Key interventions needed to grow economy
Cosatu looks to GNU to take lead in urgent action on SA ’ s crises
South Africa can never be accused of being a dull country. The past month has been anything but that. Workers are now keen to see the seventh administration hit the ground
running.
The government of national unity (GNU) needs to focus on key interventions to unlock the economy, create jobs, rebuild public services, tackle crime and improve the lives of the working class.
With a 42% unemployment rate and weak economic growth, we do not have the luxury of time.
It is critical the GNU led by President Cyril Ramaphosa and the ANC accelerate the momentum set by the sixth administration and urgently make a number of interventions.
It must continue support for Eskom as it overcomes load-shedding by ramping up maintenance, bringing on board new generation, enabling it to enter the renewable energy space and moving to prepaid electricity as well as tackling criminal activities targeting the utility.
Transnet has begun to show progress with new leadership. It must be supported to modernise ports and end congestion by buying the right machinery, training and hiring more staff.
A sophisticated security plan in partnership with SAPS, the South African National Defence Force, the security sector, communities and industry is needed to protect our railway network. Fixing Transnet is key to unlocking the mining, manufacturing and agricultural sectors, creating jobs and generating revenue to fund public services.
A similar approach and focus is needed for Metrorail, which at its peak was transporting 10-million urban commuters daily. After the devastation of Covid, cable theft, arson and crime, it has lost 90% of its passengers. We have begun to see progress with most lines reopening and the remaining due by the end of 2024. It needs to win back the confidence of commuters. This will reduce road congestion and save workers money.
Minister of mineral & petroleum resources Gwede Mantashe this year announced the appointment of a service provider to develop a modern mining rights application system.
This must be expedited to unlock mining investments to grow the backbone of the economy and turn the tide on retrenchments.
Critical work was done under former trade, industry & competition minister Ebrahim Patel to build master plans for key jobs in intensive growth sectors, bringing together government, business and labour to tackle economic obstacles. Green shoots are already showing, such as commitments by the major retailers to increase their stock of locally produced goods by 50% and significant growth in the number of locally manufactured vehicles. These need to be nurtured and expanded.
The government must reinvigorate the buy-local campaign, with buy-in by the state, private sector, labour and ordinary consumers. Key to this is the president’s pending assent to the Public Procurement Bill, which will compel the state to support locally produced goods.
The medium-term budget policy statement needs to drastically increase funding for industrial and export schemes if we are to boost local industries.
The new administration must ensure that funds allocated for infrastructure, a substantial R900bn, are spent well, together with the capacitation of municipalities to tackle corruption and ensure the construction mafia are dealt with. This includes rebuilding municipal services, from sanitation to roads.
While we unlock the economy, we must extend solidarity to the poor and unemployed by ramping up the presidential employment programme to accommodate at least 2-million active participants and linking social relief of distress grant recipients to skills and employment opportunities.
South Africa is traumatised by our endemic levels of crime and corruption, yet the South African Revenue Service (Sars) has shown what can be achieved if we deploy competent management, hire staff and invest in capacity. This is what we need to do for the SAPS, the National Prosecution Authority and the courts. We have begun to see noticeable victories in this war. Our law enforcement officials want to deliver, but they need our support.
A similar approach is needed for other frontline services, from home affairs to health care and schools. But if we do not invest in public services, fill vacancies and pay staff a living wage we should not be surprised when things deteriorate.
Sceptics will ask where the revenue will come from to fund these? First, by growing the economy and removing obstacles, the taxes we need will be generated. Recent revenue declines were due to Eskom and Transnet’s challenges. Second, we need to write Sars a blank cheque on condition that it increases tax compliance from 64% to 70% within two years, thus generating an extra R120bn annually. We cannot continue to allow the wealthy and illicit trades to scam the system.
Despite great odds, we have stabilised the situation on many fronts, yet many crises remain unresolved, and some are worsening. The solutions lie in our hands as government, businesses, labour and ordinary South Africans. The GNU must lead, but we too must play our role.
What we cannot afford to do is to continue along a path of business as usual, nor to normalise our horrific levels of crime and corruption or accept a 42% unemployment rate. We have the resources we need. What we do not have is unlimited time. If we are to win these battles, we must collectively show the leadership they demand.
Cosatu will continue to play its role.