BLSA’s CEO’s Weekly Newsletter – Cabinet has brought new energy to government already
POSTED ON: July 7, 2024 IN by Admin
By Busisiwe Mavuso
When the president announced the cabinet, he emphasised that it is time to serve the people of South Africa, and not to play party politics.
Since its announcement a week ago, the cabinet has already brought new energy to government. I have been encouraged by the speed with which several new ministers have embraced their roles, engaging with staff of their departments and with the public. We’ve seen important public announcements from the new ministers in the departments of trade, industry and competition, home affairs, public works, basic education and others. I’ve seen enthusiasm and an immediate focus on the right issues that are key to making a difference for the country from visa reform to fixing basic literacy and numeracy.
What I’ve heard so far is good for business confidence, which is one of the key ingredients we need to get the economy growing again.
When the president announced the cabinet, he emphasised that it is time to serve the people of South Africa, and not to play party politics. That is exactly right. Party politics must not be allowed to interfere with a focus on delivery as a coherent and effective cabinet. This principle must also underpin the way we in organised business work with, and expect delivery, from the cabinet. We must praise success and engage on challenges, no matter what the party colours of the minister.
Business can do much to support this positive energy. As I have written before, the previous administration did good work on many fronts to establish a reform agenda to confront our most pressing economic challenges. The progress made in electricity, logistics and crime, among other issues, has been helped by effective partnership with business. The private sector has skills and experience that can fix blockages and help ensure delivery. The new cabinet can rely on us to always be available for meaningful dialogue. We are committed to being proactive partners, bringing skills and experience to the table to help unlock challenges and ensure we achieve progress. We have many common goals, South Africa’s economic well-being being the most obvious. We are here to help find solutions to any obstacles that stand in the way of achieving those goals.
I also look forward to engagement at a provincial level. I am pleased that negotiations have also been finalised, with coalition governments for the first time in three of our nine provinces. In the case of Gauteng and KwaZulu Natal particularly, the two biggest contributors to the national economy accounting for almost 50% between them, business has a clear interest in seeing success. While it is critical that the government of national unity is stable and focused on delivery at national level, it is no less important at provincial level. Provinces are responsible for a large part of national spending. In critical areas like education and health, it is the provinces that lead delivery. Business is eager to see delivery improvements and we will support provincial governments where we can. It will be critical that coalition partners in the provinces similarly focus on the public interest and delivery, leaving aside party politics. The negotiations are done and it is now time for hard work.
I understand that the new administration will need to navigate differing viewpoints and priorities. When conflicts arise on the correct course of action, the right way to work through them is by relying on the evidence. Everyone will have beliefs about what works and doesn’t work, but what matters is pragmatism, undertaking research, testing new ideas, and embracing the course of action that will best deliver for the country. That Is how to foster confidence which will in turn lead to investment and expanded economic activity.
We must guard against the uncertainty that may emerge if the government, at both national and provincial levels, is seen as uncertain and unpredictable. That will damage confidence and take us backward, forcing investors and businesses to pause investment. Those risks grow when parties are not committed to a common course of action based on clear policies and reliable time frames for regulatory change. Unity and pragmatism are going to be critical, based on transparency and mutual respect.
I hope that mutual respect and pragmatism also characterises the relationship between business and the new administration. Our new ministers have started on the right foot and I am optimistic about what they can achieve. I look forward to engaging with them as they set out their agendas and begin to implement. Ultimately, delivery is what matters, including creating an environment for business to invest and grow employment and the economy.
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BLSA is a business organisation that believes in South Africa’s future and shares the values set out in the Constitution. BLSA is committed to playing its part in creating a South Africa of increasing prosperity for all by harnessing the resources and capabilities of business in partnership with government and civil society to deliver economic growth, transformation and inclusion.
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