REFLECTING ON ASPECTS OF SONA 2019

PRESIDENT Cyril Ramaphosa delivered an impressive and courageous State of Nation Address (Sona) last week.

It was clear he was speaking as the President of South Africa and not merely as leader of the ANC.

The opposition tended to fob the speech off as just a set of promises, made by him last year. But a more circumspect analysis of both content and tone of the speech is necessary.

His plan in relation to Eskom is the most significant aspect of his speech. He made it clear that the status quo at Eskom, with its debt of about R437 billion is unsustainable and poses a dire threat to our entire economy, and therefore requires radical change.

This necessitates an unbundling of the electricity giant into three separate but inter-related entities, first for generation; second for transmission; and third for distribution.

Ramaphosa did not consult the unions and Zwelinzima Vavi, on behalf of the South African Federation of Trade Unions, expressed his displeasure with the proposed unbundling and consequent loss of jobs it might entail, describing it as a “declaration of war”.

In effect Ramaphosa appears to have thrown down the gauntlet as far as the trade unions are concerned, not unlike the formidable Margaret Thatcher, in the way she successfully challenged the trade unions in the UK.

In this regard Thatcher was successful and changed irrevocably the UK’s political configuration. Ramaphosa appears to be on a similar mission, since if Eskom in its present state collapses it will take both the economy and the state down with it.

In taking on the trade unions Ramaphosa has displayed commendable courage involving a political risk.

It was also announced that the traditional banquet after Sona, which would have cost about R4.5million, had been dispensed with. This is an indication of fiscal discipline that could become the hallmark of the Ramaphosa administration.

South Africa’s economic crisis demands that Ramaphosa pursue fiscal discipline – another economic strategy of the redoubtable Thatcher. Such a strategy is obviously not populist. It will require pruning of a bloated Cabinet. It will involve the abandonment of the notorious policy of ANC cadre deployment, and the appointment of qualified public service personnel.

Ramaphosa indicated the most urgent tasks that had to be addressed: inclusive growth and employment; improving the educational system and developing essential skills; improving living conditions for all, especially the poor; accelerating the fight against corruption; increasing the capacity of the state to do, inter alia, the above.

Although the above have been enumerated before in Sona addresses, the tone and content of the president’s speech reflected a determination and commitment palpably absent during the disastrous Zuma administration.

The president dealt with a number of other issues. These included the impact of the 4th industrial revolution, the potential of the tourist industry and the importance of Early Childhood Education.

It was to be expected opposition party leaders would find fault with virtually everything the president said, considering South Africa is in robust election mode. However, favourable comment has come from economists and the press.

Ultimately the proof of the pudding is in the eating, and we will have to see what action actually takes place.