Budget 2023: Rope in the private sector to fix crises, urges Busa

A lack of capacity to implement the urgent reforms required to address the severe crises on several fronts requires a real partnership with the private sector, says Business Unity SA (Busa).

Ahead of the budget speech to be presented by finance minister Enoch Godongwana on Wednesday afternoon, Busa CEO Cas Coovadia said: “The private sector has, over the past four years, consistently offered to work with government to bring its capacity and resources to bear in addressing some of the crises, and we have undertaken detailed work on energy, logistics and law and order, but have not been able to convince government to partner with us.”

He highlighted the challenges as:

• The load-shedding and broader energy crisis;
• The severe crisis in logistics with particular emphasis on the failures at Transnet, but also related to crumbling roads infrastructure;
• The breakdown in law and order and prevalence of organised crime;
• The impending water crisis, and;
• Low levels of investment.

“This is exacerbated by a seeming inability on the part of government to recognise the urgency of addressing these crises and a lack of capacity to implement much-needed interventions and reforms,” said Coovadia.

He said business hoped Godongwana would send out a clear message that everything must be done to enable substantially greater private sector involvement in the economy.

“The budget must allocate funds, with conditions that such funds must be utilised in a way that invites, in real partnership, the private sector to work with government to make a fundamental impact on addressing the crises and instilling confidence in the country, with resultant investment and growth.”

The critical areas in the budget he hoped the minister would address included giving clarity to plans for the sovereign to absorb some of Eskom’s debt, subsidies for rooftop solar power for both commercial and private citizens, checks and balances to encourage the utilisation of funds responsibly, a limit on borrowing and information on how the government will manage the real risk of greylisting by the Financial Action Task Force.

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