Business Leadership South Africa:
PRESIDENT Ramaphosa’s State of the Nation Address (Sona) address suggests that the government will not only build on commitments made at the investment summit last year, but also move swiftly to unblock administrative and regulatory bottlenecks to domestic and foreign direct investment.
The President’s prioritisation of regulatory issues as the single most important impediment to growth is not only welcome, but is vital if the compact between government, business and labour to create jobs and advance inclusive growth and transformation is to be grounded in tangible results.
We know that addressing the growing regulatory burden, coupled with regulatory uncertainty, can be a major game changer for the economy.
In this regard we are particularly pleased that the President highlighted the Public Private Growth Initiative to mobilise investment in 19 sectors of the economy as a signal achievement in the developing partnership between the government and business.
In their presentations to the government recently, chief executives and chairpersons from 19 sectors indicated in summary that an increase in sector contributions to gross domestic product of 3 to 5 percent is attainable over the next five years, subject to prevailing circumstances in specific sectors and the expected multiplier impact on associated businesses.
The aggregated projected investment from a select number of the 19 sectors amounts to more than R500 billion over the next four to five years if a high-growth path is pursued in our economy.
We have consistently argued that both the removal of inhibitors to growth and fundamental socio-economic transformation, including an improved education system and the development of a more robust skills base, is integral to accelerating growth in a more inclusive and sustainable way.
We therefore welcome the President’s prioritisation of two years of compulsory Early Childhood Development for all children before they enter Grade 1 to equip them to succeed in education, in work and in life.
Getting South Africa on to a highgrowth