‘Retain and sustain my reform momentum,’ says Ramaphosa

President Cyril Ramaphosa has urged the incoming seventh administration to not abandon his momentum of economic reform.

The president said reform continuity was important and feared a change in direction would derail the progress made, taking the country back to the starting block.

“While we have come a long way in the reform journey, there is much work to be done to reignite growth in our economy. Regardless of the form or composition of the incoming administration, it is important the momentum of reform be retained and sustained,” he said in his weekly newsletter.

The sentiment was echoed in a recent study by the Bureau for Economic Research (BER), an independent research institute, on SA’s economic trajectory after the recent general election.

Ramaphosa said the study referred to existing structural reforms, saying there was no need “to reinvent the wheel”, and that sustained implementation of the existing reforms had far greater currency than “miracles or fairy tales for a better outcome”.

“We have said it will take time for the impact of many of the reforms to be fully felt. At the same time, the process of recovery and rebuilding is well under way.”

Ramaphosa’s sixth administration focused largely on economic growth, transformation and job creation.

The president said that since 2019 his cabinet had implemented reforms to remove the constraints that had held back growth to attract higher levels of investment, and to make the economy more efficient and competitive.

“In 2020 we established Operation Vulindlela, a governmentwide initiative to accelerate the implementation of the reforms and support economic recovery.

“Because well-functioning network industries are vital to economic growth, we have undertaken far-reaching reforms in energy, logistics, the water sector and telecommunications.”

Ramaphosa said the reforms included an overhaul of the energy sector to enable efficiency, stability and greater investment in electricity generation and to introduce a more competitive electricity market.

“We have introduced private sector participation in the operation of port terminals, enabled open access to the freight rail network and completed the auction of high-demand broadband spectrum.

“While we recognise the value of public-private partnerships, we have stressed the state must continue to play a strategic role in the development and ownership of public infrastructure in the interest of the people.”

In the pursuit of attracting critical skills needed to boost the economy and grow the tourism sector, the president said his government had implemented reforms to overhaul the visa regime.

“The progressive implementation of these structural reforms has helped to improve investor confidence.

“This has enabled us, despite an extended period of load-shedding, to attract investment into the economy across a range of industries. The structural reform process has produced tangible results and laid the groundwork for sustainable growth into the future.”

While discussions were held between political parties around the formation of a government of national unity, Ramaphosa said there was broad support for the continuation of economic reforms.

“At this important moment in the life of our nation, eradicating poverty and inequality and reducing unemployment must remain our overriding collective priorities. We cannot address these challenges and improve the lives of our people without attracting more investment in our economy and accelerating growth.”

Ramaphosa emphasised the need for sound macroeconomic management.

“As the minister of finance noted in this year’s budget speech, successful efforts to improve the fiscal position, complete structural reforms and bolster the capacity of the state will in combination reduce borrowing costs, raise confidence, increase investment and employment and accelerate economic growth.”

The president said the BER study, which showed that continuing on the path of reform could increase growth, supported this approach.

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