Work underway to resolve SA’s challenges

Collaboration between businesses and government is essential to overcoming the country’s challenges and ensuring a sustainable future for South Africa, Deputy President Paul Mashatile has said.

He told Members of Parliament (MPs) that economic growth remains government’s number one priority. 

“We have always appreciated the role of the private sector in the growth and development of our economy,” he said on Thursday.  

In attracting investments, and stimulating economic growth, the Deputy President stated that the previous administration adopted reforms aimed at improving energy and logistical constraints reducing barriers to private sector investment. 

Meanwhile, he said the sixth administration worked hard to address structural rigidities in the labour market as well as to tackle crime and corruption. 

The Deputy President was responding to questions in the National Council of Provinces (NCOP) on a range of national and international issues of public importance. 

He also touched on Phase 2 of the Business and Government Partnership launched by President Cyril Ramaphosa in October this year. 
READ | Second phase of Government – Business Partnership launched

This partnership is aimed at supporting government efforts to accelerate the country’s path towards sustainable inclusive economic growth and job creation, through increased investment.

Since then, about 140 CEOs from leading South African businesses pledged to work with government in increasing gross domestic product (GDP) growth, creating jobs, and promoting investor confidence. 

“The collaboration between businesses and the government is essential in overcoming the current crisis and ensuring a sustainable future for South Africa.” 

He stated that Phase 2 will also strengthen the acceleration of the market reform needed for long-term energy security and infrastructure development for inclusive economic growth. 

Over the medium term, the Deputy President said the State was transforming its approach to public sector infrastructure by creating the conditions to attract private sector participation.

“Private sector resources were mobilised to address the energy crisis. As we are all aware we have not had an uninterrupted power supply since 26 March 2024, which is over 250 days. Together with the private sector, we are now focusing on augmenting public sector capability and to provide new channels for financing.” 

Meanwhile, he said the focus has now shifted to addressing water and infrastructure-related challenges, including freight and logistics. 

“We will continue to mobilise private sector resources to augment the capability of the public sector to fast track the provision of sustainable energy and critical infrastructure to support inclusive economic growth.”  

Intergovernmental debt

On the question of the growing intergovernmental debt, the Deputy President admitted it was a challenge that hampers government efforts to deliver services, particularly at local government level.   

He announced that the National Treasury will also consider “top slicing” budgets of departments that owe municipalities to settle the debt. 

He assured MPs that the State was implementing several measures to address debt. 

According to the Deputy President, Accounting Officers are required to settle all contractual obligations and pay all monies owed, including inter-governmental claims, within 30 days of the submission of an invoice, or on a specific period agreed upon with creditors or suppliers. 

In addition, he said the Treasury is enforcing the implementation of section 216 (1) of the Constitution by withholding the Local Government Equitable Share and other conditional grants for persistent municipal failure, including non-payment of bulk suppliers and third parties. 

The National Government Debt Forum, chaired by the Department of Public Works and Infrastructure, is aimed at resolving the current challenges of non-payment of municipal accounts by organs of State. 

The forum deals with challenges such as those relating to property ownership, incorrect tariff charges, unjustified huge interest charges as well as budget constraints. 

“We will continue to implement these and other measures to eliminate the challenge of intergovernmental debt, and to improve the delivery of services to our communities,” he added. – SAnews.gov.za
 

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