President Cyril Ramaphosa made encouraging announcements in his state of the nation address on Thursday, but there were also missed opportunities.
He did not chart a new course — which might be commendable — but what business was hoping for was a greater sense of urgency and a far stronger commitment to accelerating both energy market reforms and the infrastructure rollout. Business was hoping for a “big bang” announcement of ways to break out of the inertia that seems to be bogging down both of these elements that are so critical to SA’s economic recovery.
The president did make solid progress in other areas, however, particularly with his reaction to the Zondo state capture commission’s reports and the expert panel’s findings on the unrest of July 2021. His emphasis that it is the private sector that creates jobs and his moves to ease pressure on the small business sector, were also encouraging.
First, Ramaphosa announced a redesigned loan scheme for small businesses, which will involve development finance institutions. Second, he said he had appointed Sipho Nkosi, chair of the Small Business Institute and former CEO of Exxaro Resources, to the presidency “to cut the red tape that stops small businesses from growing and thriving”.
This is something Business Leadership SA (BLSA) has long been calling for, and both measures come at a critical time for SMEs that have been battered by the ravages of the Covid-19 lockdowns.
The president also provided an important update on the drive to build a capable state, saying the government would soon be finalising a framework for the professionalisation of the public service. Importantly, this will include tighter measures for the recruitment of public servants as well as continuous professional development. Improving the capacity of the public sector is vital to our long-term development.
However, it’s a bit concerning that Ramaphosa did not mention anything new on the disbursement of the $8.5bn pledged at COP26 towards SA’s just energy transition, merely repeating the announcement of the appointment of former Absa CEO Daniel Mminele as head of the presidential climate finance task team.
We would like to have learnt more about the composition of that task team. When the pledge was announced, the political declaration also provided for a task force to develop a programme of work, and BLSA called for this task force to be inclusive, with representatives from all spheres of society. We hope business, labour and other social partners are fully included in the decision-making process and, critically, there are strong measures imposed to combat the ever-present threat of corruption.
Where the president displayed strength was in his response to the expert panel’s report on the July unrest. Promising changes in positions within the security cluster and the recruitment of 12,000 new police personnel, he quoted some of the report’s more jarring conclusions. These included that there was an unequivocal failure of the country’s police and intelligence services, that the “internal differences” and factional fights in the governing ANC contributed to the carnage, and that these squabbles should be viewed as a national security threat. He said: “The report on the July unrest says cabinet must take full responsibility for what happened. We accept this and take the responsibility.”
BLSA also welcomes Ramaphosa’s strong commitment to pursue and accelerate prosecutions against those implicated in fraudulent Covid-19-related tenders, and in judge Raymond Zondo’s reports into state capture. However, that swings attention firmly back onto the National Prosecuting Authority (NPA) and questions of whether it has the resources to deal with the slew of anti-corruption cases that need to be successfully prosecuted.
BLSA is firmly committed to supporting prosecution processes and capacitating the NPA, and we are assessing ways in which we can do so without compromising any ethical considerations. We believe there are ways to achieve this and are hoping for fruitful engagement on this issue.
The president did not go into the other set of Zondo’s recommendations, which BLSA believes will go a long way in preventing future corruption, but he has said he will address them once the third and final Zondo report is submitted. These include that a national charter against corruption be adopted by the government, business sector and relevant stakeholders, and that an independent public procurement anti-corruption agency — including a council, inspectorate, litigation unit, tribunal and court — be established. Other measures are aimed at tightening up processes around state tenders and the appointment of executives to state-owned entities.
Accountability and strong anti-corruption mechanisms need to be integral features of the country in the years ahead, and efficient implementation of all of Zondo’s recommendations will send an important message that the days of impunity are behind us.
• Mavuso is CEO of Business Leadership SA
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.