Business

Ramaphosa met with more than 90 CEOs and business leaders this week – this is what he told them

President Cyril Ramaphosa met with more than 90 chief executives and business leaders on Tuesday (21 July) to debate the affect of the latest social unrest in Gauteng and KwaZulu-Natal, and the federal government’s recovery efforts.

In the conferences, Ramaphosa mentioned that there is just about no a part of the financial system that has not been affected by the violence, and there is in all probability no a part of the nation that won’t really feel the results in some kind or one other due to the best way its provide chains work.

“We cannot understate the impact on the country of the disruption, destruction and looting that took place last week. Together, KwaZulu-Natal and Gauteng account for 50% of GDP, and are home to 45% of all South Africans.”



The riots and looting that swept via these provinces in July precipitated extreme injury to companies, in addition to South Africa’s status as a secure nation. Analysts estimate the week of havoc price the financial system R50 billion in GDP, and put 150,000 jobs in danger.

Ramaphosa acknowledged that the federal government was not ready for violence, destruction and looting on this scale, however that the capabilities of the state had additionally deteriorated in recent times.

“We need to acknowledge the impact of state capture and that the hollowing out of institutions had a direct impact on the capabilities of the state. We have made important progress to take corrective measures, but there is much more work to be done.”


Restoring and sustaining stability

Ramaphosa mentioned that the federal government’s first precedence is to revive and keep stability.

“We have significantly increased the presence and visibility of security forces on the ground in KwaZulu-Natal and Gauteng. The bulk of the 25,000 SANDF personnel has been deployed in support of the police and other law enforcement agencies.”

Ramaphosa mentioned that the safety forces have been deployed to areas within the provinces considered potential hotspots, key financial and authorities installations, procuring centres, warehouses and factories.

They may also be accountable for conserving vital provide routes open, significantly the N3, and safeguarding the transport of products.

“The work of the safety cluster is being supported by enhanced intelligence gathering and evaluation from the bottom. Specialised legislation enforcement models proceed investigations into these chargeable for instigating this violence with a number of to speedy arrests and efficient prosecution.

“Special measures are being put in place to manage the large number of suspects who have been arrested for unrest-related offences.”


Secure important provides

Ramaphosa mentioned that the federal government’s second precedence is to safe important provides.

“We need to take every available step to ensure the return our ports and rail lines to full operation, restore manufacturing capacity of vital goods as quickly as possible and put in place contingency measures where facilities have been badly damaged or stocks looted or destroyed.”

The president mentioned that money may also be securely transported and will likely be obtainable in enough portions to customers and companies all through the 2 provinces.

He mentioned that authorities may also concentrate on making certain that medicines can be found, well being services are functioning, and Covid-19 testing and vaccination websites are absolutely operational.


New bundle 

The authorities’s third precedence is offering reduction and beginning to rebuild, he mentioned.

“We are in the process of providing immediate food relief to households. We are targeting areas affected by the looting and where people have no access to food. Provincial Departments of Social Development and SASSA are providing support in the form of food parcels, cash and food vouchers.”

Ramaphosa mentioned that the federal government is additionally finalising an intensive social and financial reduction bundle that may help poor households and present help to affected companies and staff.

This reduction bundle will:

  • Respond to the speedy wants of poor households affected by each the pandemic and the latest violence;
  • Help companies to rebuild within the aftermath of looting and destruction of property;
  • Support sectors which are affected by restrictions on financial exercise; and,
  • Contribute to the longer-term purpose of accelerating progress, boosting employment and eradicating poverty.

“This package will include both the extension and repurposing of some of the Covid-19 relief measures and specific relief for sectors affected by the violence like retail and property,” he mentioned.

The authorities will announce the small print of the bundle throughout the subsequent few days.


Transformation

Ramaphosa mentioned that the federal government’s fourth precedence is ‘accelerating inclusive economic recovery’.

“The violence and destruction of the last two weeks have provided the starkest reminder of what is at stake. It has exposed several of the social and economic faultlines in our society and underlined the urgent need to decisively address poverty, inequality and unemployment.”

He mentioned it was essential that South Africa’s recovery plan accelerates the restructuring and transformation of the financial system in a means that creates alternatives for the hundreds of thousands of unemployed South Africans.

“We need to work jointly – as government, business and labour – to reassure investors and to continue to promote the diverse investment opportunities that exist in our country. To this end, we should consider undertaking joint ‘roadshows’ to engage with investors in key centres to convey a common message.”

“The actions we take now must make a visible impact on the lives and living conditions of the majority of South Africans.”


Read: How a lot money kings, queens and conventional leaders receives a commission in South Afric


Back to top button