The 2016 State of the Nation Address takes place in particularly difficult economic circumstances, with annual GDP growth forecast for below 1% - far below the level required to inspire business confidence, address unemployment and build a prosperous future.

Over the past year, business has worked closely with government in the Presidential Business Working Groups on Inclusive Growth, the Labour Market, Education and Skills Development, Infrastructure and the Regulatory Impact on Investment. Business has also actively participated in Nedlac processes, including on the National Minimum Wage and Labour Market Stability.

Going forward, business stands ready to play its part in building a prosperous future in partnership with government and other stakeholders. To achieve this, we believe that the goal of maximising inclusive economic growth should be paramount. To do this, the following is required:
 A firm commitment to macroeconomic and fiscal stability.
 Policy certainty and improved communication on the part of government.
 A stable, certain regulatory environment.
 Reliable and affordable infrastructure.
 Functioning and competent, fit for purpose SoEs.
 Improved education and skills to drive competitiveness.
 An enabling environment for business to grow, particularly SMME’s.
 Respect for and upholding of the constitution.

With a view to the above, Business has identified the following actions, implementable over the short to medium term:
 Commitment to greater accessibility to investors of senior government officials and ministers.
 Rigorous implementation of Socio-economic Impact Assessment Studies (SEIAS) and publication of results.
 Urgent implementation of recommendations of the Presidential Review Committee on State-owned Entities.
 The reconvening of the Electricity War Room and the publication of an updated IRP, IEP and Gas Utilisation Master Plan.
 Improved advertising of the Investor Promotion and Inter-Departmental Clearing House to facilitate investment.
 Detailed engagement on private sector funding for and involvement in government’s infrastructure build.
 The demonstration of a firm commitment, in the 2016 National Budget, to sound macroeconomic management and fiscal discipline to avoid a prolonged economic downturn and possible ratings downgrade.
 The establishment of a single communications ministry, a single ministry responsible for land and agriculture as well as improved coordination between the economics ministries.
 Clear and tangible progress on the implementation of the National Development Plan (NDP).

 

Issued on behalf of BUSA