Load-shedding is behind us and other key structural impediments to our economy like the logistics crisis are being addressed.
There certainly is still much work to do on reforms to support our economy, but we should start to see the fruits of the work done.
Through the hosting of the G20 this year, and the B20-associated business event, South Africa will be on show to the developed world’s business and political leaders.
This will be an opportunity to demonstrate the progress we have made and establish in the minds of the world that we are a country that is heading in the right direction.
Business has forged ahead with the B20, and appointed a secretariat that is raising the required funding.
I will be attending the World Economic Forum in Davos next week alongside other business and political leaders where we will be activating our G20 and B20 hosting with international leaders.
The business community is taking both events seriously to ensure that the country benefits from them, showcasing the progress we’ve made and the opportunities to do business and invest in South Africa.
A lot of effort this year will go into making that happen.
A clear strategy to engage world leaders in Davos is a first step, and I’m pleased that later this week business and government will be meeting to ensure alignment.
While the G20 is an opportunity we must seize, it is even more important that we ensure the domestic reform agenda continues.
The government and business partnership that entered a second phase late last year will be able to consolidate concluded reforms and continue the important work of ensuring as a country we are creating economic opportunity.
I am looking forward to the first business/government bilateral meeting that is happening this week with the president and his team.
It presents an opportunity to set the agenda for the year ahead.
The government of national unity has committed to the new phase of the partnership and we will be working hard to ensure it is productive.
Over the last few months I’ve noted several times how the GNU is proving positive for business sentiment, as reforms ranging from visas to water infrastructure show notable progress.
It was interesting to see last week that another ratings agency, Moody’s, has noted this progress in its view of the outlook for South Africa.
This progress must crowd in greater commitment to further reform, rather than allow us to take our foot off the accelerator.
Progress takes time to work its way into real economic activity.
While a lot of investment was delayed or cancelled because of load shedding, companies will only now be regaining the confidence to forge ahead with investment plans based on a new era of stable electricity supply.
But the reforms to consolidate a new electricity system must still be bedded down, including the establishment of a competitive open market for electricity that could start to reverse the constant pattern of above-inflation electricity price increases we’ve experienced for over 15 years.
We need to also accelerate reform in logistics, introducing greater competition by allowing more private sector participants to use Transnet infrastructure in competition with each other.
We have also signalled the importance of placing some focus on local government in the reform effort.
It has been clear that local government is increasingly the major choke point in service delivery and the focus point for wider systemic problems like the Eskom municipal debt crisis.
Municipal service delivery does have clear implications for business, and I’ve noted here before the companies that have been forced to shut down because they cannot rely on water supply and refuse collection.
Operation Vulindlela, the joint venture between the Presidency and National Treasury to accelerate reforms, has also signalled the importance of local government reform.
The ANC’s NEC released its January 8th statement over this past weekend, and it is pleasing that one of the six priority actions for 2025 is to fix local government, ensuring water and energy security.
This is a new front for cooperation between business and government that I hope we can make substantial progress on in 2025.
We will also continue our efforts to support reform of the criminal justice system, with an opportunity this year to escape the FATF grey list, which would be another significant positive for business sentiment.
BLSA continues to support the National Prosecuting Authority with resources to enable access to skills for complex case development while Business Against Crime works to support wider criminal justice system capacity.
On the whole, I am optimistic for the year ahead. I look forward to working with all of you to make it a year that marks a new phase in South Africa’s recovery.
*This column was first published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso, is the CEO of BLSA.
