Business Leadership South Africa (BLSA) has hailed the “new energy” brought to the Government of National Unity (GNU) by the new Cabinet appointed by President Cyril Ramaphosa, adding that there has been some progress in resolving electricity and logistics logjams as public and private sector collaborations gather momentum.
South Africa has notched up 100 days without electricity load shedding while ArcelorMittal SA last week said there had been improvements in Transnet port services.
Because of rail and port logistical underperformance by Transnet, SA miners have been stockpiling ore at the mines while manufacturers and retailers had been unable to move stock from the ports on time.
BLSA CEO Busi Mavuso yesterday noted the improvements in electricity and logistical logjams holding back operations and investment in South Africa.
“The progress made in electricity, logistics and crime, among other issues, has been helped by effective partnerships with business,” Mavuso said.
Latest data for the Ctrack Transport and Freight Index last week reflected an improvement in SA’s logistics services.
The Ctrack Index “increased in May to reach an index-level of 125.6 – an increase of 1.7% compared to April’s level, and 2.5%” above 2023-levels.
“This marks the third consecutive monthly increase in the index and an early signal that the transport sector’s contribution to overall GDP could again move into positive territory in Q2,” Ctrack said.
“For all ports in South Africa, the number of containers that landed increased by 14.5% m/m in May (vs -17.9% in April), and the number of containers shipped rocketed by 45.5% m/m following the drop of 32.5% during April.”
Mavuso said the new ministers in Ramaphosa’ Cabinet were embracing their new roles with zeal and speedy action from those heading the departments of trade, industry and competition, home affairs, public works, basic education and others.
“Since its announcement a week ago, the Cabinet has already brought new energy to government. I’ve seen enthusiasm and an immediate focus on the right issues that are key to making a difference for the country from visa reform to fixing basic literacy and numeracy,” said Mavuso.
She added that this was “good for business confidence, which is one of the key ingredients needed to get the economy growing again”.
“Party politics must not be allowed to interfere with the focus on delivery as a coherent and effective Cabinet,” Mavuso said.
“Business can do much to support this positive energy. We are committed to being proactive partners, bringing skills and experience to the table to help unlock challenges and ensure we achieve progress,” she said.
In his weekly newsletter yesterday, Ramaphosa said real progress had been seen in the implementation of the Energy Action Plan initiated in July, 2022. The sustained run in power supply by Eskom was a result of “the cooperation between government, business and other social partners”.
“The improvement in the reliability of power supply has been a relief for households, who have been able to go about their daily lives without the inconvenience of load shedding. It has also been a great relief for businesses,” the president said.
BUSINESS REPORT