Business welcomes SONA plans to boost economy

PLANS to improve ease of doing business and boosting investment in the country as outlined in the State of the Nation Address (SONA), have been welcomed by the South African Chamber of Commerce and Industry (SACCI).

These include improving efficiency at ports, ensuring reliable energy supply and issuing of water use licences within a reasonable time frame, among others.

‘SA’s major challenges in the area of affordable and consistent energy availability to drive business, industry and commerce should receive the level of attention promised at SONA,’ SACCI said in a statement.

‘Similarly, the action on fixing Stateowned Enterprises (SOEs) to contribute to economic growth and the planned actions around creating a capable state are good interventions.’

President Cyril Ramaphosa told Parliament government is working hard to fix the capabilities of the state, as well as creating an operational environment favourable to doing business.

‘Working together with social partners, we have continued to address several issues that have been barriers to job creation.

‘Water use licences, which are essential to operations on farms, factories and mines, have previously taken an inordinately long time to process, sometimes up to five years.

‘We are able to announce that water use licences will now be issued within 90 days.

‘It also used to take months to have a company registered.

Through the Bizportal platform, one can now register a company in one day, register for the Unemployment Insurance Fund and the South African Revenue Service and even open a bank account,’ Ramaphosa said.

This was commended by University of Zululand economist, Dr Brian Mazorodze, who said this is a significant step as it eases the cost of doing business.

‘Other intended measures include an overhaul of the Durban port to reduce delays and costs, which is undoubtedly a big plus as it facilitates regional and continental trade while creating jobs in the process,’ Mazorodze said.

‘Several studies have shown that by eliminating costs and delays at sea ports, trade gains increase.’