Government leaves gap to fill

STATE FAILURE OPENS DOOR There’s plenty of room for business to offer services that were traditionally the preserve of the state.

but infrastructure is poorest.

In urban areas, the need for new schools can be met by private companies able to provide the service at increasingly affordable rates.

In a country where service delivery is a constant issue, greater private sector involvement makes sense. SA’s private hospitals are another obvious example.

Government healthcare has been under enormous pressure for a long time, but SA’s private facilities are among the best in the world.

These private services are sometimes criticised as being elitist and inaccessible to the majority of the population, but that ignores the reality that the state has failed to provide the level of schooling or healthcare that a decent chunk of the population wants.

If the private sector can do so, this actually supports government’s objectives to provide universal education and healthcare.

There are also other areas where poor state delivery has created opportunities for private sector players. Energy Partners was born from the late 2000s’ load-shedding crisis. It provides energy solutions to businesses and homes to make them less reliant on Eskom-supplied power.

CEO Karel Cornelissen believes globally, utility provision is moving from a centralised to a decentralised model.

As it’s becoming increasingly affordable and practical for people to generate their own electricity, more will do so. This makes them less reliant on the state, and allows the state to focus more resources on providing services to those who really need its support.

The state doesn’t have the capacity to do everything for everyone. Where the private sector can step in is hugely beneficial to the country, as it frees up state resources to be focused where they’re most needed.

It’s also a great opportunity for entrepreneurs.