Friday, July 19, 2024


Big role for private sector service delivery in SA’s economy post-elections

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The private sector will continue to provide security and other services to South Africa that government is constitutionally obligated to provide, as it will take decades to fix the damage the ANC has done to the country.

This is according to chief economist of the Efficient Group, Dawie Roodt, who was speaking in a panel discussion on Day 1 of Securex, regarding the future of South Africa’s economy.

He was positive about the economy’s outlook – provided the envisaged government of national unity (GNU) holds.

“The key parties now likely to form the GNU, seem to comprise the African National Congress (ANC), the Democratic Alliance (DA) and the Inkatha Freedom Party (IFP). Some smaller parties on the middle ground could also be included, which would be positive,” Roodt said. “However, if the radical leftist populist parties, notably the EFF and MKP, are brought on board, South Africa faces a bleak future.”

Roodt was scathing of the ANC’s policies and record of governance since it took power in 1994, saying the governing party caused “massive damage” to the economy. He attributed this to incompetence, corruption, and outdated ideology.

“Even if a strong GNU manages to hold firm, it will take decades to fix what the ANC has done to the country.”

In his view, the private sector has a huge role to play, as it is already doing. He argued that the ANC’s failures have already led to a measure of privatisation of services, despite the government’s socialist stance to keep control of all spheres of society.

“Examples include the Post Office, energy, logistics, like ports and railways – and security,” he said. “Private firms are now delivering parcels that used to be the prime function of the Post Office, a government entity. And this event (Securex) shows how the private sector is offering security services that the government is constitutionally obligated to provide.”

On this point, Lesley-Anne Klein, management consultant associate of Marathon Consulting, added that private sector companies, including those participating at Securex, should join Business Unity South Africa (BUSA).

“BUSA plays a very important role, which could be further enhanced as more of the private sector join hands,” she stated. “By working together, we can make South Africa whole again.”

She added that ethical standards in business are critical, and that corruption should be rooted out at all levels.

Johan van Wyk, third member of the panel and marketing director of a security company, felt that on the level of communities across the country, small businesses should be supported. “We should not wait for the government, be it on national, provincial, or municipal level. Rather let’s support local businesses to strengthen our own communities.”

To this Dawie Roodt suggested that communities should always support the “best businesses” – not necessarily those within or near the community. He felt that the economy can only be strengthened by the high standards that have be watered down across the board under the ANC government.



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