New pact: Business, govt agree to fight corruption, energy crisis with same urgency as Covid-19

President Cyril Ramaphosa, his cabinet ministers and business representatives met on Tuesday.

• Business and government have entered a new pact to address economic growth and job creation.
• They will collaborate to tackle the energy crisis, logistical challenges and crime and corruption.
• This new initiative builds on a previous collaboration to respond to the Covid-19 pandemic.
• For more financial news, go to the News24 Business front page.

Government and business have entered into a new pact to tackle challenges to economic growth and job creation.

In a joint statement on Wednesday, the Presidency along with apex business organisation Business Unity South Africa (BUSA) and Business for South Africa (B4SA) – which was launched in response to the Covid-19 pandemic – shared intentions to address the energy crisis, transport and logistical challenges and crime and corruption.

The agreement was reached at a meeting between President Cyril Ramaphosa, his Cabinet ministers and CEOs on Tuesday, 6 June.

It will build on previous collaboration, namely the Covid-19 response, where business and government worked together to implement a nationwide vaccine rollout, the statement indicated.

“This initiative will make a real and marked difference in rebuilding our economy and setting it on a path of sustained, inclusive growth… We welcome this commitment from business and undertake as Government to work to ensure the success of this partnership,” said Ramaphosa.

South Africa has narrowly escaped a technical recession, according to the latest GDP figures. The economy contracted 1.1% in the fourth quarter of 2022 but picked up by 0.4% in the first quarter this year. The Reserve Bank sees the economy growing at 0.3% this year.

The International Monetary Fund’s (IMF) forecast is hardly better, with growth projected at 0.1%.

READ | SA’s troubles are mounting, IMF warns

The IMF has also raised concerns over the country’s energy crisis and logistical challenges impacting growth.

B4SA has established the three priority workstreams – energy, transport and logistics and crime and corruption. The workstreams include CEOs such as Sasol’s Fleetwood Grobler, Sibanye’s Neal Froneman, Sanlam’s Paul Hanratty, former Exxaro CEO Mxolisi Mgojo and chairperson of Anglo American’s management board Nolitha Fakude.

The energy workstream will collaborate with the National Energy Crisis Committee (Necom) to end load shedding and ensure energy security. Business will also help Necom develop a “confidence-building national communication plan” on the energy crisis.

The transport and logistics workstream aims to stabilise and improve the operations on key trade corridors and will rely on private sector resources. Business will also support the implementation of the National Rail Policy aimed at addressing capacity gaps.

“Work is under way to immediately align and integrate business efforts into government’s Freight Logistics Roadmap, and urgently enable the development of work plans, deliverables and timelines, while also integrating the private sector into the recently formed National Logistics Crisis Committee,” the statement read.

The crime and corruption workstream involves government strengthening the Investigating Directorate (ID) in the NPA among other interventions.

“Business will provide support, on a carefully governed arms-length basis, to combat crime and corruption, in particular, expert resources to further capacitate the NPA and the ID,” the statement read.

“Government and businesses have successfully demonstrated the benefits of partnership for the common good of South Africans through the Covid-19 pandemic, the vaccination programme, the recent formation of the Resource Mobilisation Fund, and many other examples,” said Martin Kingston, chair of the B4SA steering committee.

Kingston said the public would be informed on a regular basis about the progress being made.

Cas Coovadia, BUSA CEO, said the partnership between business and government is “critically important.”

“South African business leaders are committing to contributing considerable skills and resources and, as a matter of urgency, work through all relevant partnership structures to address our country’s priorities.

“Ultimately, success will lead to a significant impact on GDP growth and job creation and will re-instil confidence amongst all stakeholders,” he added.