Public-private partnerships critical to SA’s future

Collaboration between the Public Service and private sector is the key to the country’s economic recovery

The private sector in South Africa plays an enormous role in our economy. Our country is home to some of the biggest companies in Africa, across a diverse array of industries.

The private sector boasts considerable resources and world-class expertise, while providing jobs to millions of people. During and after the coronavirus (COVID-19) pandemic, the public service can draw on the opportunities presented by the private sector. Through public-private partnerships (PPPs), South Africa can emerge from recession and forge a new path forward. A number of government programmes provide the perfect platform to cultivate partnerships with the private sector and in the coming months and years, these initiatives could hold the key to the economic recovery and future growth of South Africa.

All government departments have mechanisms in place to support the creation of PPPs. On an overarching level, the

Youth Employment Service (YES) programme, launched when President Cyril Ramaphosa took office in 2018, has already shown tremendous potential to create employment opportunities by working handin-hand with corporate partners.

The initiative, which places youth in 12-month paid internships, has been met with a positive response from the private sector. More than 1 000 companies are currently signed up, providing quality work experiences to over 35 000 youth.

The work of YES has not stopped during lock

down. A total of 52 new businesses have signed up during this period, and sub-programmes have been tailored to the changed business environment brought by COVID-19.

A prime example is government's partnership with various private sector companies, to get township businesses on board to create 118 000 facemasks in just seven weeks. Made in Diepsloot and Alexandra, the masks were exported to Europe.

“This consignment of masks exported to Belgium could offer a blueprint for helping township businesses improve their quality and competitiveness to the point that they can tap into export markets,” says YES CEO Tashmia Ismail.

“Thanks to our partnerships, it is now possible for YES to offer local economies some relief. Each mask that is sold drives money back into the hands of young craftspeople and entrepreneurs and into township economies.”

Tumelo Chipfufa, the CEO of Cova Advisory, which advises government on a number of programmes, says that the YES programme has numerous advantages.

“The YES programme is an excellent way for businesses to invest in the skills of young people, unearth talent and improve the competitiveness of their businesses while at the same time supporting the transformation programme of the country.”

Chipfufa highlights other government programmes specifically geared towards stimulating public-private partnerships. He points out that public servants should seek to promote these programmes, as the private sector often does not come on board.

“Within our line of work, linking companies to opportunities for government grants and incentives, there are a lot of untapped opportunities for skill development work that is sometimes not taken up by the private sector.”

The programmes Chipfufa identifies include the Jobs Fund at National Treasury – which cofinances projects by public, private and nongovernmental organisations that lead to job creation. Funding is provided through four 'funding windows', namely enterprise development; infrastructure investment; support for work seekers and institutional capacity building.

Najwah Allie-Edries, the Head of the Jobs Fund, says that mitigating the impacts of COVID-19 will require increased partnerships with the private sector.

“The expected social and economic impact of COVID-19 require government to effectively partner with the private sector, civil society and others to harness deep implementation capability to achieve rapid scale in its response to the impact of the pandemic.”

The Strategic Partnership Programme at the Department of Trade Industry and Competition is another programme that can be capitalised on.The programme is designed to 'encourage large private sector enterprises, in partnership with government, to support, nurture and develop SMEs within the partner's supply chain or sector to be manufacturers of goods and suppliers of services'.

In addition, Chipfufa highlights the potential of incubator programmes such as those offered by the Small Enterprise Finance Agency.

“These are all really excellent instruments for building skills and enterprises and empowering communities. Companies and entrepreneurs need to do better in educating themselves about these opportunities.”

Notwithstanding its devastating human and socio-economic impacts, the COVID-19 pandemic

has given public servants an opportunity to find new solutions.

From a healthcare perspective, the pandemic has provided a snapshot of how the National Health Insurance (NHI) will potentially function in the future.

The public and private healthcare sectors have collaborated intensively to expand healthcare capacity, by making hospital beds available, setting up quarantine sites and expanding the number of healthcare workers available to fight the virus.

In his adjusted budget presentation in July, Health Minister Zweli Mkhize said that through these partnerships, platforms have now been laid for the establishment of the NHI.

“We are pleased that during the past few months the NHI information systems capacity has been augmented, strengthened and dramatically improved.The investments made in these improvements will all remain and enhance the capability of the department to manage the health system into the future.”

President Ramaphosa has stressed that economic recovery after COVID-19 will most likely be driven by infrastructure development – through a number of flagship projects, including those arising from PPPs.

“The coronavirus pandemic has made infrastructure investment even more compelling, even more important and even more urgent. That is why we have placed infrastructure at the centre of the stimulus our economy needs to achieve a sustainable recovery,” President Ramaphosa said during his address at the Sustainable Infrastructure Development Symposium South Africa.

He added that the public and private sectors have collaborated in producing a credible and robust project pipeline.

“As we work at strengthening this new-found relationship with the private sector, government will work towards addressing investment policy uncertainties, accelerating state-owned enterprise reforms and formulating necessary infrastructure policy reforms,” said the President.