{"id":775960,"date":"2024-06-09T15:00:00","date_gmt":"2024-06-09T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=775960"},"modified":"2024-06-07T15:33:34","modified_gmt":"2024-06-07T13:33:34","slug":"south-africans-dump-the-government","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/775960\/south-africans-dump-the-government\/","title":{"rendered":"South Africans dump the government"},"content":{"rendered":"\n<p>South Africans have reduced their reliance on government services from 2019 to 2023. It ranges from education to electricity, policing, and public housing.&nbsp;<\/p>\n\n\n\n<p>The declining quality and availability of public services has resulted in many South Africans turning to private-sector alternatives that provide similar services to their government counterparts, such as private security, healthcare, and education.&nbsp;<\/p>\n\n\n\n<p>A reduction in electricity usage from government-run Eskom has been well documented, with demand declining nearly 8% year-on-year.<\/p>\n\n\n\n<p>However, a significant reduction in the usage of other government services has gone mostly unnoticed and only recently started making headlines.<\/p>\n\n\n\n<p>In a report released late last year, Stats SA&nbsp;<a href=\"https:\/\/www.statssa.gov.za\/?p=16775#:~:text=According%20to%20the%20report%2C%20the,individuals%2016%20years%20and%20older.\" target=\"_blank\" rel=\"noreferrer noopener\">revealed<\/a>&nbsp;a sharp reduction in South Africans interacting with various government services.&nbsp;<\/p>\n\n\n\n<p>It attributed this decline to a lack of access to government services, a lack of trust in state-run institutions, and individual experiences of corruption impacting the state\u2019s legitimacy.&nbsp;<\/p>\n\n\n\n<p>Financial services firm PwC analysed this report and said the decline reflected a steady deterioration in the quality of public services.&nbsp;<\/p>\n\n\n\n<p>The state\u2019s capacity had been withered away due to corruption and incompetence, resulting in South Africans turning to private alternatives.&nbsp;<\/p>\n\n\n\n<p>The country\u2019s public sector is also under increasing pressure due to a reduction in funding and resources, making it incapable of providing the quantity and quality of services it once did.&nbsp;<\/p>\n\n\n\n<p>Stats SA\u2019s report shows that the decline in government service usage is widespread, spanning all sectors and even relatively well-run institutions.<\/p>\n\n\n\n<p>In 2019\/20, over 43% of individuals used public transportation services. However, this figure dropped to 37.5% in 2022\/23.&nbsp;The use of public clinics declined from 35,4% to 31,7% in the same period.&nbsp;<\/p>\n\n\n\n<p>In contrast, services such as courts (2.4%), public housing services (2.4%), and correctional services (0.5%) were among the least used in 2022\/23.<\/p>\n\n\n\n<p>The declining use of government services is shown in the graph below from Stats SA.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2024\/06\/image-10.png\" alt=\"\" class=\"wp-image-53108\"\/><\/figure>\n\n\n\n<p>South African businesses have engaged the government to help it capacitate key state institutions, particularly state-owned enterprises.&nbsp;<\/p>\n\n\n\n<p>Business Unity South Africa (BUSA) has been working with the government to address the challenges faced in delivering energy, logistics, and crime services.&nbsp;<\/p>\n\n\n\n<p>Their collective efforts pave the way for third-party train operators to enter the rail logistics market in 2024.<\/p>\n\n\n\n<p>Standard Bank Group CEO Sim Tshabalala has even&nbsp;<a href=\"https:\/\/dailyinvestor.com\/finance\/41993\/sim-tshabalala-pleads-with-leaders-to-make-it-easier-to-do-business-in-south-africa\/\" target=\"_blank\" rel=\"noreferrer noopener\">pleaded<\/a>&nbsp;with the government to capacitate the state and thus make it easier to do business in South Africa.&nbsp;<\/p>\n\n\n\n<p>Tshabala said the country has incredible competitive advantages but has failed to capitalise on them. He called for the state to improve its efficiency and capitalise on them.&nbsp;<\/p>\n\n\n\n<p>\u201cPlease improve the quality of our institutions. In the case of South Africa, we use the lovely phrase \u2018Please capacitate the public sector\u2019.\u201d<\/p>\n\n\n\n<p>\u201cSome parts of the public sector are excellent, such as the National Treasury and the Reserve Bank. Replicate what is happening in those across the board,\u201d Tshabalala said.&nbsp;<\/p>\n\n\n\n<p>\u201cPlease capacitate the state,\u201d he repeated. \u201cPlease professionalise it. Please continue to make doing business easier.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2023\/03\/Sim-Tshabalala-1024x576.jpg\" alt=\"Standard Bank CEO Sim Tshabalala\" class=\"wp-image-11116\"\/><figcaption class=\"wp-element-caption\">Standard Bank CEO Sim Tshabalala<\/figcaption><\/figure>\n\n\n\n<p>However, governance expert Dr Harlan Cloete explained that it is not as simple as recapacitating the state and upskilling government employees.&nbsp;<\/p>\n\n\n\n<p>The lack of capability and capacity is the root cause of many governance failures in South Africa, but there is a deeper issue at play.&nbsp;<\/p>\n\n\n\n<p>The government has spent R40 billion in the past decade to upskill its employees and enhance the efficiency of government services.&nbsp;<\/p>\n\n\n\n<p>However, this has failed to improve access to public services and their quality, resulting in people losing trust in the government and turning to the private sector.&nbsp;<\/p>\n\n\n\n<p>Cloete said the problem is that even if government institutions and state-owned companies are given more resources and employees are upskilled, it is still a toxic environment to work in.&nbsp;<\/p>\n\n\n\n<p>A toxic environment, filled with corruption, makes employees less productive and government services less efficient.&nbsp;<\/p>\n\n\n\n<p>He explained that, in some cases, the wrong people are employed, and no matter how much the government spends to upskill them, they cannot deliver.\u00a0<\/p>\n\n\n\n<p><em>By Shaun Jacobs. This article was first published by Daily Investor. <a href=\"https:\/\/dailyinvestor.com\/south-africa\/53107\/south-africans-kiss-government-services-goodbye-2\/\"><strong>Read the original here<\/strong><\/a>.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/trending\/775737\/anc-pins-hopes-on-government-of-national-unity\/\">ANC pins hopes on Government of National Unity<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From education to policing and housing, South Africans are giving government services a skip and looking elsewhere for change.<\/p>\n","protected":false},"author":93,"featured_media":728537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-775960","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=775960"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775960\/revisions"}],"predecessor-version":[{"id":775962,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775960\/revisions\/775962"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/728537"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=775960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=775960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=775960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}