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BLSA building on engagements with Electricity Minister

13th March 2023

By: Tasneem Bulbulia

Deputy Editor Online

     

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For President Cyril Ramaphosa’s newly appointed Cabinet to deliver the changes required in South Africa, it needs to be proactive, business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso asserts in her weekly newsletter.

She posited that this is already happening with new Electricity Minister Kgosientsho Ramakgopa.

“Last week I had a very positive meeting with Kgosientsho. His office was quick to reach out and his message was that business has to play a critical part in resolving the electricity crisis. He understands that all stakeholders will have to work together.

“In his previous role as a champion of infrastructure investment in the Presidency, organised business had many positive engagements with the Minister. The hallmark of his approach has been to find solutions by working with partners,” Mavuso stated.

She averred that the electricity crisis had been exacerbated by the lack of alignment between key stakeholders.

“Despite clear policies and plans, the reforms and decisions needed to implement them have regularly been bogged down in turf wars and ideological standoffs. We have scored many own goals as a result, from needless delays in procuring new electrical plants to delays in the unbundling of Eskom.

“A champion who can align all of the parties and drive reforms through to completion would be extremely welcome. The Minister is clear that we do not need new plans – we just need to implement the existing ones,” she outlined.

Mavuso emphasised that organised business was a willing partner, adding that this was demonstrated with the launch of the Resource Mobilisation Fund (RMF) last week.

BLSA is indicated to be a considerable contributor to the R100-million fund, which will pay for technical capacity to support Ramaphosa’s energy plan drawn up by the National Energy Crisis Committee (Necom).

Necom’s plan is already being implemented, having driven the issuance of a battery procurement round and the lifting of the licensing threshold for private generation, among other steps. The RMF will independently procure the resources that are needed to implement the Necom plan, Mavuso explained.

“The Electricity Minister can reinforce the plan and its progress. That is a clear part of his mandate and having a focused political principal could help smooth its implementation. I look forward to working with him to make that happen,” Mavuso highlighted.

She also reiterated the need for urgency, with loadshedding having impacted the economy considerably, and subsequently, its ratings.

Mavuso added that BLSA hoped that the new Cabinet would provide fresh impetus to the important structural reforms under way and that Ramaphosa would honour his promise to rationalise government departments, entities and programmes at the next appropriate opportunity.  

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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