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IOL News
08-05-2025
- Business
- IOL News
IDPs should shape an economically enabled environment
Strategic infrastructure development remains a cornerstone of the effectiveness of an IDP. Image: Supplied. South Africa's municipal planning season is in full stretch as local governments carve out their respective development plans for 2025/2026. A lot is a stake for the elected public officials, with just about a year to go until the next local government elections. The Integrated Development Plan is an essential blueprint for a municipality that informs its overall framework for socio-economic development. IDPs play a fundamental role to direct municipal councils on how to allocate resources as well as how political officials aim to aid development of their areas. They are prioritised given their ability to integrate a municipality's strategic goal and force all relevant departments to be on the same page. One can say that, over the past years if not decade, respective IDPs developed across South Africa's municipalities simply look to address issues instead of creating new avenues that can foster local economic development. This is evidenced by the several reports by the Auditor General highlighting how poor planning and coordination continues to be seen; poor implementation, weaknesses in infrastructure development and service delivery that further exacerbates the poor conditions of municipalities. Interestingly IDPs still continue to be developed in full compliance. However, with processes still being ignored, this results in poor implementation and a failure to fulfil service delivery. Infrastructure and basic services remain central towards creating a healthy environment for foreign investments. This is only possible through plans that can easily address problems faced in local government to diversify economic participation and facilitate job creation. As South Africa finds way to enhance its environment for long term sustainable economic growth, IDPs need to be curated factoring key levers to facilitate enabling conditions for investments: Infrastructure Development Strategic infrastructure development remains a cornerstone of the effectiveness of an IDP. With more than R51 billion allocated, development plans need to be proactive blueprints that develop basic infrastructure projects instead of only addressing endless backlog of challenges. As the current infrastructure struggles to cater for the current demands, more work is required to ensure that infrastructure development caters for road construction, waste management services, and most critically electricity and water supply. Development of local infrastructure requires to be aligned with national government's aggressive infrastructure investment programmes set out in its Economic Reconstruction and Recovery Plan. Video Player is loading. 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Advertisement Next Stay Close ✕ Business-Friendly Policies Investor friendly policies facilitate easy access and entry of new businesses in municipalities. The integration and implementation of inter-sectoral planning into IDPs, ensures that strategic plans such as Integrated Transport Plans (ITPs) and Integrated Waste Management Plans (IWMP) feed into the overall delivery of basic services that can encourage the private sector to play an impactful role in creating job opportunities and optimise local economic development. The current Review of White Paper on Local Government is one of the most critical processes being conducted by government to improve the governance and how municipalities operate for sustainable development. The White Paper will also be expected to address red tape, bureaucratic hurdles and administrative simplification in municipal processes, which will be able to make engagement between government and businesses much more efficient. Public-Private Partnerships The latest amendments to the municipal public-private partnership regulations showcase a growing need for effective collaborations amongst various stakeholders, more especially between government and private sector. Amendments include limiting the ability of accounting officers to cancel successful PPP projects, providing greater security for investors. This includes enhancing transparency and accountability in municipal PPP project management. With the decline of new project transactions in South Africa, harmonizing the environment with long term plans and programmes through the IDP can encourage private sector to participate in the delivery of much‐needed infrastructure, and ease pressure on stretched government finances. As the IDP prioritises inclusive economic growth, working closely with the private sector for enhanced developments will be capable to intensify socio-economic upliftment, foster comprehensive urban development and channel municipality's effort to integrated and sustainable urban planning. Concerted efforts and a pragmatic approach to IDP planning is the only way possible to ensure municipalities sustainably grow and remain attractive for business to operate in them. However, this can only be possible if public officials can commit towards actions and planning that make development plans more meaningful instead of being idealistic dreams. Nkululeko Dhlamini is the Public Affairs Manager for Nestle Eastern and Southern Africa Region (ESAR). Nkululeko Dhlamini is the Public Affairs Manager for Nestle Eastern and Southern Africa Region (ESAR). Image: Supplied.
TimesLIVE
29-04-2025
- Business
- TimesLIVE
Powering progress: South Africa, the AfDB and the infrastructure imperative
The country's geopolitical stature positions it as both a contributor to and a demander of coherent multilateral reform By South Africa has entered a new era — politically recalibrated, economically pressured, yet fundamentally poised. The 2024 general election, resulting in the country's first national coalition Government of National Unity under President Cyril Ramaphosa, was not just a political outcome — it was a societal reset. South Africans demanded a new social contract: delivery over rhetoric, partnership over posturing, credibility over complexity. In his campaign and subsequent inaugural commitments, Ramaphosa emphasised infrastructure renewal, energy security, youth employment and national coherence as pillars of renewal. The task now is not to define direction — but to deliver at scale. The economic headwinds remain sobering. In 2024, GDP growth hovered at 1.1%, well below the levels needed to address poverty and exclusion. Unemployment stood at 31.9%, with youth unemployment exceeding 44%. Public infrastructure continued to underperform, with deteriorating logistics capacity and ongoing energy insecurity compounding economic constraints. The 2024 Electricity Regulation Amendment Act marked a major policy shift, opening the generation and transmission sectors to competition and seeking to reduce dependence on Eskom. However, implementation bottlenecks persist, and the gap between legislative intent and lived experience remains wide. Amid this environment, infrastructure is not just a sector — it is the backbone of recovery. The government's Economic Reconstruction and Recovery Plan rightly centres infrastructure-led growth, but delivery capacity and funding constraints have limited momentum. South Africa's capital expenditure as a percentage of GDP remains below 6%, far from the National Development Plan's 10% target. Logistics inefficiencies alone are estimated to cost the economy billions of rand annually. Transnet's operational and governance challenges have undercut freight reliability, while delays at major ports continue to undermine trade competitiveness. I propose the creation of a Private Capital for Africa platform — housed in Johannesburg — to crowd in institutional investors, deploy blended finance tools and de-risk large-scale regional infrastructure. Dr Sidi Ould Tah This is why the updated National Infrastructure Plan 2050, Phase 2 (released in 2024), declared: 'A fit-for-purpose infrastructure delivery system is a precondition for inclusive economic participation, regional trade, and long-term fiscal resilience.' That framing reflects the reality: South Africa's infrastructure challenge is not only national — it is continental. As the anchor of the North—South Corridor and a key node in the Maputo Development Corridor, South Africa's success in unlocking logistics performance has direct implications for Sadc trade volumes, intra-African commerce and African Continental Free Trade Area implementation. In this landscape, South Africa needs a multilateral development partner that not only shares its sense of urgency, but also matches its institutional sophistication. The African Development Bank (AfDB) has shown glimpses of this. In 2024, the AfDB approved a $1bn sovereign facility to support Transnet's recovery — one of the clearest signals of confidence in the state's commitment to reform. The bank has also contributed to Just Energy Transition efforts, from concessional project preparation to financing renewable energy pilots and public — private structuring. But the scale of South Africa's infrastructure imperative — and the shifting global landscape — demand a more decisive, fit-for-purpose partnership. Global economic realities are evolving fast. Fiscal tightening, geopolitical fragmentation and climate financing imbalances are reshaping the development finance ecosystem. South Africa's own geopolitical stature — as a G20 member, Brics founder and climate diplomacy broker — positions it as both a contributor to and a demander of coherent multilateral reform. As debates intensify around SDR Special Drawing Rights rechanneling, multilateral development banks reform and global infrastructure liquidity, I believe the AfDB must become more than Africa's lender. It must become its bridge. And that includes being a credible internal steward — governed with the transparency, institutional discipline and accountability that member states like South Africa have long championed. This is where I believe the AfDB's upcoming leadership transition matters, not as a continental ritual but as a strategic inflection point. I offer a vision that aligns with South Africa's expectations: credible delivery, innovative capital mobilisation and institutional relevance. As president of the Arab Bank for Economic Development in Africa (Badea), I helped reposition the institution from a quiet partner to an influential force — mobilising Africa—Gulf co-financing, targeting SMEs and supporting infrastructure corridors with agility and accountability. Under my leadership, Badea attained prestigious AA+/AAA credit ratings, quadrupled project approvals, modernised its digital systems and expanded total assets from $4bn to nearly $7bn — all while maintaining one of the lowest non-performing loan ratios (0.4%) among African development finance institutions. My platform for the AfDB speaks directly to South Africa's core priorities. I propose the creation of a Private Capital for Africa platform — housed in Johannesburg — to crowd in institutional investors, deploy blended finance tools and de-risk large-scale regional infrastructure. This responds directly to South Africa's call for the AfDB to partner more strategically with its own development finance institutions such as the Public Investment Corporation, the Development Bank of Southern Africa and the Industrial Development Corporation — pools of capital that remain under-leveraged for African integration. My proposal to scale AfDB's annual capital mobilisation to $50—60bn through hybrid instruments, sovereign wealth partnerships and diaspora finance aligns with South Africa's preference for innovative, non-distortionary financing that does not increase debt distress. Beyond capital, my focus on institutional integrity — through a proposed Pan-African Results & Governance Lab embedded in the bank — reflects South Africa's long-standing emphasis on fiduciary control, transparency and performance culture. This commitment builds on my introduction of environmental, social and governance-aligned sustainable financing frameworks and ISO-certified governance systems during my tenure at Badea, credentials that mirror South Africa's own calls for accountable multilateralism. The need for institutional discipline, not just policy ambition, has never been clearer. With a reformist state, deep financial markets and advanced project planning systems, South Africa is not short on technical capacity — it needs a partner that can co-implement. And that co-implementation must be based on trust and shared vision. In South Africa's case, the most impactful development partnerships are those that work horizontally — not just from capital provider to state, but across institutions, development banks, private capital pools and regional alliances. This is where the AfDB, under the right leadership, can amplify what South Africa already possesses: a sophisticated institutional base and a continental integration agenda that is both credible and executable. South Africa's credibility on the world stage — particularly on matters of climate finance, regional stability and multilateral equity — is not accidental. It is the product of decades of institution-building, diplomacy and democratic resilience. The next AfDB leadership must recognise that countries like South Africa are not merely recipients of development finance — they are architects of its future. A strong, responsive and politically attuned AfDB must amplify that influence, not compete with it. My platform is not a promise — it is a blueprint. It is not only about who leads the AfDB, but how it is led. For South Africa, the choice must be strategic, not sentimental. The development bank it helped to build must now evolve in tandem with its own transformation. The moment demands alignment between national ambition and continental delivery. South Africa has done the political heavy lifting. It is now time for the institutions around it to match that seriousness — with resources, with reform, with partnerships and with results. The AfDB, under the right leadership, can be the partner that powers this next chapter. Dr Sidi Ould Tah is one of the candidates running for the African Development Bank presidency. He previously held the position of minister of finance, economic affairs and development in Mauritania
IOL News
29-04-2025
- Business
- IOL News
MK Party calls for Finance Minister Godongwana's resignation amid economic turmoil
MK Party spokesperson Nhlamulo Ndhlela. Image: Itumeleng English / Independent Newspapers The uMkhonto weSizwe Party (MK Party) has joined the growing list of organisations calling for Finance Minister Enoch Godongwana's resignation. The party has also formally tabled a motion of no confidence against Godongwana in Parliament, citing his tenure marked by fiscal mismanagement, contempt for the poor, and loyalty to discredited neoliberal dogma. "South Africans deserve leadership that rejects austerity and market fundamentalism. They deserve a bold, caring, and people-driven economic future, one led by the MK Party," it stated. The party's call comes after the Western Cape High Court's decision to suspend the 'unlawful' VAT increase announced by the ANC and DA-led Government of National Unity (GNU). The MK Party is the latest party to call for his resignation after the EFF and the DA. It described the GNU's economic policies as an "austerity dictatorship" that has brutally imposed suffering on South Africans. In a statement, the party's spokesperson Nhlamulo Ndhlela highlighted the failures of the GNU's Economic Reconstruction and Recovery Plan (ERRP), which it claims is a blueprint for mass impoverishment. The MK Party criticised the ERRP, saying it is built on savage austerity, anti-worker reforms, and stifling monetary policy that has destroyed any prospect of meaningful recovery. "The so-called 'differences' between the ANC and DA are pure theatre, a choreographed spectacle between ideological twins committed to deepening inequality and looting the country," Ndhlela said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading "The SARB has fuelled this assault through aggressive interest rate hikes, refusing to cut rates amid worsening economic hardship." According to the party, Godongwana's call for resignation comes amid a deepening economic crisis in South Africa. The country is facing high levels of unemployment, poverty, and inequality, with many citizens struggling to access basic services like electricity, water, and transport. The MK Party's call for Godongwana's resignation adds to the growing pressure on the Finance Minister to step down. EFF's president Julius Malema, on Monday called for Godongwana's resignation after the court's full bench set aside the adopted 2025 Fiscal Framework and Revenue Proposals and suspended the implementation of the 0.5 percentage point VAT increase which was set to come into effect on May 1. The EFF and the DA had approached the court to have the VAT increase announcement by Godongwana as well the adoption of the finance committees' report by both Houses set aside. After the matter was argued, the Finance Minister announced that the VAT increase would not be implemented, saying his legal team had settled the matter outside of court with the DA.
IOL News
29-04-2025
- Business
- IOL News
MK Party warns of deeper economic crisis amid VAT suspension
Slamming the GNU's economic agenda, the MK Party accuses the ANC and DA of deepening inequality and looting, while calling for people-centered policies and the resignation of Finance Minister Godongwana. Image: Timothy Bernard / Independent Newspapers The uMkhonto weSizwe Party (MK Party) has welcomed the Western Cape High Court's decision to suspend the Democratic Alliance (DA)- led government's planned increase in Value Added Tax (VAT), but warns that the ruling is merely a temporary fix in the face of what it describes as a deeper economic and governance crisis. MK Party spokesperson Nhlamulo Ndhlela says the VAT suspension, while necessary, "addresses only a symptom of a deeper crisis" and accuses the so-called Government of National Unity (GNU) of pursuing a brutal program of austerity, privatisation, and anti-poor policies. At the centre of MK's critique is President Cyril Ramaphosa's Economic Reconstruction and Recovery Plan (ERRP), which the party calls a 'brutal blueprint for mass impoverishment.' Ndhlela said: 'Cloaked in technocratic language, the ERRP is a war against the poor, built on savage austerity, anti-worker reforms and suffocating monetary policy that has destroyed any prospect of meaningful recovery.' The MK Party dismissed perceived policy differences between the ANC and DA as 'pure theatre,' calling them 'ideological twins committed to deepening inequality and looting the country.' It also took aim at the South African Reserve Bank, accusing it of exacerbating the crisis through aggressive interest rate hikes that have ballooned the state's debt burden and further eroded fiscal space. Criticising the government's priorities, the party condemned ongoing plans to privatise key state assets, including Eskom, Transnet, and water boards, arguing these moves will deny millions of South Africans access to essential services and dismantle the developmental role of the state. Ndhlela warned that South Africa is 'on the brink of governance collapse,' citing the GNU's failure to lawfully adopt a budget for 2025/2026, which he said has plunged the economy into instability and tax chaos.
