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South Africa’s Ramaphosa Seeks Lower Wages, Investment Commitments to Revive Economy

  • Requests anger labor and business groups, people familiar say
  • Proposals are part of social compact pledged by the president
Cyril Ramaphosa

Cyril Ramaphosa

Photographer: Dwayne Senior/Bloomberg

South Africa’s government sought a series of commitments by labor unions and business, ranging from lower entry-level wages to an agreement to boost investment, as part of a plan to revive the nation’s struggling economy. 

The proposals angered both parties because they contain stipulations they aren’t willing to meet and want the government to do more to confront immediate problems such as power outages and state corruption, according to people familiar with the matter who asked not to be identified because the talks are private.