SA needed an effective turnaround plan to address its challenges and put its economy on an accelerated growth path‚ President Jacob Zuma said in his state of the nation address in Parliament this evening.

He did not provide details except to say that red tape had to be removed and legislative and regulatory blockages which inhibited investment had to be addressed.

Mr Zuma emphasisd the global circumstances which were affecting other emerging markets like Brazil and Russia which were expected to have contracting economies this year‚ and China where growth was expected to be lower than expected.

Global growth remained muted‚ financial markets had become volatile and currencies had weakened‚ the president said. Prices of gold‚ platinum‚ coal and other commodities had fallen while in SA the electricity constraints and the often unstable industrial relations added to the mix.

Mr Zuma referred to World Bank and International Monetary Fund projections of growth of less than 1% this year which he said would result in revenue collections being lower than previously expected. He raised the spectre of a credit ratings downgrade which would make it more expensive to borrow money to finance its social development programmes.

“We need to do things differently‚” Mr Zuma said.