MEDIA STATEMENT – Re-elected President Ramaphosa can accelerate growth agenda

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Johannesburg, 14 June 2024 – Business Leadership South Africa (BLSA) welcomes the continuity associated with the re-election of Cyril Ramaphosa as South African president, an outcome which indicates that the country’s reform agenda will advance, and its important democratic institutions will be safeguarded.

As South Africa’s political environment matures, President Ramaphosa’s new government of national unity must now seize this opportunity to demonstrate policy clarity, regulatory certainty and the principles of democratic governance, to unite South Africans in building a more successful, modern, capable and competitive state. BLSA calls on the President to appoint a capable and ethical Cabinet.

BLSA CEO, Busisiwe Mavuso, said: “We urgently need to turn around South Africa’s economic performance to move our country toward greater prosperity and meet the needs of a growing population. The government must assure all its citizens, as well as local and international investors that South Africa is open for business, underpinned by a robust constitutional democracy, well-managed and capable institutions and the rule of law.

“As business, we look forward to a government founded on solid non-negotiable principles, which prioritises substance over style, puts the country first, ensures that men and women of integrity guide South Africa on the path to growth and prosperity and deliver stability — a government of meritocracy and with professionalised public service delivery.

“The business community has been very clear and collaborative: for South Africa to grow and thrive it needs responsive economic policy, regulatory certainty, efficient network industries, a capable state, effective public services, safety and security, the rule of law and social stability. Critical to achieving this outcome is an effective Parliament and well-functioning provincial legislatures, which together provide the necessary oversight and accountability.

“The primary task now is for all spheres of government to accelerate the momentum. Government is building on a solid foundation – the sixth administration made good progress in stabilising institutions and driving the reforms necessary to get our economy out of the low-growth, low-employment trap South Africa has been stuck in for over a decade. Through robust engagement with business and other stakeholders, President Ramaphosa has managed to mobilise private sector resources and skills to support interventions.”

“The responsibilities ahead are numerous and challenging and we call on President Ramaphosa to actively lead the country’s seventh administration, build on the progress made, and accelerate growth- and jobs-rich initiatives. As a business organisation that believes in South Africa’s future and shares the values set out in the Constitution, BLSA stands ready partner with the government and civil society to deliver economic growth, transformation and inclusion, and create a South Africa of increasing prosperity for all.”

The Operation Vulindlela unit that was established between the Presidency and National Treasury to accelerate implementation of reforms has been remarkably successful thanks to the tenacious efforts of a dedicated team. Operation Vulindlela has been key in restructuring the electricity system to put the worst of loadshedding behind us and create a competitive electricity generation system that could, in time, even reduce the costs of power. Our broken logistics system is being slowly repaired on the roadmap that Operation Vulindlela ushered through.

“These kinds of reforms take years to shift the trajectory of our economy as they slowly work their way through into the investment decisions of firms from improved electricity to logistics reliability. The challenge for any democratic government is to make the choices now that will pay off, especially in the medium and long term. We have had to deal with the legacy of decisions not made decades ago, when we should have been liberalising and investing in the electricity, water and logistics systems. I am pleased that over the past five years, government has been able to begin making the changes needed to deliver long-term payoffs. Let’s pick up the momentum and build on this good progress,” said Mavuso.

Progress towards a better future, where economic growth is sufficient to address South Africa’s unemployment crisis, however, requires a stable and united government. We call on all parties in the government of national unity to reach agreements for the good of the country’s growth trajectory, and which can hold for the full term of the seventh administration. In doing so, they will deliver much needed and welcome confidence and stability.

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