Delays in policy implementation ‘a major contributor to the governance crisis’

Amid the tabling of the scathing report of the National Economic Development and Labour Council (Nedlac) pointing out that desired results were not being delivered on the socioeconomic front, the social partners yesterday told the 28th annual Nedlac national summit delays in policy implementation were a major contributor to the governance crisis.

Gathering under the theme Resilience in the face of adversity: Social partners’ preparedness for crises, high-profile business, community and labour representatives criticised government’s pace of delivery, which also hampered economic growth.

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A report presented by Nedlac executive director Lisa Seftel found:

• The number of employed in South Africa remained dismally low at 40% in the second quarter of 2023, with the GDP growth having declined and the prospects of improvement low.
• While there has been a significant increase in professional women in the workforce, only half of women of working age were working.
• South Africa was no longer an attractive investment destination.
• Higher inflation continued to disproportionately impact the poor.
• Load shedding continued to dampen growth and discourage investment.
• Debt and debt service costs continued to crowd out essential government spending.
• With SA warming at twice the rate of the global average, climate change has become an ever-increasing reality.

South Africa, said Seftel, faced “a poly crisis requiring a poly-response”.

Citing various crises facing South Africa such as logistics, transport, unemployment, infrastructure failures, cholera outbreaks, a surging crime rate and the tragic deaths of 77 people in a burning building in Johannesburg, Business Unity South Africa CEO Cas Coovadia said: “These things should not be happening in a normal society. How can we continue with the same mode of engagement when things are falling apart?

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“Although Nedlac may not have all the answers, it is the perfect platform for all social partners to address these tough questions. Nedlac must ensure it is fit-for-purpose to be relevant in the current context.”

Thulani Tshefuta, convenor of the Nedlac community constituency, said: “We believe that social partners can commit to collective actions to achieve higher levels of investment and growth, increase employment, expand support for the unemployed and tackle poverty.

“Poverty is real and deepening. It must feature prominently in our national agenda and Nedlac.”

In his inaugural Nedlac speech, Deputy President Paul Mashatile said the most pressing challenge appeared to be “ideological positions among social partners in respect of the path to growth which have not shifted despite the enormous crisis the country faces. We must summon enough bravery to discuss this matter openly”.

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Labour and Employment Minister Thulas Nxesi said progress was slower than expected in labour market reform.