President Cyril Ramaphosa’s state of the nation speech on Thursday (11 February) is an opportunity to set down policy objectives and provide clarity on what the rest of the year is going to consist of, says Business Leadership South Africa chief executive Busi Mavuso.<\/p>\n
Mavuso said that the first issue that Ramaphosa will need to address is precise guidance on the country’s vaccine strategy.<\/p>\n
“We want a clear rollout plan that details when vulnerable groups will receive vaccinations,” she said. “That will in turn make it clear when stress on hospitals will reduce and when the need for lockdown measures will dissipate.<\/p>\n
“Business now needs that clarity in order to plan around the risks of a third wave which may reach us before critical mass of vaccinations has been achieved.”<\/p>\n
However, Mavuso said this is probably the ‘easy part’ of Ramaphosa’s address.<\/p>\n
She said that the president also needs to detail how the country can lift its head and look forward to the future, post the pandemic.<\/p>\n
“The foundations need to be set now. Business worked alongside other social partners and government to develop the economic recovery plan that has been backed by cabinet,” she said.<\/p>\n
Mavuso said that in last year’s speech, the president promised that spectrum auctions and a fifth round of the renewable energy programme would happen in 2020. However, these still haven\u2019t come to pass.<\/p>\n
Of course, the pandemic interrupted many plans, but it is now crucial that the president provides evidence that these will happen in short order, she said.<\/p>\n
“Along with these we urgently need wider reforms to energy policy, finalising long-promised reforms to visa policies for scarce skills, solidifying the infrastructure strategy to actually reach construction stage, and finalising mining sector reforms.”<\/p>\n
Mavuso said that clarity is also needed on Eskom’s energy security and the state of infrastructure projects in the country.<\/p>\n
She said that infrastructure has been central to the president’s economic strategy since he took office, calling for private investment to spur development.<\/p>\n
“Yet there have been no new public-private partnerships registered since and therefore no opportunity to invest. In the economic recovery plan there is clear agreement that the Public Finance Management Act, Municipal Finance Management Act and their respective regulations need to be amended to make both PPPs and on-budget infrastructure delivery more straightforward.<\/p>\n
“The public sector has suffered a skills exodus and the cumbersome procurement process frustrates those left from quickly delivering infrastructure at all levels of government.”<\/p>\n
Mavuso said that business is ready pick up the infrastructure baton and run with it. Regulatory clarity would trigger major investment from communications infrastructure to mining exploration, without costing the state a cent. Similarly, an appropriate PPP framework would open many opportunities for the private sector to invest in, construct and operate public infrastructure.<\/p>\n
“We are ready to support the effort. This week, the president can earn our trust and confidence to work with government on delivering. The future we see ahead would be far brighter for all South Africans,” she said.<\/p>\n