Copy of the slides as delivered by the facilitators of the 5 themes - PowerPoint PPT Presentation

Copy of the slides as delivered by the facilitators of the 5 themes to the President in the report back session. 14 January 2020

Fumani Mthembi Founder & Director | Pele Energy Group Energy Security

Energy Security Top 3 Topics • Eskom • Carbon Impact • Renewable Energy

Eskom Critical issues 1. Implementation of Eskom Roadmap 2. Technical Capacity 3. Leadership

Eskom Implementation of Eskom Roadmap Opportunities for Business and Government: • Reskilling • Reduce Political Interference • Decentralisation

Carbon Impact Critical issues 1. Presidential Commission for Climate Change 2. Definitive Plan 3. Climate Change

Carbon Impact Presidential Commission for Climate Change Opportunities for Business and Government: • Deregulation and collaboration • Incentivising reduced carbon • Investment Strategy

Renewable Energy Critical issues 1. Expedite licensing and smart tape for private sector 2. Implementation of IRP 3. Review IRP on regular basis

Renewable Energy Expedite licensing and smart tape Opportunities for Business and Government • Deregulate private sector participation • Embedded generation regulation • Unlock hydrogen economy

Dr Abba Omar SGM: Strategy & Communications | The Banking Association of South Africa Enabling a Capable State

Desired Outcomes Good governance, ethical leadership, integrity, crime free, independent, • apolitical, strong fiscus, checks and balances Decisiveness, vision, accountability, transparency, delegation of power • Execution, functioning, capacity, resource optimization, dexterity, effective, • adaptability, agility, enabling framework for basic services Competence, skills, meritocracy, training and development, mix of young and old and • transfer of skills Policy clarity and certainty, cohesion, appropriate, reduce red tape, aligned to the • Constitution Professional, service culture, trust, caring, improve culture • Fit for purpose • Inclusivity, sustainability, growth, collaborative, measurable progress, clarified • outcomes, clarity of roles Enabling a Capable State

Enabling a Capable State Topics • Private Sector Crowding in • Public Private Partnerships • SOE Reforms • Infrastructure Development • Fiscal Management (including budget 2020) Enabling a Capable State

Private Sector Crowding In Critical issues 1. The challenge of government crowding out the private sector 2. Effective partnerships and need for greater trust 3. Shift in attitudes of bureaucrats towards the private sector 4. Policy frameworks should embed opportunities for private sector involvement (e.g. around renewables programme) – water, waste management 5. Require better project preparedness -necessary before the private sector can invest 6. Perceived lack of skills e.g. technical assistance, mentorship and development Enabling a Capable State

Private Sector Crowding In Opportunities: • “Invest with heart” • Collaboration in terms of skills e.g. artisan development • Transfer of skills – reestablishment of technocracy – crowding in skills • • Private sector to play bigger role in project management Enabling a Capable State

Public Private Partnerships Critical issues 1. A need for broader collaboration 1. Part of social compact based on trust – build a common purpose and vision 2. Government needs to signal its desire to do PPP’s 3. Require national commitment and not ideological dogma around PPP’s 4. Ground rules need to be established 1. Need a balancing act between risks and rewards, need for a fair deal 2. Balancing the developmental objective of providing services vs. return on investment 3. Framework for regulating conflict and competition 5. Clear and consistent policy to apply to all SOEs/parastatals Enabling a Capable State

Public Private Partnerships • Opportunities for collaboration: Scope for better efficiencies • Creating better ecosystems (black industrialists and SMMEs) to leverage opportunities • Skills training – vocational, hard skills (c.f. Germany) e.g. electricity, water, sewage, • health, education Need for strong Competition law • Priorities: Implementation – finding quick wins / urgency • Private sector must help combat corruption • Enabling a Capable State

Public Private Partnerships Roles: Business Roles: Government • Capital investment • Clearer role of development and rules of the game – policy certainty • Skills • Identify opportunities • Execution • Transparency & simplicity • Elimination of corruption • Execution • Elimination of corruption Enabling a Capable State

SOE Reforms Critical issues 1. Policy certainty 1. Assess the critical necessity or otherwise of state owned institutions 2. Differentiate between commercial sustainability and the developmental mandate 3. Different business models and drivers 2. Important to have common purpose – what is the end game? 3. The need for delegation – should follow policy certainty 4. The imperative for independence 1. Self-funding / levels of debt (only applies to commercial sustainability mandate) Enabling a Capable State

SOE Reforms Opportunities: 1. The necessity for collaboration, training, centralized technology / non duplication of physical infrastructure (efficiencies) 2. Cost benefit analysis required 3. Is there critical necessity for strategic tool Enabling a Capable State

SOE Reforms Roles: Business Roles: Government • Independent expertise • Policy certainty • Regulation Enabling a Capable State

Infrastructure Development Critical issues 1. Lost opportunity to implement – poor planning and lack of skills 2. Funding – inability to attract investment, to manage the funds we have (misappropriation) 3. Collapsing infrastructure – lack of maintenance, degeneration at high scale, as well as destruction 4. Corruption – patrimonial state; opportunities limited to a few in government, lack of inclusivity (e.g. SMMEs) 5. Policy instability e.g. BEE Scorecard – indicates that our approach is reactive, short-term (build rather than fix) 6. Eliminate duplication and achieve better alignment NPL Enabling a Capable State

Infrastructure Development Opportunities: • Policy revision – need to be agile to drive collaboration • Community engagement is vital - development and repair – brought in earlier to consultation process • Ownership • Crowd-funding • Involvement of professional bodies • Key priority – enabling environment (clear and stable policy) Enabling a Capable State

Infrastructure Development Roles: Business Roles: Government • Come with ideas on how to take • Enabling environment infrastructure forward • Asset registry • Funding • Ownership rights • Execution • Funding • Technology Enabling a Capable State

Fiscal Management Critical issues 1. The mission of the State is to meet the needs of the public 2. Government must formulate and implement policy to meet the needs of the public 3. Current crisis requires: 1. Control and reprioritize expenditure through a growth lens 2. Need to focus on increasing revenue e.g. improve growth rate and tax collection, enforcement (e.g. tobacco trade) 3. Lower government debt e.g. PPP’s Attract FDI - c apital flight in different forms (legitimate / illegitimate) – requires confidence 4. 4. Do more to raise revenue from informal sector Enabling a Capable State

Fiscal Management Opportunities: • Where private sector can collaborate – need for better engagement by govt • Making economy more inclusive to improve the levels of revenue, lower barriers to entry for SMEs, • Improve culture of payment and enforcement Enabling a Capable State

Summary and observations • The need for a social compact • Commitment to developing South Africa’s human resources • Policy certainty and transparency • Implementation, implementation, implementation! Enabling a Capable State

Adv. Mtho Xulu President | South African Chamber of Commerce and Industry (SACCI) Critical sectors for Economic Growth

Critical Sectors for Economic Growth Top 3 Topics • Agri-Industry • Tourism • Manufacturing

Agri-Industry Critical issues 1. Market Access 2. Infrastructure 3. Innovation & Training

Agri-Industry Market Access Opportunities: § Support for SMMEs § Sound Implementation of Policy and Regulations § Access to Finance § Alternative Farming Methodologies

Agri-Industry Market Access Roles: Business Roles: Government • Regulator • Innovative Financing • Sound Implementation of Policy • Skills Training Framework • Inclusive Business Model • Government as an enabler • Government as a connector

Tourism Critical issues 1. Safety & Security 2. Marketing 3. Infrastructure and Connectivity

Tourism Safety & Security Opportunities: • Infrastructure Development • State and Community Crime Prevention Programs • Improvement of the Adoption of Technology

Khulekani Mathe Head of Transformation and Financial Inclusion | The Banking Association of South Africa Structure of the Economy

Structure of the Economy Top 3 Topics • Unlocking small business potential • Skills and training • Key drivers for jobs 2020 – 2025