B4SA leaders met with President Cyril Ramaphosa this week.
Government and Business for South Africa (B4SA) – a body that’s helping the state to coordinate efforts to fix the nation’s collapsing infrastructure and governance issues – plan to accelerate reforms over the next year as some work is already yielding results.
READ: Business leaders to join Ramaphosa’s crisis committees
B4SA leaders met with President Cyril Ramaphosa this week and pledged to unlock “key policy, regulatory and funding bottlenecks” in areas such as energy and logistics, and to accelerate efforts to reduce crime and corruption in a bid to revive economic growth, the presidency and business group said in a joint statement.
South Africa’s biggest companies and the government have set up joint panels as part of a drive by businesses to work with the state to resolve issues holding back the economy – from power cuts and the poor performance of the rail network, to increasing crime and an inefficient work-visa application process
An energy crisis and the demise of rail, ports and other infrastructure — exacerbated by years of poor governance – have hamstrung Africa’s most industrialised economy. Gross domestic product expanded by an average of less than 1% over the past decade – less than needed to cut a 33.5% unemployment rat.
READ: Michael Beaumont | The plan to fix SA’s crumbling infrastructure
The energy workstream has had the most effect, with Eskom being able to provide power consistently for more than 140 days, where previously, the country grappled with almost-daily power cuts that lasted for hours, crimping productivity.
The next step will be to focus on problems regarding transmission of power, reforming the electricity market, growing generation and tackling issues at municipalities, the presidency and B4SA said.
Ports and freight utility Transnet requires substantial interventions to improve performance to meet the needs of its customers and the market demand necessary for sustainable economic growth
Clearing the bottlenecks “could accelerate existing short-term interventions across four areas, including new work opportunities in tourism and global business services, skilling that creates new jobs — particularly in digital skills,” they said.
This could also bring in more private-sector capital to increase affordable debt available for small businesses, and strengthen the so-called SA Youth platform to facilitate access to opportunities for young people, they said.
More than 130 chief executives have pledged support for B4SA. They have made R260 million available and mobilised more than 350 experts in energy, logistics, administration and governance to help address the nation’s issues.
“Continued momentum could mean we are able to achieve 3% to 5% GDP growth by 2030,” said Adrian Gore, the CEO of Discovery Ltd. and co-convenor of B4SA’s business delegation.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Recent Comments