Business aims to lift growth by 3% through joint government initiative

Business organisations say that their joint initiative with government on the three priority areas of energy, logistics, and crime and corruption has the potential to lift SA’s economic growth by three percentage points.

The alternative – that the country’s slide continues, and the downward trajectory is not reversed – is too dire to contemplate, so they have stepped in to help government with resources and expertise in the three areas.

A year ago, business joined forces with top government officials in the National Energy Crisis Committee to urgently address the electricity supply shortage. Earlier this year, business organisations under Business for SA (B4SA) raised R100 million to fund the energy crisis response. In June, the joint initiative was expanded to put work streams on logistics and crime and corruption in place.

One hundred and twenty CEOs have a signed a pledge to help government.

This week, the B4SA, Business Unity SA (BUSA) and Business Leadership SA (BLSA) met with President Cyril Ramaphosa and top Cabinet ministers and officials to take stock of progress and priorities. Business leaders briefed the media on the meeting on Wednesday, emphasising that progress was already being made.

Said B4SA head Martin Kingston:

The SA Reserve Bank expects growth of 0.4% this year and 1.1% in 2024. This is not enough to keep pace with population growth, meaning that unemployment will continue to rise, and South Africans will get poorer per capita.

BUSA CEO Cas Coovadia said there had been a notable change in enthusiasm in this week’s meeting, with “substantial input” from Cabinet ministers demonstrating progress.

Standard Bank CEO Lungisa Fuzile said there was no doubt that the three focus areas were the most important.

“They are systemic in nature. What they take out of the steam of the economy is massive. You can’t drive an economy without energy, transport and logistics and where crime is pervasive,” he said.

In the energy work stream, Energy Council CEO James Mackay said that the business had secured an undertaking from government that amendments to the Electricity Regulation Act (ERA) would be processed through Parliament this year.

The amended ERA is critical to restructuring the energy supply industry and creating opportunities for competitive energy generation. Mackay said he was also very confident that the National Transmission Company, which will be spun out of Eskom in the unbundling, will be fully licensed soon. Last week, the National Energy Regulator of SA (Nersa) approved the first licence required with two others in the pipeline.

In the area of crime and corruption, government has committed that the National Prosecuting Authority (NPA) Amendment Bill – which will give permanence to the Investigating Directorate – will be tabled in Parliament by the end of August.

Sibanye Stillwater CEO Neal Froneman, who heads up the crime and corruption work stream, said that the business’ role would be to “capacitate and create structure” in the criminal justice system. Business Against Crime was working closely with the NPA on skills and capacity in data and forensics.

‘Doing it for SA’

A Joint Initiative on Crime and Corruption had been operationalised with the security cluster to address crime prevention. The initial focus will be on syndicated crime and disrupting illicit supply chains and flows.

“It is a very significant step forward. For the first time, the government has supported the private sector working very closely at senior levels within the security cluster,” he said.

In the transport and logistics work stream, joint teams were finalising the freight logistics road map, which will be available for consultation by the end of August and submitted to Cabinet by the end of September.

Asked whether the initiative would compromise the political independence of business, particularly coming before an election, business leaders said they could not fold their arms while the country was in crisis.

Said Fuzile: “I don’t think as adults we can ever put such a premium on our independence and say that if we work with government on matters of common interest and matters that – if we had to sort out – [would make] SA a better place, [to then] say we can’t work with government.

“I am working unashamedly with government because I want an SA that works that delivers prosperity for everyone. I’m not doing it for the governing party; I am doing it for SA. SA does not belong to the governing party.

“And, yes, we are going into an election, and if it had to happen that a different government would emerge, I would unashamedly work with that government.” – news24.com