The government and business partnership to resolve South Africa’s challenges is beginning to bear fruit, although much more needs to be done.
This is according to a statement released by the Presidency and Business for South Africa.
The partnership between the two parties was established last year in a bid to work together to resolve the question of inclusive and economic growth.
The collaboration has targeted three areas for particular interest. These include energy, transport and logistics, and crime and corruption.
Energy
In a joint statement following a meeting between government and business, led by President Cyril Ramaphosa on Tuesday, the Presidency and Business for South Africa noted that the energy workstream, in particular, has achieved significant progress.
“The energy workstream was reported to have had the most impact. It achieved a dramatic reduction in load shedding, in collaboration with Eskom. Over 140 days without load shedding so far this year. And significant grid capacity recovery (with more than 6 gigawatts of new energy generation added). This through investment in additional technical support and capacitation from 57 companies. Over 9, 000 hours at five power stations invested. The energy availability factor is currently tracking above 60% vs 54% in 2023.
“However, we still face multiple challenges, including rapidly rising electricity costs. Also unsustainable municipal utilities, complex market reform and a constrained grid. With delayed expansion and stalling investment in new generation.
“Significant investment will be required for the energy sector reform over the next five to 10 years. And there was strong consensus that it is critical to pave the way now to address the challenges.
“Business, Eskom and the Presidency have made an agreement. They agreed on the priorities of the National Energy Crisis Committee. These should include a focus on transmission, market reform and municipal utilities. Also new energy generation,” the statement read.
Transport and logistics
In the statement, the two parties acknowledged that this was not “as quickly or extensively as anticipated”. Although the two workstreams have recorded successes.
“Business has provided significant technical support and resources to Transnet Freight Rail. This includes procurement and operations expertise. Also port maintenance support for Transnet Port Terminals. The Transnet Board and management team are making progress in implementing the Transnet recovery plan.
“There is broad acknowledgment that Transnet requires substantial interventions to improve performance. This in order to meet the needs of its customers. Also the market demand necessary for sustainable economic growth,” the statement read.
An agreement was reached to move quickly to implement reforms and meet Freight Logistics Roadmap deadlines.
“The rapid implementation of structural reforms and strict adherence to the Freight Logistics Roadmap deadlines are crucial. This is to facilitate the participation of and investment by the private sector. In order to help address our national logistics challenges.
“This is crucial to ensure that our commodities and manufactured products can be moved. To ensure that they are competitively sold into the local market and exported to meet demand. Resolving these issues will promote job retention and job creation,” the joint statement said.
Crime and corruption
Critical to South Africa’s growth and investment prospects is removal from the Financial Action Task Force (FATF) grey list.
When the FATF grey-listed South Africa at its February 2023 Plenary meetings, it adopted a jointly agreed Action Plan. The plan contained 22 Action Items linked to the eight strategic deficiencies. These were identified in the country’s Anti-Money Laundering and the Combating of the Financing of Terrorism (AML/CFT) regime.
The joint statement said the meeting agreed that an “immediate joint imperative” is to support SA’s removal from the list.
“Key to this is demonstrating the law enforcement agencies’ intent and ability. Its ability to successfully prosecute complex crime and corruption cases, and recover assets. Business is providing specialised skills at arm’s length to support this objective.
“The promulgation of the NPA Amendment Act is key to bolstering the ability of the IDAC [Investigating Directorate Against Corruption]. This to effectively deliver on its mandate,” the statement said.
On job creation, the meeting acknowledged that growing the economy is imperative to facilitate job opportunities.
“Unlocking a few key policy, regulatory and funding bottlenecks could accelerate existing short-term interventions. This across four areas, including new work opportunities in tourism and global business services. Also skilling that creates new jobs (particularly in digital skills). Providing additional public sector first loss funding to crowd in private sector capital to increase affordable debt available for SMMEs. And institutionalising, expanding and strengthening the SAYouth platform. This in order to facilitate access to opportunities for young people,” the joint statement said.
- SAnews.gov.za
