Sona 2021: So many promises in the past…less talk, more action

It won’t be business as usual when President Cyril Ramaphosa delivers his crisis time State of the Nation Address (Sona) this evening.

Even the ANC alliance partners want action and a break from the tradition of pronouncements without visible delivery.

Many want to hear how the president plans to proceed with the coronavirus fight, as well as his efforts to resuscitate the ailing economy and stem the tide of job losses.

They spoke about having heard so many promises, but seen little action in the last three years.

The Congress of South African Trade Unions (Cosatu) said: “We do not need new economic plans, but we need details and definitive timeframes that will speak to the implementation of the economic reconstruction and recovery plan
(ERRP).

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“The thrust of Sona needs to speak to the rapid implementation of the ERRP.

“The economy is in deep trouble and unemployment has surged past 50%. It’s time for less talk and swift action.”

Local investors voiced willingness to come to the party if the president fostered a conducive environment for investment, including extending the Section 12J tax incentive initiative.

The legislation was tailor-made to incentivise investors to fund projects that grow the economy and create jobs, but as a “sunset clause”, it is expected to expire in June.

Industry had been enabled to invest more than R5.5 billion in the economy, creating about 10,500 new jobs.

According to 12J Association of South Africa, an independently constituted body representing more than 25 12J asset management companies, tens of thousands of additional jobs are expected to be created over the next five years.

An additional R4 billion had already been raised and was pending investment into small, medium and micro enterprises.

READ MORE: Keep sin taxes unchanged and save SA’s jobs, says Cosatu ahead of Sona 2021

Mdluli Safari Lodge in Mpumalanga, an initiative inspired by the 12J tax incentive initiative was cited by investment advisory firm Impact Capital Africa as a shining example, with an excellent performance rating.

The lodge’s performance met the government’s policy objectives of economic growth, job creation and transformation as it created jobs mainly for poor rural communities.

“We call on the president to use the opportunity of his Sona to announce the extension of Section 12J of the Income Tax Act, that is due to expire on 30 June.

“In extending the tax incentive, he will signal that South Africa is once again open for business and that he is serious about growth, jobs and transformation,” the association said.

Ramaphosa is under pressure to stop corruption in the supply of personal protective equipment (PPE).

In light of the this week’s Special Investigating Unit’s (SIU) damning report, he has been called upon to show backbone by jailing the culprits.

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But he has an elephant in the room: he must act against his own aide, Khusela Diko, whose husband benefitted from an unlawful PPE tender in Gauteng’s health department.

Even those who gave Ramaphosa the benefit of the doubt for dragging his feet on taking action against corruption, have joined calls for politically connected suspects be jailed.

The president is faced with another battle to end the Covid-19 threat.

The questionable efficacy of AstraZeneca vaccines presented a quandary for him and Health Minister Dr Zweli Mkhize.

The president’s address is expected to be followed by a parliamentary debate and his response.

As usual, a week later the budget speech will follow, with Finance Minister Tito Mboweni putting funds to Ramaphosa’ announcements.

– ericn@citizen.co.za

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