Author: Busi Mavuso

We are facing a new blow to energy availability in our economy, with a cliff in natural gas supply just over two years away. Many industries rely on gas as an energy source, from glass making to beverages. The current main source of supply, two gas fields in Mozambique operated by Sasol, will not supply South African clients from mid-2026 since Sasol will fully utilise the remaining gas itself. As with electricity, there have been warnings for some time that this was coming. But through a combination of policy inaction and an inability to commit to the large-scale investment needed…

It is depressing reading of retrenchments taking place in the resources sector as commodity prices slide, but also because mining companies are unable to get output to their markets. Stockpiles have been building up because of problems with the rail and port services that Transnet provides, but they can’t grow any more. The only option is to reduce production, which means there is excess workforce. The logistics crisis is a very serious challenge for the economy, and that is why business and government have pulled together with unprecedented speed to work on solutions. Through Business for South Africa, we have…

The mining sector is facing unprecedented challenges. The rapid deterioration of Transnet’s ability to move output across the country and through the ports has meant a considerable decline in earnings. Richards Bay coal exports last year were at a 30-year low thanks to falling rail volumes, with Transnet delivering 48-million tonnes against a contracted volume of 60-million. Volumes of iron ore have also been falling dramatically with Transnet exporting 51-million tonnes against a target of 60-million, also a historic low. National Treasury estimates the economic cost of rail inefficiency last year was about 5.5% of GDP. This has hit the…

The World Economic Forum last week focused attention on the risks facing the global economy. Extreme weather events driven by climate change and risks related to artificial intelligence all featured strongly. More immediately, the wars between Ukraine and Russia, and Israel and Hamas were top of mind, as well as the wave of elections this year as more than half the world’s population go to the polls. The global lodestar is a lack of certainty. I always find the event, which several BLSA board members attended, a reality check on how the issues that preoccupy us South Africans are overshadowed…

As we conclude 2023, I am struck by both the progress and the setbacks that we have faced in our efforts as organised business to help put South Africa on track to deliver the economic growth we desperately need. A highlight has been the new partnership established between organised business, represented by Business for South Africa, and the government, represented by the Presidency. This has established three workstreams to deal with the energy crisis, logistics crisis, and crime and corruption. Certain initiatives within those streams are now making good progress. I think the clearest win is that the electricity crisis…

The National Health Insurance charade continues despite its absurdity. I can assure you that it will end up in no improvements to healthcare quality in South Africa, in fact, the risk is precisely the opposite. As I have written in a previous letter, if government is serious about delivering an improvement in healthcare, there are far better ways to do it, involving partnerships with the private sector that have been demonstrated to work. Instead, we continue with this make-believe in which the apparent upsides of the NHI – access to quality health care for all – can be talked about without…

Any reduction in load-shedding is welcome but we must not let it lull us into complacency. Our electricity system remains unable to deliver for our economy. As we go deeper into winter the pressure on it will increase and load-shedding is very likely to reach record levels. But I am pleased with the urgency and focus that both government and business are putting into dealing with the electricity crisis. We have an effective working relationship already in place based on the Energy Action Plan, which is being spearheaded by the National Energy Crisis Committee (Necom), with which business is very…

Last week an important new vehicle for business cooperation with the government began its journey, writes BLSA CEO Busi Mavuso. At a meeting at the Union Buildings, organised business, together with several CEOs of major South African businesses, met with the president and several of his ministers to discuss an urgent plan to address the most pressing priorities we face as a country. We focused on three areas: energy, logistics, and crime. Each workstream now has had two CEOs appointed to drive the business contribution to the partnership. These are CEOs with a great deal of experience and insight into the effects…