Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso expects this year to be positive for the country, as it has an opportunity to consolidate the reforms made in the past several years.

In her latest newsletter, Mavuso points out that loadshedding and other key structural impediments to the economy, such as the logistics crisis, are being addressed.

“There certainly is still much work to do on reforms to support our economy, but we should start to see the fruits of the work done.”

Mavuso says the hosting of the Group of 20 (G20) and the associated B20 business event will provide an opportunity for South Africa to demonstrate the progress made, as well as demonstrate that the country is heading in the right direction.

She notes that business has forged ahead with the B20 and appointed a secretariat that is raising the required funding.

Mavuso will be attending the World Economic Forum’s annual meeting, in Davos, Switzerland, from January 20 to 24, alongside other business and political leaders. South Africa will promote the G20 and B20 events during the annual meeting.

“The business community is taking both events seriously to ensure that the country benefits from them, showcasing the progress we’ve made and the opportunities to do business and invest in South Africa.

“A lot of effort this year will go into making that happen. A clear strategy to engage world leaders in Davos is a first step, and I’m pleased that later this week business and government will be meeting to ensure alignment.”

While the G20 presents a significant opportunity for South Africa, Mavuso notes the importance of ensuring the domestic reform agenda continues.

She points out that the partnership between government and business, which entered a second phase late last year, will help to consolidate concluded reforms and continue the important work of creating further economic opportunity.

“I am looking forward to the first business/government bilateral meeting that is happening this week with the President and his team. It presents an opportunity to set the agenda for the year ahead.

“The Government of National Unity (GNU) has committed to the new phase of the partnership and we will be working hard to ensure it is productive.”

Meanwhile, Mavuso reiterates that the GNU is proving positive for business sentiment, as reforms ranging from visas to water infrastructure show notable progress, explaining that another ratings agency, Moody’s, has noted this progress in its view of the outlook for South Africa.

“This progress must crowd in greater commitment to further reform, rather than allow us to take our foot off the accelerator. Progress takes time to work its way into real economic activity,” she says.

Additionally, while a lot of investment was delayed or cancelled because of loadshedding, Mavuso says companies will only now be regaining the confidence to forge ahead with investment plans based on a new era of stable electricity supply.

She adds, however, that the reforms to consolidate a new electricity system must still be bedded down, including the establishment of a competitive open market for electricity that could start to reverse the constant pattern of above-inflation electricity price increases experienced for over 15 years.

She also argues for the need to accelerate reforms in logistics, introducing greater competition by allowing more private-sector participants to use State-owned entity Transnet’s infrastructure in competition with each other.

“We have also signalled the importance of placing some focus on local government in the reform effort. It has been clear that local government is increasingly the major choke point in service delivery, and the focus point for wider systemic problems like the Eskom municipal debt crisis.”

Mavuso says municipal service delivery has clear implications for business, reiterating that companies have been forced to shut down, owing to unreliable water supply and refuse collection.

She notes that Operation Vulindlela, the joint venture between the Presidency and the National Treasury to accelerate reforms, has also signalled the importance of local government reform.

“The ANC’s National Executive Committee released its January 8 statement over this past weekend, and it is pleasing that one of the six priority actions for 2025 is to fix local government, ensuring water and energy security.

“This is a new front for cooperation between business and government that I hope we can make substantial progress on in 2025.”

Mavuso says BLSA will also continue its efforts to support reform of the criminal justice system, with an opportunity this year to escape the Financial Action Task Force grey list, which would be another significant positive for business sentiment.

She adds that BLSA continues to support the National Prosecuting Authority with resources to enable access to skills for complex case development while Business Against Crime works to support wider criminal justice system capacity.

“On the whole, I am optimistic for the year ahead. I look forward to working with all of you to make it a year that marks a new phase in South Africa’s recovery,” Mavuso concludes.