Initiative for South Africa and the New Growth Path, have yielded the desired outcomes. Nevertheless, it is arguably still better to have a framework against which to measure progress, or lack there of. In addition, the MTSF offers citizens a helicopter view of the likely budgetary priorities for the period of the current administration.

For business, the main message is that government is genuinely serious about implementing the NDP, despite the misgivings of some of its alliance partners. This is important, as there is residual scepticism within the business community about whether all government is truly behind a plan, which critics see as overly business friendly.

The second message is that government is beginning to more fully recog- nise and embrace the role of the private sector in contributing to development. In fact, the MTSF is pretty explicit on this point, saying: “More rapid private-sector investment is critical for higher growth, as the private sector accounts for 80% of production and employment. The NDP indicates that South Africa needs to increase its level of investment to at least 25% of GDP. This requires an economic environment that encourages business investment and rewards competitiveness, especially in sectors that can catalyse longer-term growth and job creation.”

The document adds that government will, through the Presidential Business Working Group, “increase its engagement with business to unlock private-sector initiative, build investor confidence, promote trust and seek long-term commitments to implementation of the NDP”.

The final takeout for business is that government recognises that contradictions could well arise between the NDP and policy decisions eventually endorsed for implementation. But Minister in The Presidency Jeff Radebe says that, where such contradictions arise, they will be “resolved as we go along” in consultation with stakeholders.