Latest news with #GovernmentBusinessPartnership
IOL News
13-06-2025
- Business
- IOL News
Cabinet vows to tackle manufacturing and logistics woes amid dwindling economic growth
Minister in the Presidency Khumbudzo Ntshavheni addressing the post-Cabinet media held at Imbizo Media Centre in Cape Town. Image: GCIS Minister in the Presidency Khumbudzo Ntshavheni addressing the post-Cabinet media held at Imbizo Media Centre in Cape Town. Image: GCIS The gross domestic product (GDP) figures released by Statistics South Africa also indicated that the economy grew by 0.1% in the first quarter of 2025 following a downwardly revised increase of 0.4% in the fourth quarter of 2024. During a post-Cabinet media briefing on Thursday, Minister in the Presidency Khumbudzo Ntshavheni, said the government was now working to fine-tune the country's industrial policy. 'Cabinet remains concerned about the decline in the manufacturing industry, more so when the government has prioritised boosting local manufacturing and thus awaits the finalisation of the revised Industrial Policy,' Ntshavheni said. 'The government understands the impact of the challenges within freight and logistics that continues to impact the growth of the mining industry, and we are maintaining a razor-sharp focus on the work of Operation Vulindlela Phase 2 and the Government Business Partnership in urgently resolving the logistics challenges of the country.' Industrial policy during the Sixth Administration was characterised by innovation within the confines of an increasingly complex context, characterised by global instability and system-level shocks and trends. South Africa's industrial policy framework, primarily articulated in the National Industrial Policy Framework (NIPF) and its subsequent iterations, aims to drive industrialization and create a more robust and diversified economy. The NIPF focuses on strengthening the manufacturing sector and supporting the development of non-traditional tradable goods and services. Key components include investment facilitation, trade promotion, technology development, and support for small businesses, as well as competition and labor market policies. However, the economy is facing domestic and global headwinds, particularly from the looming US import tariffs that would cripple the South African manufacturing industry. On April 2, US President Donald Trump introduced a 10% base tariff on nearly all imports into the US, with additional reciprocal tariffs for specific countries. However, these reciprocal tariffs were suspended for 90 days to allow room for negotiations. Trade, industry and competition minister Parks Tau has acknowledged the current uncertainty around what decision the US will make on July 9, adding that South Africa was exposed to both direct and indirect trade and growth risks. Everest Wealth CEO, Thys van Zy, on Thursday said the government must end the wait-and-see approach on the economy. Van Zyl said the looming July 9 deadline for the possible implementation of 30% reciprocal tariffs on South African exports to the US — and the uncertainty surrounding it — should serve as yet another wake-up call for the government on the importance of bold decision-making. He said should the 30% tariffs be implemented, they are likely to significantly impact export-dependent industries – especially automotive manufacturing, agricultural products like citrus and wine, and the steel and mining sectors. 'These sectors contribute significantly to South Africa's GDP and job creation, and higher tariffs will not only undermine exports but also threaten local investment and production,' Van Zyl said. 'The government must use this negotiation window to secure a new, mutually beneficial trade agreement that protects and expands South Africa's economic interests. The focus should be on maintaining preferential access to the US market and avoiding higher tariffs that could harm our exports.' BUSINESS REPORT
The Citizen
12-05-2025
- Business
- The Citizen
Government-business partnership to accelerate delivery
Senior business leaders met with President Cyril Ramaphosa and ministers under the Government Business Partnership recently. The partners in the government-business partnership to accelerate delivery – the BLSA partnership have agreed to fast-track the implementation of key structural reforms and support performance improvements at Transnet and Eskom through an accelerated delivery plan and an intensified phase of its ongoing efforts to expedite delivery on priority interventions vital to economic growth and job creation. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her latest newsletter that the Government Business Partnership, established in 2023, is focused on accelerating crucial reforms and operational improvements to lift confidence levels and drive economic growth in four priority areas of energy, transport and logistics, crime and corruption and youth employment. Youth employment was added in January 2025. 'The partnership believes that this acceleration is necessary to achieve a step-change in progress in response to difficult economic headwinds. Focus will remain on improving Eskom's Energy Availability Factor (EAF) and unblocking delays in new generation capacity to ensure a continued reprieve from load shedding. 'Work is underway to resolve grid access and allocation bottlenecks that hinder new generation projects. While Transnet's performance is not at the level required, it has stabilised and there is a significant focus on growing volumes, which will increase exports and revenue collected to support economic growth and preserve and grow employment.' ALSO READ: Government must keep momentum in partnership with business Accelerated delivery needed in complex environment She emphasises that expediting reforms and performance improvement is crucial to reduce the possible negative impact of the complex global and domestic environment, which continues to present substantial challenges and uncertainty. Gross Domestic Product (GDP) growth projections for 2025 have been revised down and current forecasts remain far below the minimum of 3% economic growth required to create the level of jobs needed to make an impact on the country's high levels of unemployment, she says. According to Mavuso Ramaphosa said: 'Through the strength of this partnership, we have been able to unlock many constraints that undermine growth and job creation. While there is much to improve, the dedication and commitment from both government and business remains undiminished. The pace of our work must increase to match the scale of the challenge.' She says important progress has been made to lay the groundwork for sustained accelerated action, including the finalisation of the Transnet Network Statement, the launch of a Request for Information (RFI) to attract private investment in port and rail infrastructure and Nersa's approval of electricity wheeling regulations. 'These reforms enable broader private sector participation in energy, transport and logistics. Both the crime and corruption and the youth employment focal areas are largely tracking against their plans which have a longer-term time horizon.' ALSO READ: Housing, local gov and digital transformation at the forefront of Operation Vulindlela phase II Partnership welcomes second phase of Operation Vulindlela In line with the commitment to focused execution, the Partnership welcomed the launch of the second phase of Operation Vulindlela, which has a delivery focus that closely aligns with the Partnership's objective of more rapidly accelerating reforms and operational improvements that will drive growth and job creation, Mavuso says. She says at the meeting Adrian Gore, vice president of Business Unity South Africa (Busa) and business co-convenor of the Partnership, said: 'We are entering this accelerated execution 'sprint' with a real sense of urgency. 'Progress has been made, but it is not enough. This requires a step change in the pace of decision-making and execution. We need to redouble our collective efforts to help shift the country onto a sustained upward trajectory and deliver on our shared ambition of a virtuous cycle of growth, jobs, a more positive narrative and increased investment.'
eNCA
12-05-2025
- Business
- eNCA
Business and government partner to boost growth
JOHANNESBURG - Another partnership between business and government has been created. President Cyril Ramaphosa convened ministers and senior business leaders under the Government Business Partnership. This, to fast-track the implementation of key structural reforms and support performance improvements at Transnet and Eskom. Martin Kingston, leader of B4SA's steering committee, believes that the best way to address unemployment and inequality is to execute structural reform, notably in the networking industry.
Zawya
09-05-2025
- Business
- Zawya
Government Business Partnership sets three-month sprint to accelerate delivery
President Cyril Ramaphosa today convened ministers and senior business leaders under the Government Business Partnership. The partners agreed to fast-track the implementation of key structural reforms and support performance improvements at Transnet and Eskom through an accelerated delivery plan and an intensified phase of the Partnership's ongoing efforts to expedite delivery on priority interventions vital to economic growth and job creation. The partnership believes that this acceleration is necessary to achieve a step-change in progress in response to difficult economic headwinds. Focus will remain on improving Eskom's Energy Availability Factor (EAF) and unblocking delays in new generation capacity to ensure a continued reprieve from load shedding. Work is underway to resolve grid access and allocation bottlenecks that hinder new generation projects. Whilst Transnet's performance is not at the level required, it has stabilised and there is a significant focus on growing volumes which will increase exports and revenue collected to support economic growth and preserve and grow employment. Expediting reforms and performance improvement is crucial to reducing the possible negative impact of the complex global and domestic environment, which continues to present substantial challenges and uncertainty. GDP growth projections for 2025 have been revised down, and current forecasts remain far below the minimum 3% required to create the level of jobs needed to make an impact on the country's high levels of unemployment. The Government Business Partnership, established in 2023, is focused on accelerating crucial reforms and operational improvements to lift confidence levels and to drive economic growth in four priority areas: energy, transport and logistics, crime and corruption, and youth employment (the latter added in January 2025). President Cyril Ramaphosa said: 'Through the strength of this partnership, we have been able to unlock many constraints that undermine growth and job creation. While there is much to improve, the dedication and commitment from both government and business remains undiminished. The pace of our work must increase to match the scale of the challenge.' Important progress has been made to lay the groundwork for sustained accelerated action, including the finalisation of the Transnet Network Statement, the launch of a Request for Information (RFI) to attract private investment in port and rail infrastructure, and NERSA's approval of electricity wheeling regulations. These reforms enable broader private sector participation in energy and transportation and logistics. Both the crime and corruption and the youth employment focal areas are largely tracking against their plans which have a longer-term time horizon. In line with this commitment to focused execution, the Partnership welcomed the launch of the second phase of Operation Vulindlela, which has a delivery focus that closely aligns with the Partnership's objective of more rapidly accelerating reforms and operational improvements that will drive growth and job creation. Adrian Gore, BUSA Vice President and business co-convenor of the Partnership, said: 'We are entering this accelerated execution 'sprint' with a real sense of urgency. Progress has been made, but it's not enough. This requires a step change in the pace of decision making and execution. We need to redouble our collective efforts to help shift the country onto a sustained upward trajectory and deliver on our shared ambition of a virtuous cycle of growth, jobs, a more positive narrative and increased investment.' Distributed by APO Group on behalf of The Presidency of the Republic of South Africa.
