The government cannot afford to “miss the boat” in 2025 to introduce economic interventions that will help improve the livelihoods of its citizens, two ministers in the economy cluster of the cabinet say.
The ANC national executive committee will meet on Friday to finalise the party’s January 8 birthday statement which will be delivered by party president Cyril Ramaphosa this weekend in Khayelitsha, Cape Town.
Because the party has long used the event to set its and the government’s programme for the year, analysts, investors and organised business have been keen followers of the statement.
This year’s statement will have added importance because the party, which fared poorly in last year’s general election and failed to get a majority for the first time after 1994, is preparing for crucial local government elections in 2026. The poor performance has forced it into a government of national unity with rivals DA, IFP and a host of other smaller parties.
It also comes when fissures are widening within the party and with its alliance partners.
Trade, industry & competition minister Parks Tau and his finance counterpart, Enoch Godongwana, said the high cost of living, poor public transport, high data cost, jobs, logistical challenges at SA’s ports and infrastructure would get emphasis this year.
“We have not taken the economy seriously for some time. Our economy has been underperforming for more than decade,” Godongwana told Business Day.
Growth
Growth should be taken as the number one priority, not just by the government but by society as a whole, he said.
The big macroeconomic change was the investment in big infrastructure projects, which would push SA towards higher economic growth, Godongwana said.
“My role is to utilise fiscal policy to achieve certain desired outcomes. Infrastructure spending is the big change. We are shifting in focus to public infrastructure projects that support economic growth.”
He said the growth needed to be realised “soon”.
“We are doing the best and all that we can this year,” the minister said.
SA has a clear and critical need to invest in infrastructure, which has not been a priority in recent years amid a culture of corruption which has left the state battling to meet its wage bill and debt obligations.
Tau acknowledged the huge challenges the country faced, but said it should build on the green shoots in the economy.
“Post-elections business confidence has increased and that offers great opportunity. We cannot run the risk of missing the boat,” he said in an interview with Business Day.
“The revised industrial policy action plan with increased value chains is being finalised as we speak,” Tau said.
In the interview Tau was more detailed on the plans afoot.
He said the water crisis was brought about mainly by corruption in the water boards, an ageing and unmaintained infrastructure and a severe drought.
No shortage
“There is no shortage of water. But distribution systems are not operating properly,” he said.
“We need functional water infrastructure or there will be social instability and there can be no investment in value chains which will create economic growth,” he said.
He added that food prices were also high on the agenda going into the new year.
“We have been engaging with the sectors on areas of interventions especially on retail as a matter of urgency. We have heard the plight of South Africans.”
He said government of national unity (GNU) was agreed on the need to transform the telecom and automotive sector.
He alluded to discussions around SA bringing down the cost of data, increasing value chains and kick starting the mass manufacturing of electric vehicles in the medium term.
Some remain sceptical, however, about whether the GNU can make a difference in the lives of ordinary South Africans.
“The GNU framework has brought confidence from stakeholders to make the country work. The GNU though does not change the character of the public service that was there before 2024,” political analyst Lucky Mathebula said.
“We still have the same public service and until that public service understands its role in the new framework and what it needs to do, the state can then only start making a meaningful difference. We must never see the GNU as a silver bullet.”
While the economy is expected to take centre stage in the statement, the issue of service delivery will also feature prominently as the party braces for what could be a bruising local government election next year.
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