Sunday , June 26 2022

The government must step up its efforts in order to drive SA’s economic recovery, Godongwana says


  • Finance Minister Hanoch Godungwana said at an event on Sunday that there was general agreement on the need for structural reforms, although the details are controversial.
  • At the same event, Advocate Wim Tarangov said that the failure of the Legal Service Commission to exercise discipline on judges posed a threat to the rule of law.
  • Eskom CEO De Reuter, who also spoke, said that if the policy could be more tailored, South Africa would have an opportunity to drive demand for locally produced renewable energy components.

Finance Minister Hanoch Godungwana said on Sunday that the government should improve the implementation of policies and structural reforms if it hopes to deliver on the promise of economic recovery.

Godongwana spoke at a meeting of the South African Jewish Electoral Council (SAJBD) on the state of the economy.

The address comes weeks before what will be Godongwana’s joint debut in the parliamentary session, as he is due to submit the medium-term budget policy statement in early November.

Since his appointment as finance minister by President Cyril Ramaphosa in August, Godongwana – who also serves on the ANC’s economic change committee – has signaled that he will lead the finance ministry with a decidedly business-friendly approach.

Unions, especially those that align the ANC’s labor union, the Kossato trade union, have called on Godongwana to halt the policies they see at the expense of workers and South Africans, including government efforts to curb wage increases. Banknote.

It’s all about the results

Godongwana said instead of telling about the problems South Africa is facing, it is important to put the agenda of “recovery and recovery”. He said South Africa needed a common involvement in the things the country was hoping to achieve.

“If we can take a lesson from Covid-19, South Africans across society, with civil society, government and business have worked together without drafting a single document. We need to understand how to achieve that level of commitment and channel it towards our recovery,” Godongwana said.

Godongwana said there was general agreement that South Africa needed to carry out structural reforms, although the details were controversial.

As for expanding spending on Cubid-19 interventions, Godongwana said the government should sharpen the implementation of the interventions as well as monitor their results.

“Most of these things sit in Parliament and are attributed in the form of adjustments. What does not exist as adjustments is $ 200 billion, because it’s a guarantee. The results, “Godongwana said.

Regarding the unrest in July and the government’s hopes of bringing the saga to a point of closure and justice, Godongwana gave a short and sharp commitment that the country would work to get to the bottom of the crisis.

“We cannot take individual events that are not a feature of our country as a reason not to invest. There will be security force involvement in response. Watch this space,” he said.

The rule of law

Advocate Wim Tarangov (SC) said at the event that South Africa had been forced to appreciate its constitution and the rule of law and that progress had been made despite past governments’ attempts to challenge that constitution.

“The success was a result of the leadership of the judiciary – the Chief Justice and the presiding judge of the High Court in Gothenburg. There have been a series of rulings that have courageously upheld the rule of law against attacks by those who sought to undermine the constitution. And the rule of law,” Tarangov said.

Tarangov said the Judicial Service Commission (JSC) has failed to exercise discipline on judges, and that the erosion of the quality of judges continues in high and high courts like the Supreme Court of Appeals.

“It is important that we maintain a core of smart judges who are capable of what they do. Unfortunately, the Judiciary Committee has failed to be consistent in this. We have too few brilliant judges and far far fewer brilliant judges,” Tarangov said.

Tarangov said it was unclear why the Soviet Union had failed to obtain a consistent supply of talented judges.

“Keep in mind that the Legal Services Committee has learned some valuable lessons in the last year or two and there are many judges who take these lessons seriously,” he said.

Cleaner, better power

Eskom CEO Andre de Reuter, following a week-long load-stopping attack from Country 2, bluntly reported the state of the IEC at the SAJBD event.

According to him, the technically insolvent business is in a difficult situation, but because of the ashes of this distress, the catalyst for economic growth may rise.

De Reuter said that if fiscal, environmental, energy and industrial policies could be more and more conformist to justice, South Africa would have an opportunity to drive demand for locally produced renewable energy components. He said Eskom would attend the forthcoming 26th Congress (COP26) in Glasgow, Scotland with high sustainability on its priority list.

“We have a unique set of circumstances. We emit 25% more per capita than China. Because the impending climate crisis has a disproportionate negative impact on South Africa, South Africa is endowed with some of the best wind and solar surfaces in the world,” de Reuter said.

De Reuter said improving the state of renewal would free up $ 3 billion that Eskom would have spent differently on the response to emissions. According to him, South Africa needs a capacity of 4000MW to 6000MW in the network to support the needs of its economic growth.

De Reuter said he agreed to Godongwana’s comment earlier in a non-negotiable SAJBD event that Eskom would have to stabilize the network.

“We need, as soon as possible, to get more capacity from the grid from any source to respond to the shortage. Eskom will deploy a capacity of 22 GW by 2025,” de Reuter said.

“We need 60 GW of new capacity to replace it from a variety of sources and we do not rule out categories. But renewable sources will provide the fastest solution to the capacity challenge.”

According to him, Eskom will need an availability factor of 72% and the electricity service is working to achieve this. However, he said that the factory age of Eskom means that it is not guaranteed that the availability factor will be achieved at an efficient or sustainable cost.

South African Bankers Association chairman and Investec CEO Richard Wainwright said customers are hungry to invest again, but said the only way to get the most out of South Africa’s gradual exit from the epidemic would be to grow South Africa’s economy by between 4% and 5%.

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