These initiatives are aimed at increasing GDP, job creation, and increasing tax revenues.
Business for South Africa (B4SA) has distilled and prioritised 12 key initiatives which are seen to have the largest effect on economic growth, job creation, and increasing the tax during this time of economic crisis.
According to B4SA’s report, these 12 initiatives form part of a coherent economic recovery strategy that represents an opportunity to increase GDP by R1 trillion, create up to 1.5 million jobs and increase tax revenues by R100 billion per annum.
B4SA’s detailed assessment sets out recommendations and proposals which business, government, labour and civil society can discuss and, potentially, implement as partners in order to reset South Africa’s economic and social development path, and to enable the nation to enjoy a better future.
The initiatives are:
- Secure and affordable electricity supply by addressing Eskom’s operating and capital structure and embracing a gas economy.
- Fast-track green economy by accelerating renewables deployment and launching green stimulus and national green funding strategy.
- Implement Transnet’s road to rail strategy by addressing debottlenecking issues to grow rail volumes, expanding Saldanha railway capacity and private concession Lephalale-Maputo line.
- Ports expansion by improving competitiveness relative to global peers and expanding capacity for agriculture and mining.
- Road infrastructure by completing BRT implementation and clarifying the role of minibus taxis within public transport.
- Full Spectrum utilisation with digital migration, permanent allocation, network sharing and the “use it or lease it” rapid deployment plan.
- E-learning and digital health platforms by ensuring more affordable connectivity and increasing access and financial inclusion.
- E-commerce acceleration with more powerful and less costly systems and migrating government and SMMEs to digital.
- Water infrastructure by completing delayed projects and coordinating with sectors.
- Maximise commercial agricultural output with cannabis industrialisation, improving access to finance and enabling infrastructure.
- Import replacement focus by targeting high-value sectors and new wild-card products and developing regional trading corridors.
- Increased financial inclusion and lower cost of capital by enabling acceleration of digital financial services ecosystem, establishing new challenger banks and funds targeting SMMEs, agriculture and green economy.
According to the report, a recurring conclusion across most sectors is that infrastructure is a key enabler which must be addressed with urgency if businesses are to deliver inclusive growth. A constructive, effective policy framework is required to support and sustain growth.
B4SA, representing the vast majority of South African business, working in partnership and supported by a number of business associations, including the Association for Savings and Investments South Africa, the Black Business Council, Banking Association of South Africa, Business Unity South Africa, Business Leadership South Africa, and the Minerals Council of South Africa, has adopted a multidisciplinary approach for an accelerated economic recovery strategy.
“This harnesses South Africa’s potential in the shortest possible time by leveraging all resources – across government, business, and civil society – to address the economic and social challenges which we face,” the statement read.