Editor’s comment

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The way forward post Covid-19

The raging bush fires in Australia, melting icebergs, and extreme weather don’t come close to Covid19 in terms of its immediate local or global impact. It’s an unprecedented pandemic within the context of our modern-day experience. And it will certainly change the way we interact within our global community. An upside, hopefully, is that we will share and care more.

Following the example of other countries worldwide, South Africa’s decision to go the lockdown route was a necessary and commendable one. How South Africa’s and the world’s economy will respond is yet to be determined. We’re already seeing a more unified and cooperative framework within our own political arena, and that’s excellent news. In a crisis, there’s no room for talk shops and posturing. Immediate action is required, and it’s happened on an impressive scale.

Let’s apply the same ‘war room’ approach, energy and commitment in addressing service delivery backlogs in the aftermath of the virus by mobilising the Infrastructure Fund, rolling out the municipal District Delivery Model, and motivating and empowering the private sector.

The change agents Post Covid-19, we need a complete mindset shift and a new game plan. Major economic powerhouses like Germany, the UK and USA could face the prospect of short-term unemployment levels on par with South Africa’s. Since these countries are among our major investors and trading partners, the speed with which they bounce back will influence our own rate of recovery. As part of BRICS, perhaps China will also provide South Africa with financial assistance.

With Moody’s now having joined the other leading ratings agencies in downgrading South Africa to junk status, the cost of borrowing will be even more prohibitive. Inevitably, we’ll need to look internally for our financial support and funding. We also need to make sure that tax revenues are wisely spent.

A New Deal for South Africa We need a New Deal like the one introduced by US president Franklin D Roosevelt to lift the USA out of the Great Depression during the 1930s. Within South Africa’s infrastructure space, vital vehicles for achieving this include the Department of Public Works and Infrastructure, the Department of Human Settlements, Water and Sanitation, and Sanral. Revitalisation plans also need to be in place for critical industries like agriculture, manufacturing and tourism.

Government has referred to a Sovereign Wealth Fund and suggested that prescribed asset legislation be reintroduced. Realistically, though, tapping into privately held funds will depend on very clear policy certainty and absolute assurances that there’s a return on investment. Positively managed, billions of private-sector-held funds would then be injected.

However, funding a build, own and operate project for a renewable off-grid power facility, a toll road or a wastewater treatment plant is only viable if investors get paid for services rendered. The vicious cycle of non-payment by consumers and municipalities must end.

What this viral pandemic has reinforced is that actions have consequences. Going forward, everyone needs to take responsibility for the environment and society. Let’s get through Covid-19 and build a South Africa that’s sustainable for future generations. To do this, we must invest in infrastructure, upskill, reindustrialise and strengthen our export base.

Alastair

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