Let us harness improved confidence to drive inclusive growth

Dear Fellow South African, 

Over the last few months, we have seen a growing confidence among investors, businesses and citizens about the prospects for our economy.

The latest Business Confidence Index published by the South African Chamber of Commerce and Industry (SACCI) points to an increase in business confidence since the elections in May. This sentiment is evident in the Johannesburg Stock Exchange’s All-Share Price Index, which increased by about 8% from the end of May to the end of July 2024.

This is welcome news, particularly in light of the most recent employment figures released by Statistics South Africa, which show that unemployment remains extremely high at 33.5%.

Business confidence is so important to our efforts to create jobs because it signals an improved business environment and encourages new investment. Greater investment in the economy enables faster growth and more job opportunities.

For several years, the country has experienced low levels of business confidence. Business confidence was negatively affected by the prolonged electricity crisis, state capture, concerns about corruption, the decline of state-owned enterprises and the manner in which law enforcement agencies had been compromised.

Investors have also been concerned about obstacles to growth, such as delays in the release of broadband spectrum, inefficiencies in ports and rail operations, and regulations that have slowed down licencing processes.

We have shown our determination to tackle corruption. Bodies like the National Prosecuting Authority (NPA), Special Investigating Unit (SIU) and the Hawks are reinvigorated and have brought several high-profile cases to trial. The permanent establishment of the NPA’s Investigating Directorate has given further impetus to the fight against corruption.

Crime is being tackled. Across the country initiatives such as Operation Shanela have upped the war on crime. We are clamping down on illicit mining operations. Criminal syndicates involved in cable theft and extortion at construction sites are being dealt with.

Through a concerted effort from all stakeholders, we have confronted the electricity crisis. We have now had more than 140 consecutive days without load shedding. There has been a huge increase in new power generation capacity.

Investors have seen the growth opportunities in the far-reaching energy reforms we are undertaking. Just last week, I signed into law the Electricity Regulation Amendment Act, which will enable the establishment of a competitive electricity market.

The progress we have made in electricity gives us confidence that we can overcome the problems on our freight rail lines and in our ports. Transnet’s recovery plan is showing progress. The private sector is providing significant technical support and resources to Transnet Freight Rail and Port Terminals.

In Gauteng, the Western Cape and KwaZulu-Natal, new state-of-the-art passenger trains are ferrying commuters along refurbished and newly reopened rail corridors. This saves users considerably in terms of commuting time and transportation costs.

We have made changes to immigration regulations that make it easier to attract skills, investment and tourists into the country. We have also significantly speeded up approval processes for water use licences and energy projects, and released broadband spectrum to unleash the potential of our telecommunications industry.

We are also making progress on infrastructure investment. According to Nedbank’s Capital Expenditure Project Listing, the value of fixed investment project announcements in the first half of this year rose to approximately R800 billion. This was up sharply from just over R190 billion in 2023. The public sector accounts for most of these projects, in areas such as energy, transportation, health facility upgrades, roads and housing.

As government, we held a meeting with business leaders last week. Business expressed optimism about the recovery and growth of our economy. They committed themselves to a new era of partnership with government. We agreed on key actions we must now take to build on the progress that has already been made. 

We cannot rebuild our country unless all South Africans work together. We will continue to work with business, labour and other social partners to drive the structural reform process that will boost inclusive economic growth and jobs.

There is indeed an air of optimism in our country. Let us harness this confidence and goodwill to increase the momentum of our shared efforts to build and strengthen our economy.

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