The CEO Initiative welcomes the purpose-driven State of the Nation Address, at a time when our country is in dire need of urgent action to resolve our urgent socio-economic challenges.

“We have long maintained that it is vital for government to now move on from talking and start to take firm and practical action to address our most pressing issues: the national fiscal position, as well as the stubborn and dangerously low economic growth rates do not allow room for any other course of action," says Jabu Mabuza, Co-Convenor of the CEO Initiative.

In particular, we are encouraged by:
- The commitment to accelerating land reform and housing provision;
- The urgent prioritisation of measures to enable the ease of doing business, which is crucial to grow investment; and
- The focus on reforming state-owned entities – especially Eskom – to enable the economy to provide essential services to the most vulnerable and businesses that are imperative for a turnaround in growth.

Sustainable SOEs fulfil a meaningful role in growing the economy and providing increased levels of employment.

“However, we reiterate that while this speech demonstrates the government's will to provide a much-needed path for higher levels of growth, the only way to maintain and grow investor confidence as a foundation for higher levels of inclusive growth is by showing tangible execution of strategies and urgent action on the country’s most pressing challenges,” says Mabuza.

While we do not discount the progress that South Africa has seen over the past two years, a great deal more work lies ahead as we aim to strengthen our fiscal framework and recapacitate our key institutions.

Business remains committed to working with government and labour to urgently address the hurdles that stand in the way of South Africa achieving sustainable and inclusive growth that benefits all who live in this country.

 

Issued by The CEO Initiative