South African President Cyril Ramaphosa was told to cut bureaucracy and focus on fixing the country\u2019s energy crisis if he wants to revive Africa\u2019s most industrialised economy.<\/p>\n
Water, transport and port services must be \u201cdramatically improved,\u201d the Presidential Economic Advisory Council said in a briefing note submitted to Ramaphosa ahead of his State of The Nation address next month and seen by Bloomberg. Two additional bidding rounds for the provision of renewable energy should be held this year, it said.<\/p>\n
South Africa\u2019s economy, which was already in recession when the Covid-19 pandemic hit, remains stuck in its longest downward cycle since World War II. Its unemployment rate is the highest on a global list of 82 countries and the Eurozone monitored by Bloomberg. Power outages occur on a regular basis and discourage investment.<\/p>\n
\u201cGrowing the economy is the only viable strategy for getting South Africa out of its current negative situation,\u201d according to the note. \u201c2022 must be seen as a watershed year for our country\u2019s electricity problems. 2022 must be an inflection point.\u201d<\/p>\n
Ramaphosa has staked his presidency on enacting economic reforms to reboot a stagnant economy. Limited progress since he took the post in early 2018 has led to a chorus of criticism from opposition parties, business and labour unions.<\/p>\n
Revamped Land Bank<\/strong><\/p>\n Tyrone Seale, a spokesman for the president, declined to comment on the document.<\/p>\n In addition to ordering more electricity plants, the government must ensure that the National Energy Regulator of South Africa does not stand in the way of private companies building their own facilities of as much as 100 megawatts capacity, the advisory council said.<\/p>\n If the government is to encourage growth in the number of Black commercial farmers it will need to ensure the turnaround of the troubled Land and Agricultural Development Bank of South Africa is successful, it said. That bank will need to become state funded and will have to provide finance at attractive rates, the council added.<\/p>\n The PEAC also suggested:<\/p>\n\n
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