LETTER: SA’s economic transformation is nowhere near radical enough
Johann Els forgets that two members of the Tripartite Alliance are fundamentally opposed to the reforms we need
29 August 2022 - 16:15
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A hybrid work model means although people have returned to their offices, there is far less traffic in Sandton. Picture: SEBABATSO MOSAMO
Johann Els is optimistic in saying SA is facing radical economic transformation for the better as the private sector is being granted increased involvement in previously state dominated sector (“Radical economic transformation is coming — the good sort,” August 28).
While increased private-sector involvement is a positive, it is by no means radical enough to solve SA’s problems. The crisis of unemployment, corruption, crime and our collapsing electricity industry require a far more substantive and truly radical shift to avert disaster.
While President Cyril Ramaphosa’s recent reforms in the electricity sector are welcome, they do not solve the fundamental issue — that Eskom is still a monopoly state company and regulator. It needs to be debundled, privatised and the market deregulated to allow dozens, if not hundreds, of competitors to produce mass amounts of power.
There are also no determined reforms to solve unemployment. Labour regulations must be eviscerated to make it easier for employers to take the risk of employing an individual. Without the ability to hire and fire at will companies will not risk bringing in new blood.
While Els is confident about the government moving towards a more private-sector-friendly era, he is forgetting that two members of the Tripartite Alliance are fundamentally opposed to the reforms we need — radical or even moderate.
Cosatu and the SACP are ideological fanatics and will fight tooth and nail to prevent any sort of reforms for the better. Cosatu blocked Eskom’s privatisation in the 1990s and will stop any sort of positive reforms now. Not to mention how they stand as one of the largest hurdles before any effort to solve unemployment.
Until there is a fundamental shift in the ideology of government and the unions we will not see the sufficiently radical reforms that are needed to save SA’s economy. That said, I concede that private-sector involvement is a start.
Nicholas Woode-Smith Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: SA’s economic transformation is nowhere near radical enough
Johann Els forgets that two members of the Tripartite Alliance are fundamentally opposed to the reforms we need
Johann Els is optimistic in saying SA is facing radical economic transformation for the better as the private sector is being granted increased involvement in previously state dominated sector (“Radical economic transformation is coming — the good sort,” August 28).
While increased private-sector involvement is a positive, it is by no means radical enough to solve SA’s problems. The crisis of unemployment, corruption, crime and our collapsing electricity industry require a far more substantive and truly radical shift to avert disaster.
While President Cyril Ramaphosa’s recent reforms in the electricity sector are welcome, they do not solve the fundamental issue — that Eskom is still a monopoly state company and regulator. It needs to be debundled, privatised and the market deregulated to allow dozens, if not hundreds, of competitors to produce mass amounts of power.
There are also no determined reforms to solve unemployment. Labour regulations must be eviscerated to make it easier for employers to take the risk of employing an individual. Without the ability to hire and fire at will companies will not risk bringing in new blood.
While Els is confident about the government moving towards a more private-sector-friendly era, he is forgetting that two members of the Tripartite Alliance are fundamentally opposed to the reforms we need — radical or even moderate.
Cosatu and the SACP are ideological fanatics and will fight tooth and nail to prevent any sort of reforms for the better. Cosatu blocked Eskom’s privatisation in the 1990s and will stop any sort of positive reforms now. Not to mention how they stand as one of the largest hurdles before any effort to solve unemployment.
Until there is a fundamental shift in the ideology of government and the unions we will not see the sufficiently radical reforms that are needed to save SA’s economy. That said, I concede that private-sector involvement is a start.
Nicholas Woode-Smith
Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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