By Lehlohonolo Lehana.
President Cyril Ramaphosa says that reforms are critical if South Africa is to achieve the scale of economic growth needed at this difficult time.
Since the start of his administration, Ramaphosa said the government has been pursuing far-reaching reforms in network industries like electricity, telecommunication, water, ports and rail.
In his weekly newsletter, Ramaphosa acknowledged the frustration and impatience citizens may be experiencing due to “the severity of the challenges” confronting the country.
But he said there’s been significant strides had been made in transforming South Africa’s economy.
The president said although it may not be apparent now, South Africa had made fundamental changes to the country’s economy to make it more competitive.
Ramaphosa cited the latest report from Operation Vulindlela, a joint project of the Presidency, the National Treasury and key departments, as outlining progress made in the implementation of these reforms, including:
Eskom:
- More than 100 electricity generation projects are now in development, representing over 10 000MW of new generation capacity and R200 billion of private sector investment following the removal of the licensing requirement for generation projects.
- The unbundling of Eskom and addressing of its R254 billion debt burden, which will allow the power utility to invest in infrastructure.
Transnet Freight Rail:
- Transnet Freight Rail is establishing an independent infrastructure manager to enable transparent and accurate pricing of slots on the freight rail network and create a level playing field between public and private rail operators.
- The establishment of a National Logistics Crisis Committee to improve ports and rail performance.
Telecommunications:
- New investment has been unlocked through the completion of the spectrum auction which is expected to expand network access and lower data costs
- The gazetting of a Rapid Deployment Policy and Policy Direction as well as a standard draft by-law for wayleave approvals will help to accelerate the rollout of telecommunications infrastructure such as fibre and towers.
Water sector:
- The proportion of water use license applications processed within 90 days has increased to 70% from 35%, which will assist to speed up investment in sectors like mining, agriculture, forestry and infrastructure.
- The Blue Drop, Green Drop and No Drop water quality monitoring system has been reinstated. This enables intervention where municipalities are failing to meet minimum norms and standards for water service delivery.
- A Water Partnerships Office has been established to support private sector involvement in areas such as water re-use, improving wastewater treatment, desalination projects and improving rural water services.
Immigration:
- The Department of Home Affairs is implementing far-reaching reforms that will make the work visa system more agile and responsive to the realities of the new world of work and attract higher numbers of tourists.
“Structural reforms are often indirect. As a 2004 paper from the International Monetary Fund rightly notes, they are hard to sell: ‘The gains from reform are never as clear to the wider public as they are to economists’. Reforms are nonetheless critical if we are to achieve the scale of economic growth that is needed by our country at this difficult time.
“We are committed to stay the course on structural reform. We need consistency and perspective – not temporary, unsustainable solutions – if we are to improve the lives of South Africans, create jobs, attract higher levels of investment and build an economy of the future, “Ramaphosa said.