Government has established a partnership with business to work together in four critical areas – energy, logistics, crime and corruption, as well as employment – to give impetus to economy-boosting efforts currently being underway.
President Cyril Ramaphosa said this while delivering an address to the nation about the country’s economic recovery progress.
“We continue to collaborate with organised labour and civil society to ensure a whole-of-society approach to addressing the most important challenges our country faces. All of this gives us hope that we are turning the tide on the many challenges that we face,” Ramaphosa said.
This month marks three years since government embarked on the Economic Reconstruction and Recovery Plan, which outlined the actions that it would take to rebuild the economy and create jobs in the wake of the Covid-19 pandemic.
Ramaphosa acknowledged that the last three years have been extremely challenging, as the country emerges from more than a decade of stagnant economic growth, compounded by the impact of the pandemic.
“We are working to reverse the legacy of the past era of corruption and mismanagement of our state-owned enterprises, which has left us with a persistent energy crisis and an inefficient ports and rail network.”
He said the government is also contending with a range of global and domestic pressures which have set back South Africa’s economic recovery.
“And yet, there are clear signs that our efforts are showing results. Electricity supply is improving. Jobs are being created.
“Houses, roads, bridges and dams are under construction. Law enforcement agencies are cracking down on criminal syndicates. The proceeds of State capture are being recovered. These are reasons for hope.”
In the midst of severe load shedding and increased global volatility, Ramaphosa highlighted that the economy has continued to grow, albeit too slowly. He added that the economy has shown a significant degree of resilience and is now larger than it was before the pandemic.
Turning to one of the main challenges in the country, Ramaphosa told the nation that progress is being made towards ending load shedding.
“We are making progress towards ending load shedding. Our greatest priority has been to reduce the severity and frequency of load shedding to achieve energy security. Over the last few months, there has been a measurable decline in the severity of load shedding.”
He noted that the Energy Action Plan he announced in July last year is showing positive results, “giving us greater confidence that we will bring load shedding to an end”.
Ramaphosa said that regulatory reforms that have been initiated have enabled a massive increase in private investment in electricity generation, with over 12 000 megawatts of confirmed projects in development.
Following the introduction of tax incentives and financing mechanisms, he said that the amount of installed rooftop solar has more than doubled to over 4 500MW in the last year.
“The steady progress we are making in resolving the energy crisis is a reason for hope,” he said.
Another commitment made in the Reconstruction and Recovery Plan was to fix South Africa’s infrastructure through renewed investment in the maintenance and construction of new projects.
Ramaphosa highlighted that several significant infrastructure projects are underway.
“These projects are both contributing to greater economic activity and jobs, and providing much-needed infrastructure for the growth of our economy and the needs of our people.
“These infrastructure projects range from social housing, road construction, rural bridges, and dam constructions.”
He further highlighted that the Passenger Rail Agency of South Africa has to date restored operations on 26 out of 40 commuter rail corridors.
To continue with the restoration of the country’s commuter rail corridors, he said R50 billion will be spent over the next three years to modernise the passenger rail network.
As part of the infrastructure build, Ramaphosa said that the sixth administration is undertaking significant water infrastructure projects. These include Phase II of the Lesotho Highlands Water Project and the Mzimvubu Water Project in the Eastern Cape, which will involve an investment of R17 billion.
“Around the country, water treatment works are being upgraded, pumping stations are being repaired, and pipes are being laid to get water to under-serviced areas.”
Ramaphosa said the country is making progress in restoring its logistics system to world-class standards, so that SA can export goods to global markets.
The National Logistics Crisis Committee is overseeing a range of interventions to stabilise and improve the performance of the logistics system in the short term, in addition to ongoing reform to improve its efficiency and competitiveness in the long term.
He said the Transnet board has developed a turnaround plan, which aims to increase volumes transported on SA’s network.
“Progress is also being made with the introduction of private sector participation in container terminals. I want to make it clear that South Africa’s port, rail and electricity infrastructure are strategic national assets, and that they will remain in public ownership.
“However, introducing competition in operations – both in electricity and logistics – will create greater efficiency and reduce prices in the long term, just as the introduction of competition in the telecommunications sector has led to greater choice and enormous benefits for consumers,” he said. –SAnews.gov.za
