Given the current global economic market and a lack of foreign direct investment, South Africa would need a more relaxed monetary policy going forward, the Independent Democrats (ID) said on Wednesday.

The policy should include a substantial cut in interest rates, said ID representative Lance Greyling.

Central to all of this, was a fiscal stimulus package which the ID believed must achieve three objectives.
• The package must address the country’s infrastructural and human resource constraints, thereby bringing down the cost of doing business, and building up the necessary skills base.
• It should also boost employment, especially among young South Africans, where the unemployment rate was close to 70%.
• And, it must expand the social security net to ensure that some relief is granted to the one-half of South Africa’s population that is living in poverty.

Greyling added that the ID outlined more than 100 suggestions in its election manifesto, which would assist in economic development.

“The ID would introduce a minimum income grant to ensure that everyone who lives in poverty, receives some form of assistance. Not only does this alleviate poverty, but it will also channel money into resource deprived areas, and stimulate the economy.”

The ID would also introduce a wage subsidy for South Africans between the ages of 18 and 25, which will act as an incentive for businesses to hire young South Africans.

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