NOKO MASIPA: SA needs a new deal as the ANC has failed

In the wake of the Treasury’s recent announcement of public expenditure cost containment measures, the nation stands on the brink of an economic precipice. Not only does this come in the wake of incessant load-shedding by Eskom, crippling logistical challenges from Transnet, and unbudgeted public sector wage settlements — it is the consequence of an economy that has remained stagnant for over a decade. The degradation of state-owned institutions and municipalities, which play crucial roles in service delivery and facilitating private sector investment, has significantly dented the confidence of potential investors and stakeholders.

In the 2021 national budget former finance minister Tito Mboweni earmarked R16.9bn for the department of agriculture, land reform & rural development for the 2021/22 fiscal year. The funds were a mere drop in the ocean, representing less than 1% of the vast R2.02-trillion consolidated government expenditure. A notable declaration was the intention to bring on board 10,000 extension officers to bolster the agricultural sector. Despite the admirable goal, the earmarked budget was evidently insufficient to sustain this large workforce.

However, as is often the case with the ANC government, politics trumps prudence. As a result of political pressure, the department embarked on a hiring spree, recruiting about 5,000 extension officers. The consequence of this over-ambitious plan became starkly evident when the contracts of these new recruits were abruptly terminated due to lack of funds. This misstep not only disrupted the lives of the extension officers but also the farmers, particularly black emerging farmers, who were banking on the extension officers’ knowledge and expertise.

These premature terminations and the inability to find a viable solution emphasise the systemic flaws in our policy-making processes. Misguided policy choices, including the contentious expropriation of land without compensation, have led to declining agricultural investments. Similarly, questionable policies like BEE (BEE) have affected pivotal institutions like Land Bank.

For the ANC government the path ahead is clear but arduous. A complete overhaul of existing policies is non-negotiable. The nation needs pro-growth strategies that not only promote economic advancement but also respect the rule of law. Divisive quotas such as BEE, water quotas and certain geopolitical stances need revisiting. The private sector, responsible for significant job creation, demands respect and collaboration from the government.

To truly salvage the situation, the ANC government should prioritise service delivery at the municipal level. By ensuring efficient operations at grassroots it can start to instil renewed faith among the citizenry and stimulate private investment. Instead of expending resources on duplicated responsibilities, the focus should be on facilitating the private sector to absorb the unemployed and stimulate the economy.

The DA has consistently demonstrated its commitment to a transparent and accountable SA governance system. It is imperative to recognise the party’s pivotal role in calling out the rampant corruption within the ANC government, a step that led to the establishment of the Zondo state capture commission. This commission has since become a cornerstone in our nation's fight against corruption, unearthing a huge volume of irregularities and demanding that those responsible be held accountable.

Moreover, the DA had the foresight to highlight the destructive implications of cadre deployment. This practice, which involved placing party loyalists in strategic positions regardless of their qualifications or suitability, was flagged by the DA many years ago as a potential threat to the integrity and efficiency of our institutions. The unfolding events have validated our concerns as we witness the erosion of institutional competence and credibility.

The ANC government has consistently displayed a penchant for maintaining a bloated bureaucracy, with a concerning number of millionaire managers. These high-salaried officials in several instances have not showcased the performance or efficiency to justify their paychecks.

Another area of concern has been bureaucratic red tape, which hinders business operations, stifles entrepreneurial spirit and deters foreign investment. The DA has been vocal about the necessity to streamline processes, reduce regulatory hurdles and promote a business-friendly environment.

Furthermore, the private sector, instead of being celebrated as a driver of innovation, job creation and economic growth, has often been sidelined and treated with suspicion. The DA, recognising the intrinsic value of private enterprises, has consistently pushed for policies that foster collaboration between government and the private sector. A thriving private sector is a boon for the nation, offering employment, boosting the economy and elevating our international competitiveness.

While the DA's warnings might have seemed prophetic, they were rooted in careful analysis, understanding of governance and a genuine commitment to the SA populace. The current challenges plaguing the nation are a testament to the importance of heeding informed advice and adopting forward-thinking policies.

• Masipa is DA shadow agriculture, land reform and rural development minister.