logo
When short-term jobs aren't enough: Lessons from Komati's Just Transition

When short-term jobs aren't enough: Lessons from Komati's Just Transition

IOL News4 days ago

Since March, Seriti Institute has been implementing the Social Employment Fund (SEF) in Komati, a programme under the Presidential Employment Stimulus that enables work for the common good.
Image: Supplied
Komati, Mpumalanga - The silence left by the shutdown of the local power station in 2022 is more than just a drop in electricity output. It is the quiet of a community struggling to rebuild after losing its economic heartbeat.
Since the shutdown, approximately R7 billion has been channelled into Komati through the Eskom Just Energy Transition Project, backed by the World Bank, Canadian concessional finance, and ESMAP. Yet, despite this significant investment, the town's 4600 residents have seen almost no tangible benefits in terms of sustainable employment or local economic revival.
Good Intentions, Slow Delivery
Over the past two years, dozens of consultants, researchers, and development partners have engaged with stakeholders, including Eskom, municipalities, civic groups, unions, and national agencies. Multiple committees and coordination bodies have been established, including Presidential Climate Commission task teams, district forums, and JET-specific working groups.
While many of these structures were established with good intentions and have made valuable contributions, some have, over time, contributed to slower decision-making and delayed implementation. This is often due to limited coordination rather than a lack of effort. In several cases, well-meaning interventions, whether in agriculture, training, or psychosocial support, have operated independently, highlighting an opportunity to improve alignment around key areas such as land access, water provision, and community outreach.
'Komati deserves not only investment, but true integration. The time has come for aligned, community-led action that addresses the root causes of unemployment, disconnection, and disillusionment, beyond surface-level interventions.'
The Social Employment Fund: A Different Kind of Work
Since March, Seriti Institute has been implementing the Social Employment Fund (SEF) in Komati, a programme under the Presidential Employment Stimulus that enables work for the common good.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Funded by the Industrial Development Corporation (IDC) and delivered through civil society partners, SEF offers part-time employment (16 hours per week) at the national minimum wage. Participants contribute to community-based projects, such as food gardens, public infrastructure maintenance, and learning support, while gaining valuable skills and work experience.
SEF is built on the belief that communities have value, even when the market overlooks them. It is more than a job; it is a pathway to purpose.
'SEF gives structure and dignity, but for transformation to take root, time and continuity are essential', said Juanita.
The Promise - and the Pain
When SEF opened recruitment in Komati, we received over 500 applications for just 300 placements, proof of the community's hunger for opportunity. But within a few months, many participants left. Some migrated to other cities for better opportunities, others took short-term high-paying jobs, and some absconded.
This isn't laziness. It is the result of years of reliance on stable, well-paying jobs in the mining and energy sectors. The sudden shift to part-time, developmental work is not just economic; it is emotional. It impacts identity, structure, and purpose.
Short-term contracts don't allow enough time for participants to adjust, develop new work habits, or see the long-term value of their work.
Barriers on the Ground
Our implementation team now travels weekly to Komati to manage resignations, replace personal protective equipment (PPE), and restart site operations, costs that weren't originally anticipated. Some participants exit the programme without returning PPE, adding pressure to already limited resources.
Our vision for a local agricultural hub, producing high-value crops, creating sustainable job income opportunities, and offering hands-on training, remains on hold due to the lack of accessible arable land. Most land in the area is privately owned or managed by Eskom and surrounding mining companies. For meaningful agricultural livelihoods to take root, it is essential that landowners and strategic stakeholders actively support initiatives that create long-term value for the community. Unlocking land for development is not just a logistical step; it is a signal of shared commitment to inclusive, regenerative economic growth.
Some of the currently established communal gardens rely on municipal supplies, which are often unreliable, while others are still awaiting approval to access nearby mine water sources. As a result, even the most basic needs remain out of reach.
From Circuit Breaker to Catalyst
The Social Employment Fund (SEF) has already positively impacted the lives of over 100 000 people nationwide. It has supported communities in growing gardens, nurturing small businesses, and opening new doors for young people, whether through digital tools, early childhood development, or financial literacy.
For many, SEF has been more than a programme; it's been a lifeline, disrupting the cycles of unemployment and marginalisation. It holds the promise of lasting change. But real transformation takes more than short-term effort. It needs time, trust, and co-investment.
As one participant put it, 'You can't heal, grow, or rebuild in just ten months. Real change takes time.'
Komati's Lesson: Think Long-Term
Public employment programmes must move beyond the logic of temporary relief. To be truly effective, they must walk with communities at their own pace, rooted in their realities, rather than ahead of them or imposed from above. Transformation is not only about jobs; it's about supporting transitions that are social, emotional, and economic.
SEF's strength lies in its holistic design. It provides income, yes, but also a renewed sense of purpose, structure in daily life, and a vision for what's possible. It builds confidence, fosters community cohesion, and opens pathways that were previously closed.
But this kind of impact doesn't happen overnight. If SEF is to fulfil its transformative potential. In that case, it must be given room to grow, sustained with long-term commitment, scaled to reach more communities, and strengthened through collaboration, trust, and investment in what works.
A Call to Action
Suppose we are genuinely committed to a Just Energy Transition, one that includes everyone and builds a society that works for all. In that case, we must invest in programmes like SEF with the long-term vision, patience, and support they deserve.
Komati is not just calling for jobs. It is calling for healing, for stability, and for the space to reimagine its future. Communities in transition need more than a quick fix; they need partners who will walk the journey with them.
We cannot offer a ladder of hope only to pull it away before people have found their footing. Instead, let us build bridges that last and walk them side by side with the communities we serve.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ties that bind: Inside Mashatile's inner circle behind SA's new lottery operator
Ties that bind: Inside Mashatile's inner circle behind SA's new lottery operator

Daily Maverick

time17 hours ago

  • Daily Maverick

Ties that bind: Inside Mashatile's inner circle behind SA's new lottery operator

A cache of pictures and video shows the cozy ties between Deputy President Paul Mashatile and the inner circle behind the new lottery operator, Sizekhaya Holdings. It also introduces a key new figure linking them: Sbu Shabalala, the disgraced former Adapt IT chief executive. Photographs and footage reveal the close personal relationships behind the company that clinched the multibillion-rand lotto licence and their links to Deputy President Paul Mashatile. They provide insight into the powerful people who orbit the Deputy President, with a new name surfacing: former Adapt IT CEO Sbu Shabalala. Following amaBhungane's reporting, members of Parliament put the heat on Minister of Trade and Industry, Parks Tau, asking him to account for possible conflicts of interest in the licence bidding process and award. AmaBhungane understands that Sbu Shabalala is engaged to Khumo Bogatsu, Mashatile's sister-in-law, and is also the cousin of Moses Tembe, the Durban businessman who leads Sizekhaya. Earlier this week amaBhungane revealed that Bogatsu is the twin sister of second lady Humile Mashatile and co-owns Bellamont Gaming with Tembe. Bellamont Gaming is a shareholder in Sizekhaya Holdings, which has received the nod from Trade, Industry and Competition Minister Parks Tau to take over the national lottery licence, valid for eight years and generating about R7-billion annually. Shabalala is believed to be a key person helping knit together the politically connected group, which includes Sandile Zungu, a prominent member of Sizekhaya who reportedly co-leads the consortium with Tembe. Shabalala's presence is also controversial because of his spectacular fall from grace and departure from Adapt IT in 2021 following a violent incident at his estranged wife's home. He did not respond to questions. Power video The group's proximity to power is most strikingly demonstrated in a video circulated online around March 2025 – three months before the National Lotteries Commission (NLC) announced Sizekhaya as the winning bidder. The video captures the group, minus Zungu, at what appears to be a holiday gathering at an upscale resort. The scene is relaxed and familiar: Tembe in a crisp white shirt, his wife in jeans and a white shirt, Shabalala in a black shirt and shorts, Bogatsu in a sun hat and white blouse, Mrs Mashatile sipping a bottle of water and the Deputy President dancing. Deputy President Paul Mashatile taking a break from his demanding duties to spend quality time with family and friends. — MDN NEWS (@MDNnewss) March 15, 2025 Other photos, which we'll detail, place members of the group – including Zungu, Mashatile and their spouses – in each other's company at various personal and private events. The visuals are significant, not because powerful people have friends, but because these friendships sit at the nexus of a major public tender worth billions, raising questions about proximity, access and influence. In this regard, State Capture amply demonstrated the potential sway of informal networks over formal decision-making. The visuals add to concerns about the potential for political interference in the award of the hotly contested lottery licence, despite both Tau and Mashatile emphasising this week that the Deputy President played no role whatsoever in the lottery decision. In a response to amaBhungane, Sizekhaya said that 'the questions put forward to Advocate Bogatsu, Mr Tembe and Mr Zungu are irrelevant to the award and operation of the fourth national lottery licence and, as such, Sizekhaya is unable to respond to them. 'Sizekhaya reiterates that the allegations relating to 'interested, politically connected parties' are baseless, and that our directors and shareholders are fit and proper, as per the Lotteries Act.' Tembe told amaBhungane he did not believe any answer they gave would ever satisfy the 'insatiable appetite to incriminate' Mashatile: 'We're private individuals who've got private lives like you… You're welcome to continue down that trajectory without our cooperation.' He maintained that they had submitted all necessary declarations to the NLC and that the consortium won the bid on merit. Fallout As a result of amaBhungane's reporting, members of Parliament grilled Tau about Mashatile's possible conflicts of interest during a committee meeting on Tuesday. Tau indicated he had been unaware that the Deputy President's sister-in-law had an interest in Sizekhaya and said the matter would be investigated. Mashatile also later claimed he was unaware of Bogatsu's participation in the lottery bid. Several questions put to Mashatile's office went unanswered. Then, in a shocking turn of events, President Cyril Ramaphosa announced on Wednesday that he had taken a decision to remove Deputy Minister of Trade Industry and Competition Andrew Whitfield, who is also a member of the Democratic Alliance (DA). Whitfield's firing was allegedly owing to his official overseas visit in February, which took place without Ramaphosa's permission. A furious DA gave Ramaphosa 48 hours to remove other poor performing and corruption-implicated ministers, threatening 'consequences' if he did not. In a speech on Thursday, DA leader John Steenhuisen told Parliament that 'perhaps there is something even deeper at play here… Andrew Whitfield… had opposed an attempt to make suspect appointments, he was standing in the way of the looting that will follow from the Transformation Fund – and all of this in a department mired in corruption allegations involving the tender for the National Lottery.' In a statement on Friday, Ramaphosa said Whitfield's firing was unrelated to anything else. 'There is really no basis for suggestions that the dismissal of the former deputy minister is related to any other reason than his failure to receive permission to travel and adhere to the rules and established practices expected of members of the Executive of the Republic of South Africa,' he said. Shabalala's rise and fall For Shabalala – whose engagement to Bogatsu appears to have given him direct access to Mashatile – to be included in the Deputy President's circle provides him a comeback after his dramatic fall from grace. In May 2021, the Sunday Times reported that Shabalala's estranged wife, Neo Shabalala, sought a high court interdict against Shabalala, claiming he had hired armed men to assault her then partner, Sipho Nzuza, at her Zimbali home. Nzuza was eThekwini municipal manager, but was at the time out on bail of R50,000 after being arrested in connection with the now-notorious Durban Solid Waste case, in which he is still on trial alongside former Mayor Zandile Gumede. The Sunday Times report said Nzuza had been left in a critical condition after the attack and had his spleen and part of a kidney removed. Neo claimed in her affidavit that the assault – at which Sbu Shabalala was allegedly present – was meant to intimidate her into signing a divorce settlement that she believed was for less than what she was entitled to. She claimed Shabalala was invading her privacy by planting listening devices in her home and monitoring her cellphone. 'I do not feel safe in the slightest with the First Respondent [Shabalala] being near me or entering the immovable property,' she said. Although Shabalala maintained his innocence, saying the allegations were without merit, he consented to the interdict and the fallout resulted in his fall from grace. After taking a three month leave of absence to 'attend to personal matters' he ended up resigning from Adapt IT – the feisty tech company that he had founded and taken to a listing on the Johannesburg Securities Exchange. 'We are coming home' – and bringing friends In growing closer to Mashatile through Bogatsu, Shabalala is said to have also brought his cousin, Tembe, into enhanced proximity. Tembe co-directs and co-owns Bellamont Gaming with Bogatsu, the twin sister of Mashatile's wife, Humile. The company is a minority shareholder in Sizekhaya, and it is central to questions of a conflict of interest for the Deputy President. The company's name, Sizekhaya – which translates to 'we are coming home' – seems apt for a group bound not only by business but also by longstanding personal relationships. Aside from the revealing video, the group also appeared together in a photo previously published by amaBhungane, taken at St Paul's Anglican Church in February 2024, where they gathered to honour victims of a bus crash following the ANC's manifesto launch at Moses Mabhida Stadium. While the published photo focused on Tembe, Mashatile and his wife in the front row, a closer look reveals Shabalala standing behind them to the right and a partially obscured woman who may be Bogatsu to his left, just behind the red jacket. That year, Mashatile had frequented Tembe's home in uMdloti, KwaZulu-Natal, according to people in the area, and around the time the photo was taken it is said that Mashatile's presidential protection unit stayed over at Tembe's house for around six days. Coincidentally or not, Bellamont Gaming was registered just months before that visit, in December 2023 – four months after the NLC published the request for proposal (FRP) for the licence and just two months before bids were due. In that month, Zungu was seemingly celebrating a special moment with Tembe, and a photo shared to his WhatsApp story shows the pair holding a baby girl, allegedly Zungu's. Miami and milestones 2023 was also the year that Shabalala and Bogatsu allegedly celebrated their own milestone – their alleged engagement in August in Miami. Tembe and Reggie Kukama – a well-known friend and associate of Mashatile's – as well as Kukama's son were allegedly there to witness the special occasion. Kukama and Mashatile are members of the so-called 'Alex mafia', a group of successful businessmen and politicians who hail from Alexandra, Johannesburg. More pictures from the same year show Shabalala and Bogatsu arm-in-arm with Zungu and his wife, Nozipho. Another image shows the alleged couple with a close friend at a lunch hosted for the group. Another shows Bogatsu and Shabalala alongside the ANC's Tony Yengeni in an intimate lunch setting. On 2 February 2024, the day before the lottery bids were due, Shabalala, Bogatsu, Tembe and his wife, Princess Nandoyesizwe Tembe (formerly Zulu), were photographed at the opening of the Anele Tembe Library at Durban Girls' College. It was a special occasion for Tembe as a grieving father. His daughter Anele died in 2001 after falling from a balcony in the presence of her then fiancé, rapper Kiernan AKA Forbes. Forbes died two years later after being shot in Durban. 'Not enough to buy an aeroplane' In response to amaBhungane's questions, Tembe dismissed questions about his relationships as an 'invasion of privacy and humiliating'. He said that in his various positions, he has met 'almost all leaders across the political spectrum in their home and my home'. 'It's my duty to share notes on all issues that impact business and to influence them to inculcate and live Godly values. None of them (across the political spectrum) would ever say I discussed personal interests.' Mashatile, he said, had no financial interest in Sizekhaya's bid. He added that the bid was never discussed with Mashatile and confirmed his shareholding in Sizekhaya, but claimed that it was 'insignificant' and 'much less than 10%'. He added: 'The NLC takes the biggest chunk of the top line and winnings even higher. No shareholder would make money to buy an aeroplane.' Political alignment Tau and Mashatile have also risen through the political ranks together. From December 2000, Tau served as a member of the mayoral committee (MMC) in Johannesburg for various portfolios until 2009, when he was elected to the Gauteng ANC provincial executive committee. Around this time, from 1994 until 2009, Mashatile served as MEC in various portfolios, also in Gauteng. From 2007 to 2017, Mashatile served as provincial chairperson of the ANC in Gauteng and from 2011 to 2016 – the same period – Tau served as mayor of Johannesburg. Parliamentary grilling Tau maintained in a parliamentary portfolio committee meeting this week that the process of awarding the licence to Sizekhaya Holdings was fair, but said he would go back and investigate allegations of a conflict of interest between the Deputy President and his sister-in-law. 'Fit and proper is a continuous process. There are allegations that have been raised in the media,' Tau said. 'We have looked at those allegations and we will look at them because they are specific allegations; you cannot ignore them. It would be irresponsible of us to ignore what has been raised in the public domain by investigative journalists in the media and so on.' Tau added that they would get appropriate advice on whether the Deputy President's relationship constitutes a conflict of interest, political affiliation and any other considerations. DM

How SA's youth make and (should) spend their money
How SA's youth make and (should) spend their money

The Citizen

time17 hours ago

  • The Citizen

How SA's youth make and (should) spend their money

While some consider Gen Z a lazy bunch who want everything for nothing, the truth is quite different according to a survey. South Africa's youth are grappling with deepening financial challenges, including crushing unemployment, limited asset ownership and mounting debt levels, making older people wonder how they make and spend their money. Eighty20, a consumer analytics and research company, analysed people younger than 24, who make up 44.5% of the population. With nearly 30 million people under the age of 24, South Africa's economic future hinges on whether this generation can break the cycle of financial exclusion that currently defines their prospects. The research reveals that of the 6.7 million young people between the ages of 18 and 24, only a million are credit-active. However, among these credit users, nearly half have already defaulted on their loans. With an average monthly income of R3 400 (less than half the national average of R7 000) and a youth unemployment rate of 62.4% according to Statistics SA, financial strain is widespread in this age group, Andrew Fulton, director at Eighty20, says. ALSO READ: SA youth not unemployed, rather under-employed SA's youth mainly use retail credit Among the million credit-active youth, retail credit dominates, with 85% of the respondents holding store accounts. Personal unsecured loans follow at 17%, while 9% have credit cards. In addition, young people represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. However, Fulton points out that their credit performance is worse than the national average, with R1.1 billion, or 11% of their total debt, currently overdue. This elevated delinquency rate signals particular financial stress within this age segment, Fulton says. MRF's Marketing All Product Survey (MAPS) of 20 000 South Africans shows that the youth are more concerned about privacy when it comes to credit. They prefer that others do not know they are taking a personal loan and would rather take the loan from a financial institution rather than from friends or family. South Africa faces a stark financial inclusion divide among young adults, Fulton says. 'While people under 24 represent approximately 20% of new credit market entrants over the past three months, a few hundred thousand individuals, this figure masks a deeper problem that many young South Africans never enter the formal credit market at all. ALSO READ: The dark picture of youth unemployment in South Africa Exclusion among youth creates two distinct groups Fulton says this exclusion creates two distinct groups: people who successfully access credit can join the formal financial system and participate in the economy, while many others remain locked out, classified as 'thin file' clients due to their lack of credit history. 'Without access to formal credit, these young South Africans are excluded from significant economic opportunities.' A credit score serves as the gateway not only to lending products and favourable terms, but to essential services across multiple sectors. A healthy credit profile enables access to cellphone contracts, rental agreements and can even influence employment opportunities, Fulton says. 'Expanding credit access among young adults represents both individual economic empowerment and broader formal economy development.' However, he says a further challenge lies in how people who do qualify for credit perform: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern underscores the urgent need for enhanced financial education and for those in distress to get into debt counselling early.' ALSO READ: Entrepreneurship a solution to youth unemployment – but there are challenges Youth make money with side hustles How do young people make their money to make ends meet? Enter the side hustle economy. Fulton points out that youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Harambee, an NGO focused on youth employment solutions, reports in its quarterly Breaking Barriers analysis that of the one million young people entering South Africa's labour market annually, only 40% find work in the short to medium term, while 30% find intermittent employment but remain mostly unemployed or outside education and training, 20% want to work but never find opportunities and 10% stop seeking work altogether. In addition, for those who are employed, side hustles have become essential to make ends meet. BrandMapp, a survey of South Africans in households earning over R10 000 monthly, shows a notable shift: in 2021, 55% reported having no side activities that create extra income, but this dropped to 49% in their most recent survey. The survey asks for details on these activities and the percentage of people who say they are running small businesses as a side hustle, or taking second jobs in their primary field has grown by 50%. This trend mirrors international patterns, with about 50% of millennials and 46% of Gen Z reporting side hustles. ALSO READ: Minister agrees unemployment statistics should include work in informal sector Kind of side hustles the youth choose The nature of these side hustles varies by demographic. BrandMapp data shows that 'home industry' activities are more common among black married couples, while temporary and shift work in restaurants and bars is more prevalent among white South Africans. Fulton says the intersection of limited formal employment, growing debt burdens and the rise of alternative income sources creates challenges as well as opportunities for South Africa's young people. 'In the face of considerable financial headwinds, many young people are turning to side hustles as a means of creating opportunity in a tough economy, but with the right support structures and a focus on keeping their credit history clean, this generation has the potential to drive long-term, inclusive growth.'

The privatisation agenda will not save South Africa
The privatisation agenda will not save South Africa

Mail & Guardian

timea day ago

  • Mail & Guardian

The privatisation agenda will not save South Africa

For the many who rightly feel abandoned by the government, and are sick of the state's failures, the private sector stepping in to solve problems with energy, water and logistics might appear rational and necessary. (John McCann/MG) The World Bank has approved a $1.5 billion loan to South Africa. The Does this new loan not contradict and undermine the government's stated efforts to practice fiscal responsibility and restrained government spending? For the past several years, the treasury has nourished Since 2010, the government has taken on As irrational as treasury's loan agreements with the World Bank might seem to the public, it operates within a logic that justifies the broader agenda being pursued by the government of national unity (GNU). Behind the curtain of political theatre surrounding debates on education, land reform and black economic empowerment (BEE), the GNU is united by an unwavering commitment to a series of structural reforms that will extend an exploitative, undemocratic and costly dependence on private investment for public infrastructure development and operation. For the many who rightly feel abandoned by the government, and are sick of the state's failures, the private sector stepping in to solve problems with energy, water and logistics might appear rational and necessary. The idea that private sector firms, and the capitalists who run them, are inherently more efficient, less corrupt and unburdened by political ideology is so pervasive an assumption that it barely receives any interrogation. Perhaps the most potent illusion this unexamined assumption instills is that what is best for big business is best for people. In reality, maintaining profitability, cutting operational costs, minimising risk to investors, maximising shareholder value, ensuring returns on investment, remaining competitive and being exposed to the fluctuation of markets means that private sector firms — as an unavoidable imperative of surviving in a capitalist economy — will always put their prosperity over the welfare of the public. This is evidenced by international experiences in both developed and developing countries. In the The adoption of the Rather than capacitating municipalities to deliver services on the basis of human need, national budget transfers to municipalities were reduced, non-core functions were outsourced to expensive private contractors and municipalities were compelled to pursue A central component of placing public utilities and services into the hands of private operators is fiscal consolidation, that is, austerity. Austerity then shrinks the role of the state, weakening its ability to service the public and enforces reliance on private firms, clearing space for market competition. Austerity measures in nations such as Private companies also need to reduce the cost of labour, requiring workers who are easy to hire and easy to fire, unprotected by collective bargaining and often compelled to work without the lifeline of a minimum wage. Around the world, creating The set of reforms being proposed, and gradually implemented, by the GNU are not novel inventions but belong to a tradition of economic practice that has dominated macroeconomic policymaking in South Africa and around the world since the 1980s. This economic practice has come to be known as neoliberalism. Although a term often casually tossed around, a concrete definition of neoliberalism recognises that it is both an economic The theory proposes that 'human well-being can be best advanced by liberating individual entrepreneurial freedom and skills within a framework characterised by strong property rights, free markets and free trade'. As a political project, neoliberalism aims to 're-establish the conditions for capital accumulation and to restore the power of economic elites'. To achieve the aims of neoliberalism, the role of the state is to create and preserve the institutional framework appropriate to the practice of capital accumulation. The coalition government is advancing a surrender of public infrastructure development, basic service provision and equitable economic growth to the profit-maximising interests of domestic private companies, multinational corporations and international financial institutions. As an example, the World Bank's use of the term 'modernisation' is merely a euphemism for the continued liberalisation of the energy and logistics sector, further commercialising state-owned enterprises and eventually leading to their privatisation. Liberalisation — which is the removal of government regulations, the breaking down of monopolies and facilitation of competition — precedes or coincides with commercialisation, setting the scene for private participation and market competition. Through commercialisation, public utilities and services that should have a mandate to serve the public good are turned into enterprises that prioritise revenue and profitability. Their services are brought into a competitive market consisting of private firms with a mandate to make profits. Privatisation, the process of transferring ownership and control of public assets and services to private entities to be run on a commercial basis, is often preceded by the liberalisation of public sector utilities and the commercialisation of public services. The logic behind the GNU's agenda is for the government, using its authority to create legislation and enforce policy, to forge the most hospitable conditions for capital accumulation by cultivating a business friendly environment that will attract private investment in infrastructure, increase the efficiency of key economic sectors and grow our economy, producing jobs and reducing poverty. Weaving sermons in the editorial rooms of the corporate-sponsored media and evangelising in the offices of the treasury, the priests of this trickle-down gospel portray private investment as South Africa's sole salvation. The policy plans of government are not a rhetorical wishlist, but are clearly laid out in The unbundling of Eskom and creation of a competitive electricity market to introduce private sector participation in generation, distribution and private The Continued fiscal consolidation — that is, austerity measures (budget cuts or limits on social welfare, public employment stimulation, tight monetary policy and regressive taxation to achieve a budget-surplus); Mobilising up to R1 trillion in financing from the private sector for infrastructure development through Increased reliance on The gradual imposing of labour-market flexibility, that is, deregulating the labour market to decrease the cost of labour for employers (weaken collective bargaining, lower minimum wage requirements and reduce employment benefits). What we are witnessing is the exploitation of crises — specifically the crises of unemployment, economic stagnation and state incapacity — to justify the enforcement of policies that have failed to deliver desired outcomes in both developed and developing countries across the world for the past 50 years. The most important element of the GNU's structural reform agenda is the drive for private financing of public infrastructure development through public-private partnerships. Global institutional investors — be it the World Bank or multinational investment banks — are using the burden of sovereign debt (which limits fiscal space for domestic resource mobilisation and state-driven investment), alongside the justification of meeting In the past several years this has largely occurred through Because infrastructure projects, especially for natural monopolies such as electricity or water provision, require immense capital investment and come with a series of risks (design defects, project delays, foreign exchange volatility, land acquisition, labour protections and so forth), governments have to ensure infrastructure development is This is done to make infrastructure projects investable and profitable. The state takes on risk through providing private investors credit guarantees, enforcing cost-reflective tariffs, providing subsidies or tax breaks. Through these de-risking mechanisms, risk is transferred onto the government's balance sheet, coming at the cost of public investment, which a country like South Africa needs to eradicate unemployment, poverty and inequality. In countries such as Spain, Mexico, India, Peru, Nepal, Scotland and Liberia the commercialisation or partial privatisation of public utility and services through public-private partnerships Moreover, democratic accountability and the need for transparency in the provision of public goods has been undermined when crucial infrastructure is handed over to private hands. In developing countries such as South Africa, the growing reliance on private companies to deliver public services and build public infrastructure The government has retained a commitment to neoliberalism for decades, whether through the Growth, Employment and Redistribution, the Accelerated and Shared Growth Initiatives for South Africa, the National Development Plan or the Reconstruction and Recovery Plan. We keep trying the same things while expecting different results. About 12.7 million are unemployed and half the population of the country lives in poverty. Such conditions are unsustainable and explosive. New, politically imaginative and effective policy solutions are needed. Andile Zulu is with the Alternative Information and Development Centre in Cape Town.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store