Big win for business and government’s plan to save South Africa
The South African government’s partnership with the private sector to tackle some of South Africa’s biggest problems is bearing fruit.
According to Business Leadership South Africa CEO Busisiwe Mavuso, the commitment of both parties was seen during a meeting last week, as the partnership has already helped to ease energy constraints.
For instance, regarding the energy crisis, the National Energy Crisis Committee has made progress on the Energy Action Plan (EAP), with the partnership between the government and the private sector helping to bring back Kusile Unit 3 two months ahead of schedule.
Despite some environmental concerns, Unit 3 at Kusile will produce 720 MW to the grid or just under one stage of load shedding. The unit – along with Units 1 and 2 – were taken out of service last year following the collapse of a flue gas desulphurisation duct.
Almost 130 private sector volunteers are working in partnership with Eskom and the government to support the effort at Kusile, with private sector technical support teams also working at five other power stations.
“Government has expedited several pieces of legislation required to implement the EAP, particularly the establishment of an independent National Transmission Company of South Africa, which has now been licensed to become the grid operator able to procure energy from many sources,” Mavuso added.
The National Logistics Crisis Committee (NLCC) has six of its eight streams now in operation, with the remaining two still with President Cyril Ramaphosa’s Operation Vulindlela.
Mavuso said that solving the logistics crisis is key as 35,000 jobs in the mining sector are at risk partly due to the failing logistic system.
Regarding bulk rail systems and ports, recovery teams with industry representatives and independent experts are working with Transnet to increase freight volumes at five strategic corridors.
One team has also been created to address congestion at the Lebombo border crossing with Mozambique, while another is working to restore passenger rail services.
Mavuso added that progress has been made in tackling crime and corruption, with the partnership with the NPA being further built upon and law enforcement working to protect rail infrastructure.
“Government has agreed to a cadence of follow-up meetings every six weeks’, and I expect, and hope, we will see even more tangible evidence of delivery,” Mavuso said.
“Government needs business to do well as a major employer and taxpayer, and together we can establish the conditions to enable that. Those conditions require effective policy, public services and network industries, which are critical to every South African.”
“The collaboration is making tangible progress, and after last week’s meeting, I anticipate that we will make more progress quicker.”
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