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Ramaphosa has said the right things — now he needs to do them

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Sipho Pityana was president of Business Unity South Africa from 2018 to 2021.

The ANC’s January 8 statement made some encouraging noises about the role of the private sector in structural reform industries. But Cyril Ramaphosa’s emphasis on retaining state control here must be revisited, with the recognition that in some instances, bringing in much-needed private sector capital might include losing a controlling state interest.

There are encouraging signs in the outcome of the ANC’s 55th Elective Conference and the January 8 Statement of a return to political sobriety and leadership that can possibly navigate the nation out of its socio-economic morass.

After all, the build-up to that important event in our political calendar was preceded by noise threatening the removal of a reformist president and consequent policy uncertainty.

The January 8 statement is an emphatic endorsement of the policy and political direction that President Cyril Ramaphosa has been navigating — albeit at a frustratingly slow pace given the urgency of our challenges.

The euphoria of welcoming this is quickly tempered by the reality check that this is a party and government that has a pathetic track record of delivering on promises, offering conflicting messaging on its agreed path that often raises doubts on its reliability as a partner.

The January 8 statement highlights the economic structural reforms that hold promise for opening up the economy and unlocking the potential for investment, growth and job opportunities.

The recognition that the restoration of security of electricity supply requires more than just the urgent task of fixing Eskom — importantly noting the need for the speedy crowding in of private sector electricity generation — is significant. This hopefully puts paid to the foolish and moribund notion that the nation should be condemned to a single supplier. Important too may be an acknowledgement that the capacity Eskom needs to unleash the country’s growth potential requires a much larger investment than our fiscal position can afford today.

Private sector infrastructure investment is recognised as an opportunity in the so-called structural reform industries. The welcoming of private sector participation in the repositioning of SOEs should boldly also embrace the potential dilution of state ownership where necessary. After all, Telkom and latterly SAA (albeit too late and in desperation) are some of the examples of this shift.

It is imperative to recognise that it is only when the private sector has taken risks with its capital that it will put in what is required to ensure necessary skills and technology are in place, to be competitive and effective. This need not mean privatisation, but potentially strategic public-private partnerships (PPPs) can accelerate the reform of the mostly paralysed SOEs with such a dominant, albeit disruptive, presence in the economy.

It’s time for bold and decisive action.

The President’s inclusive leadership style, whilst commendable, is not without its shortcomings. We must distinguish between a consultative approach and a consensus-driven one. The latter condemns everyone to the pace of the slowest, something the country can ill afford now.

I have previously locked horns with the President at Nedlac when I warned him that new jobs will be more a consequence of structural economic reforms rather than a meticulous execution of the outcomes of the jobs summit. It should now be apparent that the deterioration in not only job opportunities, but also the economic growth trajectory, are a direct consequence of the lethargic pace of these reforms.

The President and his new cabinet should be encouraged to spend less of our resources on the numerous and often unproductive jobs and investment summits and more on bedding down these urgent reforms and executing them meticulously. The measure of leadership with a sense of urgency boils down to this.


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Interestingly, the policy conference call for the broadening of the Sarb mandate is not even mentioned in the January 8 statement. A sympathetic interpretation of this resolution is a call for monetary, fiscal and industrial policies that are mutually reinforcing in affirming intended policy outcomes. This may offer an opportunity to review the efficacy of the current inflation target range and open up a debate on whether this should be varied. After all, there’s nothing magical about the choice of the current range of 3-6% inflation. These considerations would have to show appreciation for the fact that excessively high levels of inflation affect the poor and vulnerable the most.

In its most unambiguous assertion, the statement correctly deems corruption an enemy of the people. Defining it as counter-revolutionary is a far cry from the recent era where this conduct was mischievously draped in the language of black economic empowerment and transformation. Demanding that those in the ranks of the ANC on the wrong side of this blight should be dealt with decisively by both the party and state law enforcement agencies is remarkable of the party’s determination to bury this blemish on its image.

Similarly with the pledge to wage war against criminality and lawlessness. A party that shows regard and respect for the constitution and the law would be trustworthy in the urgent pursuit of our developmental agenda. This is exactly what it means to reclaim our movement from the rogues that dominated its narrative over the recent past.

Our President must be liberated from the misguided notion that his government can only move when there is universal acclaim for every step it takes.

However, the challenge is to close the credibility gap that stems from the contradiction between these laudable pronouncements and what we see in some of the discredited cadres who continue to adorn the various leadership structures of party and state.

In Parliament, they are addressed as honourable, but in the courts of law where they stand trial for serious crimes of corruption, not even their names are recognised, and they are simply referred to as accused with a number.

Some have even been convicted for their criminal conduct, yet a party with convicted criminals in the leadership wants the nation to believe that it is committed to fighting crime and corruption, and expects its agency in this cause to be taken seriously. There clearly is a lack of appreciation of the fact that those who’ve shown a propensity for criminal conduct cannot be trusted with upholding and respecting the law and fighting the same vice.

The endorsement of the Report on State Capture and Corruption and the call for the urgent implementation of its recommendations must be welcomed, especially in view of the spotlight it casts, not only on the party, but also on some of its current and former leaders. Not long ago, this would have been dismissed and the Chief Justice who presided over it would have been labelled counter-revolutionary. We have clearly come a long way.

 The statement’s emphasis on urgency and the need for decisive action may signal an appreciation of the depth of the crisis we face, or it may merely be a reaction to a plethora of impatient voices. If the former, which is to be hoped, we should see an end to the multiple commissions, task teams and committees created for every challenge yearning for a solution. Rather than endless processes, we should expect programmes with clear timelines and resources to ensure their delivery.

This is our simple request for the 2023 State of the Nation Address (Sona): a focus on action and commitment, rather than promises. After all, a statement is just that until society can see a serious commitment to implementation.

The President’s inclusive leadership style, whilst commendable, is not without its shortcomings. We must distinguish between a consultative approach and a consensus-driven one. The latter condemns everyone to the pace of the slowest, something the country can ill afford now.

And while a compact with social partners on policy matters positively signals societal consensus, a democratically elected government with a clear mandate from the electorate must show itself capable of exercising its legitimate authority and power.

Our President must be liberated from the misguided notion that his government can only move when there is universal acclaim for every step it takes. With the 55th national conference of the ANC behind him, and sufficient consensus to implement the promises of the January 8 statement, it is time for the President to lead, and act.

South Africa cannot afford to wait any longer. DM

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