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Ramaphosa: End of the beginning

All eyes on Nedlac’s reconstruction and recovery plan.
President Cyril Ramaphosa. Image: GCIS

As expected, President Cyril Ramaphosa announced on Wednesday night that he will move the country to Alert Level 1, on September 20, which further relaxes restrictions on the movement and economic activity of South Africans.

Ramaphosa hinted that such a move was on the cards last week during a virtual press conference, after he was asked if the government was considering it, given the reduction in the rate of new Covid-19 infections.

Under Level 1, the country’s borders to varying degrees will start to reopen, restaurants can operate at increased capacity, up to 100 people may attend a funeral and from October 1, travel into and out of South Africa will be allowed.

Listen: Borders need to open as soon as possible – Airline Association of Southern Africa

As usual, Ramaphosa provided broad guidelines of what will happen under Level 1, and said he would leave it to his ministers to spell out the specifics.

Aside from the relaxing of restrictions, the move to Level 1 also coincides with the reconstruction and recovery plan, which is to be announced in the coming weeks.

Deals in the making

The plan is part of an “ambitious social compact for economic recovery” being developed at the National Economic Development and Labour Council (Nedlac), an institution that facilitates discussions between the government, trade unions, business and community organisations on labour and development issues.

Details of what’s being developed still remains under wraps, but there are already signs that the social compact is taking shape. A report states that a deal has been struck between the government and business regarding the turning around of troubled power utility, Eskom.

Read: SA agrees on pact to fix Eskom

According to Bloomberg, under this arrangement, the government will remove all regulatory obstacles that hinder companies from generating their own electricity, while businesses agreed to implement projects to add 2 500 megawatts of supply within two years.

This move regarding Eskom follows Ramaphosa and Finance Minister Tito Mboweni saying the Covid-19 crisis should not be wasted, as it offers an opportunity to reshape not only the economy, but also the structural arrangements that lock so many people out of economic opportunities.

Ramaphosa is regularly criticised for not moving fast enough when it comes to implementing structural reforms.

But as he pointed out last week, while he may be president, acting rashly would serve no one’s interest.

Ramaphosa – what he’s good at

As such, getting a wide range of participants with differing views to draw up a new social compact at Nedlac is probably the best way to address these pressing issues.

It’s often forgotten now, but these kinds of multi-stakeholder arrangements – where participants seemingly have divergent objectives – was the type of thing Ramaphosa as a trade union leader and later an ANC negotiator, excelled at.

It is not only Ramaphosa’s forte; it was also something the country discovered it had the knack for in the 1990s. Back then, for example, instead of putting Apartheid perpetrators on trial, we adopted the concept of a Truth and Reconciliation Commission, to address the wrongs of the past.  

And also, let’s not forget it was the die-hard communist Joe Slovo who came up with the idea of a government of national unity, which allowed onetime belligerents, the NP and ANC, to run the country together.

Without Slovo’s proposal, a peaceful transfer of power would have been incredibly difficult.

But then after we adopted our shiny world renowned new Constitution, and basked in ‘Madiba Magic’, we stopped truly innovating – aside from the stuff we did to win a couple of Rugby World Cups.

With the country once again in peril, the Covid Crisis has set the scene for SA to once again come up with something novel.

The Nedlac plan is yet to be made public, but hopefully, it will go some way to addressing the oversites that happened 30 years ago when SA transitioned into a democracy. Back then we largely got the democracy stuff right but didn’t really understand the importance of getting more people into the economy.

Hopefully, this time we will get it right.

Hopefully this time we will rediscover our innovating streak and come up with stuff that not only addresses the economic wrongs but also creates the base for a vibrant economically-inclusive country.

Listen: Sanlam Investments economist Arthur Kamp on what Level 1 may mean for the economy

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It would be a lot better if the frog boiler Cyril would move to a Super alert about his thieving ANC comrades.

So business can generate own power and small print 10MW allowed and will be simple.

Ha ha ha to get Nersa to agree to that will take another 2 years which would leave 6 months for business to build the 2500 MW – I will believe any of the fast action if I see it

Another day, another plan is being developed.

How about developing some implementation instead?

If the PPE shenanigans are anything to go by, then the Reconstruction and Recovery Plan simply means another ploy by the ANC to fleece the poor. Anyone remember the ineptitudes of the RDP, the Public Private Partnership Programs!!! It is simply going to be more of the same!!!!

The day government realises that business is not your enemy and creating environments where business can blossom, that will be the day millions will be moved into the middle class. That middle class have the potential to put SA on a massive economic growth trajectory.

This country has 33% children. 33% getting free stuff from the state and are unemployed. The other 20% are corrupt thieves. What happened to the other 13%?? Well 10% of those are the union members. They toi-toi all the time as they are not entitled to free stuff and are not in positions to steal stuff. 3% unknown.

Now we expect these people to fix what they broke? Like ESKOM, SAA, THE COUNTRY, ………….??

Hahaaaa. Dream on.

Before popping the sparkling wine (formerly known as champagne), please remember that in Satafrica, the Covid lockdown level is inversely proportional to the Eskom loadsh@tting level.

I am also at a lost for words at how well Saffa dealt with COVID-19.
In comparison to the First World, our president did a fantastic job managing COVID-19.

The beginning of the end more like it !

All will be fine.

President says to Sing and Dance to Jerusalema…. should be all thats needed.
Im busy doing just that while Rome burns.

I’m sure you meant the end of the end.

Ive said it before, ill say it again. This lockdown was a complete waste of time.

Only now there are talks of potentially 12mil people in SA infected already , that puts the death rate in line with a season flu, only difference its very contagious and the R3 is probably R10.

The WHO is also to blame here, they gave terrible advice.

We were already in big trouble pre COVID, its sad.

The title was wrong. Should have been “Beginning of the end”. Those who wait for government to get the economy going, will die waiting.

The only wheels of the economy that are still turning are that of the brand new Range Rovers/Mercs/BMWs of the Covid-19 thieving cabal. Oh! I also forgot the more fortunate that received new Maseratis, Porsches, Bentlys and Ferraris.

Pres CR’s endless consultation was needed pre 94 – not now – what is needed now is action and results.

Why was the economic recovery plan’s outlines not drawn up during March?

Months have now been wasted. Where is the forward thinking?

To put things in perspective of how the ANC have ruined opportunities in this country:

* South Korea is 29,000 square kilometres smaller than the Western Cape
* South Korea have 50 Million People
* South Korea’s neighbor country is North Korea
* South Korea have currently an annual GDP of 1.6 trillion US Dollar…yes, 1.6 TRILLION US DOLLARS!

Compare that to South Africa:

* South Africa is 12.2 times larger than South Korea
* South Africa have abundant resources – definitely much much more than South Korea (basically free money)
* South Africa have mostly the same population size of 55 odd million people
* South Africa’s annual GDP Pre-Covid = 368 Billion US Dollars

For those who do not understand billion to trillion:

* South Korea (which is 12.2 time smaller in size than South Africa) have an annual GDP 4.35 times higher than that of South Africa.
* South Korea’s GDP per capita are 4.92 times that of South Africa.

So, in conclusion – we (read Government) are doing something seriously wrong.

On a positive note (we should always try and do and say something positive) – we have a huge upswing potential. If we can stick and if our government can change for the better – there are no better place to be than South Africa.

Beerus Oor en uit (kkkgggg….)

Great comments by you and also well balanced

Korea has had a sophisticated population both literate and technically in art and architecture for thousands of years. Compare to SA where the majority are still semi-literate.

………….tuning around of troubled……..No amount of tuning will ever rectify Eskom. It needs a make over! Stop being an employment bureau for the ANC comrades, renting a crowd. Deploy competent people that will render unions to boast about achievements rather than protection.

Dear Mr President

Congratulations on a job well done with COVID-19. With this in mind I would like you to address the following challenges as well:
1. Eskom.
Please ensure that all Saffa’s have access to affordable and reliable
electricity. When considering this, please impress on big business (like
the mines) to become self sufficient in this regard to ensure the lifeblood of our economy continues to function well.
2. Corruption.
The Zondo Commision, Hawks and SIU are doing a great job in this
regard and I wish to congratulate you on showing courage in dealing
with this very complex matter recently. More needs to be done until
all accused are brought to trail and be punished where applicable.

Please continue to lead our great nation like you have in recent times especially concerning COVID-19 and (PPE) Corruption.

The township people are behind you every step of the way.

Sincerely
ReggW (from Bonteheuwel)

Seems being from Bonteheuwel means you get free blinkers!

The young population profile minimised the impact of Covid not the president.

Mulilo would alredy be cheaper and more reliable if they simply had the gonads to disallow the blatant thieving from within escom and in the townships.

Zondo affair would be marvellous, if only some orange suits had been issued after all this time and money invested in it.

Mr pres, talk is cheap and buys votes, meaningful action is what counts.

In South Africa countries, its always all about reconstruction. Why don’t we refrain from harming the economy in the first place, then we can incrementally build on what we’ve got?

Agreed.

But I am at a loss and cant find a single thing the ANC has successfully built. NOTHING!

Stuff they broke?? Plenty. They are specialists.

Its more like the beginning of the end.lol.
Cyril moet wakker word.

How is this Nedlac “pact” between gov, business and unions going to be concluded with a union like Numsa – probably not the only one – demanding the last trench of a salary agreement with gov which was concluded last year? The rest of Nedlac agrees there’s no money for it – and there isn’t!
So where will the “pact” come from? Castles in the sky again?

How is this Nedlac “pact” between gov, business and unions going to be concluded with a union like Numsa – probably not the only one – demanding the last trench of a salary agreement with gov which was concluded last year? The rest of Nedlac agrees there’s no money for it – and there isn’t!
So where will the “pact” come from? Castles in the sky again?

In the 1960’s the average Zambian were richer than the average South Korean.

Today the South Korean is a hundred times richer than the Zambian.

Recipe for success: Small families, intensive study and strong economic growth, brought about by merit appointments.

“Ramaphosa – what he’s good at”

Ramaphosa is good at nothing, what you talking about???

We get that the media and friends(stratcom) loves Cyril but he is no good for business or this country. 3 years into Presidency yet no legacy.

Come on man.

Good talker. Good at enriching himself, his family and his friends. Full stop.

End of comments.

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