Govt-Business Partnership Shows Progress in Addressing South Africa’s Challenges

A recent joint statement from the Presidency and Business for South Africa highlighted the progress made and outlined ongoing challenges.

The partnership between the South African government and business sector, established last year to tackle issues related to inclusive economic growth, is beginning to show positive results, though further efforts are needed. A recent joint statement from the Presidency and Business for South Africa highlighted the progress made and outlined ongoing challenges.

Energy Sector Progress

Significant advancements have been reported in the energy sector. The energy workstream has led to a substantial reduction in load shedding, with over 140 days of uninterrupted power supply so far this year. Collaborative efforts with Eskom have resulted in a notable recovery of grid capacity, with more than 6 gigawatts of new energy generation added. This progress is attributed to over 9,000 hours of technical support from 57 companies across five power stations, improving the energy availability factor to above 60% compared to 54% in 2023.

Despite these achievements, challenges remain, including rising electricity costs, issues with municipal utilities, and delays in grid expansion. The statement emphasized the need for significant investment and reform over the next five to ten years, focusing on transmission, market reform, municipal utilities, and new energy generation.

Transport and Logistics

In the transport and logistics sector, notable improvements have been made, but not as swiftly or extensively as hoped. Business contributions have included technical support for Transnet Freight Rail and maintenance support for Transnet Port Terminals. While progress has been made in implementing the Transnet recovery plan, substantial interventions are still required to enhance performance and meet market demands.

The statement stressed the importance of rapidly implementing structural reforms and adhering to the Freight Logistics Roadmap deadlines to facilitate private sector investment and address national logistics challenges. This is essential for competitive local and export markets and for promoting job retention and creation.

Crime and Corruption

The fight against crime and corruption remains a critical focus, particularly in light of South Africa's recent grey listing by the Financial Action Task Force (FATF). The joint statement underscored the urgent need to support South Africa’s removal from the grey list by demonstrating effective law enforcement and prosecution of complex crime and corruption cases. Business is contributing specialized skills to support these efforts, with the promulgation of the NPA Amendment Act seen as crucial for strengthening the Investigating Directorate Against Corruption (IDAC).

Job Creation and Economic Growth

The meeting also addressed job creation and economic growth as key priorities. It was acknowledged that unlocking policy, regulatory, and funding bottlenecks could accelerate short-term interventions in areas such as tourism, global business services, digital skills training, and support for small and medium enterprises (SMMEs). Strengthening the SAYouth platform to enhance access to opportunities for young people was also highlighted as a critical step.

Overall, while progress has been made, continued collaboration and investment are essential to overcoming the remaining challenges and driving sustainable growth in South Africa.