EDITORIAL: Why private sector is wary of government’s new plan
The private sector has lost confidence in the government’s ability to deliver large projects, so it remains reluctant to partner with the state
It is encouraging, at least, that in the midst of a global pandemic President Cyril Ramaphosa is marshalling an economic recovery plan. The centrepiece will be an infrastructure symposium that he will chair on June 23. The aim is to raise $20.5bn (about R340bn) in investment, mainly to improve SA’s rail, ports, and energy and broadband infrastructure.There is no disputing that revitalising the inefficient network industries is crucial to restarting SA’s stalled growth. A large infrastructure push, if the projects are delivered on time and on budget, could stimulate the economy.ANC economics tsar Enoch Godongwana is touting the need for the state "to guide the development process". This is disturbing as it suggests the government believes it should play a greater role in the economy, even though it has proven itself unable to run companies.But at least Godongwana adds that there’s no need for the state to "own every aspect of it, or even finance" development. If this means that more ...
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