The South African Government and business leaders have come together to tackle economic challenges and drive the nation towards growth and job creation. The partnership focuses on key sectors including energy, transport and logistics, and crime and corruption, with the goal of establishing a constitutional democracy, a thriving economy, and an inclusive society.
Progress in Energy
In just a year since the implementation of the National Energy Crisis Committee‘s (NECOM) Energy Action Plan (EAP), significant progress has been made. Key achievements include regulatory reforms, streamlined regulatory approvals, and the encouragement of private sector investment in energy. Eskom has received crucial support from businesses, including the optimization of the diesel supply chain at Ankerlig and the implementation of turnaround plans at four key power stations. Technical teams are working through NECOM to facilitate key energy reforms, with the goal of recovering approximately 5.4 GW over the next 12 months.
The Government has launched the One Stop Shop to streamline regulatory approvals and bring additional GWs onto the grid as soon as possible. There is also a block exemption from certain terms of the Competition Act for both energy suppliers and users, enabling greater collaboration on specific energy matters.
Improvements in Transport and Logistics
The National Logistics Crisis Committee (NLCC) and four Corridor Recovery Teams have been established to improve performance constraints in strategic commodity export supply chains. A Container Corridor Recovery team is also being created, with representation from major shipping lines, agriculture, and the automotive sector. The appointment of an international terminal operator to partner with Transnet in the Durban Pier 2 container terminal marks a milestone.
Fighting Crime and Corruption
The Joint Initiative against Crime and Corruption (JICC) has been established, featuring senior representatives from law enforcement agencies and business. Business Against Crime South Africa (BACSA) will be created as an independent structure to coordinate the interface with the government. A special purpose vehicle for establishing digital and data forensic capabilities for the NPA is also in progress.
CEO Pledge and Potential GDP Contribution
Numerous CEOs have pledged their support to the country to assist in increasing investment, growth, and employment. Research from PWC and Sanlam shows that progress in the three focal areas has the potential to contribute at least 3% to GDP. A higher rate of economic growth is essential to create meaningful jobs, 88% of which are within the private sector.
Critical Next Steps
The partnership has agreed on several critical next steps, such as expediting the passage of the Electricity Regulation Amendment Bill, completing the establishment of the National Transmission Company of South Africa (NTCSA), and finalizing the NPA Amendment Bill to establish the Investigating Directorate (ID) as a permanent entity within the National Prosecuting Authority.
Supporting Small and Medium-sized Businesses
The focus is on supporting small and medium-sized businesses that play a crucial role in job creation. Minister of Small Business Hon. Stella Ndabeni-Abrahams emphasizes the need to enhance funding and access to market support for these enterprises.
Building Confidence in the Economy
President Ramaphosa highlights the importance of a coherent and consistent public narrative to restore confidence in the economy while acknowledging the challenges ahead. By working together, South Africa can overcome these obstacles and unlock its extraordinary potential.
