Lack of policy execution stymies government bid to improve country’s economic situation – Mashatile

• Deputy President Paul Mashatile believes that lack of implementation of agreed policy positions is the government's biggest challenge in its efforts to improve the country’s economic situation.
• Mashatile was addressing the Batseta Winter Conference at the Sun City Resort in North West on Monday morning.
• He proposed joining forces with the private sector to ensure a better economic future.

The government's biggest challenge in improving South Africa's waning economic situation is failing to implement policies.

This is according to Deputy President Paul Mashatile, who gave a keynote address to the Batseta Winter Conference at the Sun City Resort in North West on Monday morning.

He said "the [country's] challenge remains execution", but added that this could be overcome by joining forces with the private sector.

"At the centre of our economic reconstruction and recovery efforts is the mobilisation of the public and private sectors around an infrastructure-led recovery. We are envisioning an aggressive expansion of social and economic infrastructure that meets the needs of the people of South Africa.

"This includes new investments in energy, mining, water and sanitation, roads and bridges, human settlements, health and education, digital infrastructure and public transport."

The government previously announced that private participation would be enlisted to tackle the challenges in public transportation, particularly in the ailing rail sector.

In February, Transnet announced that it would bring in a private partner to take over the running of its Durban-Johannesburg rail corridor for the next 20 years to help it deliver on its mandate.

Transnet ruled out complete privatisation of its assets, but has invited private players to participate in its rail and port network, which has been hampered by inefficiencies, ageing infrastructure and congestion.

Batseta is a non-profit organisation that is focused on the interests of principal officers, trustees and fund fiduciaries within the retirement industry. Its recent conference was intended to be an opportunity for attendees to learn about the latest trends, research and solutions offered by local and international industry experts.

Mashatile's utterances come after Stats SA announced last week that South Africa narrowly avoided a recession.

The country's economy delivered a surprisingly positive first quarter despite load shedding fears, with GDP expanding by 0.4% in the three months to end-March 2023.

READ | Is SA in a recession? Economists say no, but also yes

Despite the recent economic challenges, Mashatile said, over the past 29 years the ANC-led government has adopted policies that have contributed to the transformation of the economy.

"The policy interventions have resulted in the transformation of key sectors of the economy and indeed society. We are, however, concerned that the economy is not growing at a rate that results in many being absorbed by the economy."

He said the government was grateful for the opportunity to participate in the gathering, as it allowed for the exploration of a blueprint for inclusive and sustainable socioeconomic growth.

"In discussions over the past few days of the conference, I have observed with keen interest the topics and areas of focus, which include a discussion on climate change; energy and a just transition; and the smart use of investment funds. These topics demonstrate your commitment to finding lasting solutions in the economy.

"Hence we believe that, by working with you, we can build an inclusive and sustainable economy that grows and much higher levels than it is now," said Mashatile.

He cited the Economic Reconstruction and Recovery Plan that was announced by President Cyril Ramaphosa in October 2022 as the government's lodestar towards a new, inclusive economy.

READ | Recovery plan has no hope without help from private sector, Ramaphosa says

"Our goal is to make a permanent and decisive break from an economic trajectory characterised by low and declining growth; the exclusion of women, young people and people with disabilities from the mainstream economy; falling per capita incomes; low investment; as well as high and deeply entrenched levels of inequality, poverty and unemployment," said Mashatile.

A recent Stats SA announcement said South Africa's dwindling economy was due to increased load shedding.

Mashatile said the government was continuing to strengthen the security of energy supply to mitigate the impact of power cuts. The interventions include "turning around Eskom, including its unbundling; embedded electricity generation up to 100 megawatts; and the implementation of a just transition towards a low-carbon economy".