Editor’s comment

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Work the problems and find solutions

Despite our best hopes, the war against the novel coronavirus continues into 2021, deepening the economic crisis, both locally and internationally; however, there is light at the end of the tunnel. At home, a sustained inflow of local and international funds into JSE stocks underscores this, even though leading ratings agencies continue to downgrade South Africa.

The third Investment South Africa Conference, held in November 2020, was a further indication of bullish sentiment, yielding an investment commitment of R109.6 billion. Added to the investments raised for the first and second conference, this brings the total pipeline to around R773.6 billion. This clearly indicates the faith and willingness of the private sector to help rebuild South Africa.

South Africa’s roads industry will also welcome the recent news that the New Development Bank (NDB) has approved a project loan of up to US$1 billion for the South Africa National Nontoll Roads Management Programme, aimed at improving local transport infrastructure. The NDB is a dedicated financial institution serving the BRICS member states, namely Brazil, Russia, India, China and South Africa.

Bringing everyone on board

In any country, the enabling framework rests with government, in partnership with business and civil society. Given South Africa’s high unemployment, that means collective buy-in is vital in ensuring that capital projects are well planned and executed.

It’s frustrating that the implementation of ‘shovel-ready’ infrastructure projects remains elusive; however, I’m confident that 2021 will see tangible progress, particularly in key areas like ICT, housing, roads, water, sanitation and renewable energy – if the public and private sector can agree on the common goals. Effective two-way communication is essential, which has been a key motivating factor for the launch of Construction Alliance South Africa (CASA) in January 2021. CASA is represented by 29 of the sector’s professional, contractor, supplier and other bodies.

John Matthews, chairperson, CASA, said the need for unity in the sector cannot be overemphasised.

Adding to this viewpoint, Gregory Mofokeng from the Black Business Council in the Built Environment and CASA deputy chairperson, said it was important for the industry to forge a united front to demonstrate a serious commitment to collectively respond to industry issues.

Public debt and municipal performance

As we rebuild, though, it’s vital that fiscal discipline be maintained. In this respect, reining in public sector debt in non-essential areas is a key priority. Another is the urgent need to address the poor state of many of our municipalities. Top performing municipalities are socio-economic enablers. That’s why it’s especially important that the 2021 Municipal Elections go ahead as planned. A successful outcome will serve as a catalyst for positive local government realignment and structuring. It will also help to ensure that the right people are in place to deliver services.

Across the board, however, the most important priority for 2021 is the local and international vaccine roll-out. Widespread vaccination is vital to South African and global recovery.

Alastair

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