President lauds partnership with business, but silent on NHI

President Cyril Ramaphosa lauded government’s partnership with business when he spoke at Business Unity South Africa’s annual general meeting on Wednesday.

He listed government achievements that were reached thanks to the collaboration with business but did not mention the National Health Insurance (NHI).

Last week, Business Unity South Africa (Busa) refused to sign the Presidential Health Compact because it did not agree with the unilateral changes to the document that indicated that the signatories would support the implementation of NHI and the NHI Act.

Ramaphosa said that deepening the partnership between government and business is essential to the growth of the South African economy and the progress of the country.

He also referred to the newly formed government of national unity (GNU) and said that by its very nature, a GNU brings together viewpoints and ideological and political positions that may at times be at variance with each other.

“However, as the parties to the GNU, we were able to achieve broad consensus on the most pressing issues facing our country. We are clear that our most critical task now is to build an inclusive economy that generates sustainable growth, creates jobs and eradicates poverty. We are equally clear that this effort requires collaboration with all social partners.”

He said a fine example of this kind of collaboration is the partnership between government and business launched just over a year ago. “We made significant progress in tackling the challenges we identified in energy, logistics and crime and corruption.”

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Eskom’s improved performance thanks to collaboration – Ramaphosa

South Africa has now gone for five consecutive months without load shedding, and on Monday, Eskom released encouraging data about the progress of its Generation Operational Recovery Plan and new generation capacity brought online, as well as reporting improved financial and operational performance, Ramaphosa said.

“The role of business in this work has been extremely valuable. Business deployed substantial resources, capacity and expertise to Eskom and government to support the implementation of the Energy Action Plan. With the assistance of business and other partners, we improved the performance of the Eskom fleet.

“We got more capacity onto the grid and we increased the contribution of renewable energy sources. We have driven far-reaching structural reforms to further support this effort, including lifting the restrictions on private power projects and the introduction of the Renewable Energy Tax Credit.”

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Collaboration on logistics and fight against crime and corruption

Ramaphosa said government also made gains in the other focal areas of the partnership. “We have worked together through the National Logistics Crisis Committee to deal with inefficiencies in the transport and logistics sectors.

“Business provided technical support and resources to Transnet Freight Rail and Transnet Port Terminals. We are working with Transnet to implement the critical actions contained in the Freight Logistics Roadmap.

“We have agreed that there is much more that can be done and needs to be done to urgently increase the volume of goods carried on rail lines and through our ports.”

He also pointed out that business has lent its support to the fight against crime and corruption, including working with the National Treasury to remove South Africa from the Financial Action Task Force grey list.

“Business also provided expertise to the National Prosecuting Authority and the Investigating Directorate to manage complex corruption investigations.”

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Second phase of government’s partnership with business

Ramaphosa said with far-reaching reforms gaining momentum, the second phase of government’s partnership with business requires a firm focus on employment creation. “This is where we need to strengthen the partnership. Business continues to support programmes like the Youth Employment Service and the SA Youth National Pathway Management Network.

“These initiatives connect young unemployed South Africans with opportunities for work experience, jobs and skills. But there is much more we need to do. We must accelerate the work to overhaul the visa regime to attract critical skills, investment and tourism.”

He emphasised the need to use the opportunities identified in tourism, business process outsourcing and the digital economy. “We agree on the urgency of equipping the workforce with digital skills to take advantage of the new world of work. We agree on the need to use private sector capital to fund the growth of small businesses, particularly in under-serviced areas like townships and rural areas.

“The progress that we have made shows the value of partnership. It also underlines the essential role that Busa continues to play in building our economy and society. As the Government of National Unity, we seek to deepen this partnership so that we can together build a conducive environment for investment, growth and job creation.”

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Ramaphosa: Inclusive growth an apex priority

Ramaphosa said as he outlined in his Opening of Parliament Address, the apex priority of this administration is to drive inclusive growth. “This is essential to create employment. We are therefore focused on sectors with high potential for growth and employment, such as technology, manufacturing, agriculture and renewable energy.”

He added that growing exports is a priority and that government is committed to working with business and other social partners to improve the global competitiveness of local industries. “We are working to streamline export processes, to address tariff and non-tariff barriers and provide financial and technical assistance to exporters.”

However, economic growth and developmental priorities must be sustainable. “The transition to a low-carbon economy is a necessity. It is also an opportunity to create new industries and jobs while preserving our resources for future generations. We will continue to count on the support of business for the just energy transition.

“This just transition requires a massive investment in renewable energy, green technologies and the circular economy.”

Ramaphosa reiterated his administration’s call on private sector expertise and investment in areas such as transportation, energy, housing, water and sanitation. “We are revising the framework for public-private partnerships, as these are vital for bridging gaps in public resources and delivering services efficiently. “

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Structural and regulatory reform

He also emphasised governments commitment to use structural and regulatory reform to improve the business operating environment and a stable policy environment that stimulates investment.

As government we will continue to invest in education and vocational training to equip young people with the skills needed in a rapidly changing economy. “We once again call on business to scale up its support for this effort by providing more training,learnerships, internships, work placements and on-the-job training.”

Ramaphosa said government remains committed to working with Busa to drive economic growth that improves the quality of life of all South Africans. “The success of our partnership depends on active and continuous engagement. We must accept that there will, from time to time, be areas on which we may disagree.

“We should not let this deter us from the work we need to do. Rather we should remain engaged in dialogue with a view to finding solutions that serve the interests of the country. Clear communication is crucial for building trust and ensuring that policies are informed by the realities on the ground.”