16 February 2020
None of our elites can articulate a politically navigable plan to grow the economy. President Ramaphosa’s SONA speech and initial support for COSATU’s unhelpful ideas regarding Eskom and infrastructure spending show they have stopped trying.
Successful infrastructure investing must be guided by a commercially astute growth plan. If, instead, infrastructure investing is substituted for a well-conceived plan, decay will deepen. In the mid 90s it seemed reasonable that Telkom should levy a surcharge on existing residential customers to fund landline infrastructure for disadvantaged areas. Yet Telkom couldn’t accommodate SA’s political transition while ignoring its sector being globally reinvented.
Strategic international investors and becoming a listed company upgraded Telkom’s accountability, innovativeness and competitiveness. Transitioning from landlines to cellular was greatly aided by investor inputs. As creating competition for national electricity distribution requires prohibitively expensive duplications, Eskom’s investor accountability is more crucial still.
The ANC’s economic stewardship is dreadful. Their hold on power flows from policies making a majority dependent on government alongside spurring voter fears that a change in government risks vital payments ceasing. By adopting Cosatu’s thinking the ANC would double down on eluding accountability to the detriment of the economy. Cosatu’s approach would loadshed the prudential influence of investors to further postpone urgently required reforms.
The ANC’s over prioritising redistribution has foreclosed growth prospects while inciting systemic patronage and corruption. Their policies and strategies leave many millions of South Africans dependent on government largesse which creates a massive non-productive funding requirement - while regulations discourage commercial employment.