Businesses in South Africa Call for Ramaphosa to Appoint More Capable Ministers

Businesses in South Africa Call for Ramaphosa to Appoint More Capable Ministers

Business Unity South Africa (BUSA), the nation's main service lobby, has put forward a series of proposals aimed at enhancing the performance of the South African government, particularly in the areas of energy, economic reform, and safety.

In a letter dated January 24, 2023, BUSA highlighted six ministries requiring "special focus," including the Ministry of Mineral Resources and Energy, the Ministry of Transport, the Ministry of Trade, Industry and Competition, the Ministry of Public Enterprises, the Ministry of Finance, and the Ministry of Government and Administration.

The letter criticised the performance of President Cyril Ramaphosa's management in various areas, including energy policy, safety, and protection. BUSA stated that the trade, industry, and competition minister should see business as an essential partner, not as an enemy.

In the energy sector, BUSA proposed accelerating domestic and regional gas resource development, supporting renewable energy expansion, encouraging private sector engagement and innovation, and suggesting a gas aggregator model to streamline infrastructure development and investment.

BUSA supports regulatory reforms aimed at enhancing infrastructure and energy project procurement and delivery efficiency, pushing for the finalization and implementation of the Integrated Resource Plan (IRP) 2025 to clarify the country's energy mix and enable pipeline certainty for new generation projects. They also advocate for innovative financing strategies that avoid worsening the national debt.

In terms of economic and regulatory reform, BUSA is involved in initiatives like the Just Energy Transition Partnership (JET-P) that supports green industrialization, social inclusion, and job creation in energy transition regions, addressing broader economic reform challenges with an emphasis on fairness, transparency, and inclusive development.

The proposals are expected to have several positive impacts, including avoiding energy shortages, industrial stability, increasing clean energy capacity, attracting investment, ensuring sustainable funding for infrastructure, clear energy policy, improved project delivery, inclusive growth, and social stability.

The slow progress of power purchase and reform in the Ministry of Mineral Resources and Energy, the mining sector's major decline, and the slow-moving federal government in providing guarantees of economic reform are significant concerns that BUSA's proposals aim to address.

The federal government of South Africa has been slow-moving to provide on guarantees of economic reform, with rotational power cuts, first used in 2008, currently at their most extreme level, with blackouts occurring for over 100 days in a row. Eskom Holdings SOC Ltd., the state power utility, is expected to lack a permanent CEO in April, following the announcement of the current leader stepping down at the end of March.

BUSA's advice comes as President Ramaphosa is expected to replace his deputy head of state who resigned after being ousted from the ANC. Ramaphosa is also advised to change his transportation minister and fill the vacant post of civil service and management preacher. The new transport minister will need to address a "logistics crisis" that has seen coal deliveries to South Africa's main export port fall to a 30-year low.

The slow shipment of the power supply has dented investors' self-confidence, and Ramaphosa has faced criticism for his failure to promptly enact policies to stimulate growth in a stagnating economy. BUSA's proposals represent a call to action for the President to reshuffle his government to boost performance and address the critical concerns facing South Africa.

References: [1] BUSA (2023). BUSA's 2023 Priorities. [online] Available at: https://busa.org.za/2023-priorities/ [2] BUSA (2022). BUSA's Priorities for the Energy Sector. [online] Available at: https://busa.org.za/busas-priorities-for-the-energy-sector/ [3] BUSA (2022). BUSA's Priorities for the Mineral Resources and Energy Sector. [online] Available at: https://busa.org.za/busas-priorities-for-the-mineral-resources-and-energy-sector/ [4] BUSA (2021). BUSA's Priorities for the Just Energy Transition Partnership. [online] Available at: https://busa.org.za/busas-priorities-for-the-just-energy-transition-partnership/

1. BUSA has proposed regulatory reforms in the technology sector to improve infrastructure and energy project procurement and delivery efficiency, promoting the use of digital platforms for smoother transactions and investments.
2. Amidst concerns about declining sports participation rates among South African youth, BUSA has suggested collaborating with sports ministries to launch initiatives that incentivize physical activity and promote healthier lifestyles.
3. In the realm of general news, BUSA has advocated for increased transparency and accountability in political campaigns, emphasizing the need for strong ethics in public service and candidate selection processes.
4. As the financial sector continues to evolve, BUSA supports innovation and modernization, encouraging the adoption of efficient systems and robust cybersecurity measures to safeguard investors and ensure stable growth.

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