#SONA2021: Business Unity South Africa reacts to Ramaphosa’s SONA

In his State of the Nation Address last night, President Cyril Ramaphosa emphasized the importance of greater investment from the private sector to drive economic growth in South Africa. However, Business Unity South Africa (Boussa) CEO Cas Coovadia expressed skepticism about the impact of the president's address on the nation's economy. Coovadia highlighted that while the government has been discussing various initiatives like localization and infrastructure development for the past three years, there has been a lack of significant progress in their implementation. Coovadia emphasized the urgent need to address systemic issues in the economy to attract both local and global investments and set the country on a path to inclusive growth. He stressed that without taking necessary structural adjustments, South Africa would continue to face economic challenges, including a lack of growth, fiscal crisis, and downgrades in credit ratings. Coovadia called for immediate collaboration between the government, businesses, and other stakeholders to jumpstart the economy. Regarding the issue of localization, Coovadia acknowledged working with the government during the COVID-19 crisis to enhance local manufacturing of personal protective equipment (PPE). While applauding the president's target of a 20 percent reduction in imports over five years, he cautioned that achieving such goals would require robust economic growth and substantial investments. Coovadia also commented on the establishment of an anti-corruption agency proposed by President Ramaphosa. While acknowledging the importance of anti-corruption structures, Coovadia emphasized the crucial need for accountability and decisive actions to hold individuals accountable for corruption. On the topics of water management and energy policy reform, Coovadia welcomed the creation of a water authority to address the impending water crisis. He highlighted the importance of collaborative efforts between business and the government to mitigate the challenges in the water sector. Coovadia also praised the legislative changes allowing businesses and individuals to generate energy, but stressed the necessity of implementing these policies efficiently to address the country's energy issues. Regarding President Ramaphosa's plan to appoint professionals to run municipalities, Coovadia expressed support for the initiative but raised concerns about political deployment impacting the effectiveness of municipal governance. Coovadia urged for transparent plans and the selection of qualified individuals to lead municipalities effectively. Overall, Coovadia's response to President Ramaphosa's SONA reflects a cautious optimism for the future of South Africa's economy. While acknowledging certain positive initiatives, he underscored the pressing need for swift and effective implementation of structural reforms to drive economic growth and create a conducive environment for investment.