Cyril Ramaphosa upbeat about exports and jobs, despite energy crisis

On the eve of the ANC’s 55th elective conference President Cyril Ramaphosa in his weekly report on Monday addressed many of the challenges facing SA. 

Ramaphosa’s weekly letter painted a picture of hope and opportunity against the backdrop of the deteriorating electricity crisis crippling the economy, job losses, the sharply escalating cost of living and corruption.

Foremost in the litany of challenges is the Eskom crisis, which is fuelling anger within the ANC itself as it fears that it could cost the party dearly in future elections.

Ramaphosa said: “The energy crisis has caused misery for SA households and businesses. The events of the last few years continue to cast a long shadow, with the global Covid-19 pandemic severely damaging an already struggling economy and public unrest causing the loss of human life and livelihoods.”

Ramaphosa said despite the electricity challenges, the economy is recording growth, exports have increased by 4.2% and new jobs are being created. “While we haven’t recovered all the jobs lost to the pandemic about 1.5-million new jobs were created in the last year.”

“A few months ago, the Presidential Employment Stimulus, reached a 1-million participants. More than 3-million youth are registered on the innovative SAYouth.mobi platform that connects them with prospective employers. We are revitalising the National Youth Service to create work opportunities for 50,000 young people.”

Ramaphosa outlined specific events of the first half of 2022 that have compounded the challenges facing South Africans. “We experienced devastating floods in parts of KwaZulu-Natal, Eastern Cape and Northwest. The Russia-Ukraine conflict sent shock waves through global energy and food markets, leading to supply chain disruptions and rising prices that continue to be keenly felt, including in SA”.

Acknowledging that several challenges have yet to be resolved, the president offered a ray of hope: “But we have good reason to believe things are getting better. Our great country will rise above adversity, as it has done so many times in the past.

“Two years ago, when we confronted the fear and uncertainty of Covid-19, I said that if we act decisively and together, the pandemic will pass. It has indeed passed, as will the current misfortunes we are experiencing. We are more than capable of bringing about the recovery our country needs.”

Ramaphosa added that the government removed many of the regulatory hurdles to encourage greater private investment in electricity generation, far-reaching reforms are in progress to improve the capacity and competitiveness of railways and ports, some corruption cases are now in court, and the state capture commission has concluded its work and presented its final reports to the president.

On the downside, he said that crime, gender-based violence, poverty and hunger continue to cause great misery and remain challenging blights on the country.

“The road to recovery and to building a better SA will be a long one. But we will get there if we act decisively, and we act together. We will overcome our current challenges as surely as we did the pandemic that threatened to lay waste to our nation,” said Ramaphosa.

The president’s letter comes amid his Phala Phala farm scandal and a damning independent parliamentary report that has sent shock waves through the nation, and led to widespread calls for him to step down. He has referred the findings by the section 89 panel to the Constitutional Court for review. The matter also comes under discussion politically at the elective conference that begins Friday, where he will make his bid for a second term as president of the and ANC.