GNU: Tau describes ‘a new era of collaboration’ with big businesses

Described as “a new era of collaboration”, Trade, Industry and Competition Minister Parks Tau summed up a meeting between big business and the government of national unity (GNU) Cabinet as a moment to reflect on challenges facing South Africa.

High-profile business leaders and the multiparty Cabinet this week converged at the Union Buildings – citing crime, corruption, energy, transport and logistics, as key areas impeding economic growth and stability.

ALSO READ: Government and private sector announce R790bn in capital expenditure projects

Commitments made

Addressing a media briefing yesterday on the meeting convened by President Cyril Ramaphosa, Tau, Energy Council South Africa CEO James Mackay, head of the project management office in the Presidency Rudi Dicks, National Prosecuting Authority deputy national director advocate Anton du Plessis and Business for South Africa (B4SA) steering committee chair Martin Kingston, said leaders committed to:

• Address structural challenges, drive reforms and efficiencies – investing in skills empowerment across all workstreams of the government-business initiative;

• Achieving a three to five percent gross domestic product (GDP) growth by 2030;

• Address rapidly rising electricity costs, unsustainable municipal utilities, complex market reform, a constrained grid with delayed expansion and stalling investment in new generation;

• Implement rapid structural reforms and strict adherence to the freight logistics road map deadlines to help address national logistics challenges; and

• Offer immediate support to the country’s removal from the Financial Action Task Force greylist by demonstrating intent and ability to successfully prosecute complex crime and corruption cases, recovering assets.

ALSO READ: Unemployment increased over the past 30 years. Will GNU change that?

While Mackay was bullish about achieving a dramatic reduction in load shedding in collaboration with Eskom – over 140 days without load shedding this year and significant grid capacity recovery – he conceded that the country faced several challenges.

These rapidly rising electricity costs, unsustainable municipal utilities, complex market reform, a constrained grid with delayed expansion and stalling investment in new generation.

Mackay said significant investment would be required for energy sector reform over the next five to 10 years – paving the way to address challenges.

“When it comes to energy, our approach through the energy action plan has been based on three pillars – build, fix and reform.

“There has been a lot to celebrate in the fixing, when we look at load shedding – now moving to address system costs, efficiency, ensuring sustainable investment and structural reform.

“But we have to focus on the performance recovery work – recognising the good work done by other role players and government,” said Mackay.

Business, Eskom and the Presidency have agreed that the priorities of the National Energy Crisis Committee should include a focus on transmission, market reform, municipal utilities and new energy generation.

B4SA says collaboration model has merits

B4SA’s Kingston said the government-business collaboration model “has shown its merit and is fit for purpose, to drive accelerated growth and jobs in the seventh administration”.

“While significant progress has not been as swift or extensive as we would have liked, it has gifted us with a blueprint for success in a new era with the GNU.

“We are very optimistic about the next phase of the partnership,” said Kingston.

Adrian Gore, co-convenor of the business delegation, said: “We welcome President Ramaphosa’s commitment to a new era of partnership at a critical inflection point for the country.

“In the first phase of our partnership, over 130 CEOs pledged support and business invested more than R260 million – mobilising over 350 experts across the three focal areas.

“This has contributed to the progress made with the reduction in load shedding.”

ALSO READ: An infighting GNU appears to be working