Copy of the slides as delivered by the facilitators of the 5 themes - - PowerPoint PPT Presentation

Copy of the slides as delivered by the facilitators of the 5 themes to the President in the report back session.

14 January 2020

Fumani Mthembi

Energy Security

Founder & Director | Pele Energy Group

Energy Security

Top 3 Topics

• Eskom
• Carbon Impact
• Renewable Energy

Eskom

Critical issues

• 1. Implementation of Eskom Roadmap
• 2. Technical Capacity
• 3. Leadership

Implementation of Eskom Roadmap

Opportunities for Business and Government:

• Reskilling
• Reduce Political Interference
• Decentralisation

Eskom

Critical issues

• 1. Presidential Commission for Climate Change
• 2. Definitive Plan
• 3. Climate Change

Carbon Impact

Presidential Commission for Climate Change

Opportunities for Business and Government:

• Deregulation and collaboration
• Incentivising reduced carbon
• Investment Strategy

Carbon Impact

Critical issues

• 1. Expedite licensing and smart tape for private sector
• 2. Implementation of IRP
• 3. Review IRP on regular basis

Renewable Energy

Expedite licensing and smart tape

Opportunities for Business and Government

• Deregulate private sector participation
• Embedded generation regulation
• Unlock hydrogen economy

Renewable Energy

Dr Abba Omar

Enabling a Capable State

SGM: Strategy & Communications | The Banking Association of South Africa

Desired Outcomes

• Good governance, ethical leadership, integrity, crime free, independent,

apolitical, strong fiscus, checks and balances

• Decisiveness, vision, accountability, transparency, delegation of power
• Execution, functioning, capacity, resource optimization, dexterity, effective,

adaptability, agility, enabling framework for basic services

• Competence, skills, meritocracy, training and development, mix of young and old and

transfer of skills

• Policy clarity and certainty, cohesion, appropriate, reduce red tape, aligned to the

Constitution

• Professional, service culture, trust, caring, improve culture
• Fit for purpose
• Inclusivity, sustainability, growth, collaborative, measurable progress, clarified
• utcomes, clarity of roles

Enabling a Capable State

Enabling a Capable State

Topics

• Private Sector Crowding in
• Public Private Partnerships
• SOE Reforms
• Infrastructure Development
• Fiscal Management (including budget 2020)

Enabling a Capable State

Private Sector Crowding In

Critical issues

• 1. The challenge of government crowding out the private sector
• 2. Effective partnerships and need for greater trust
• 3. Shift in attitudes of bureaucrats towards the private sector
• 4. Policy frameworks should embed opportunities for private sector

involvement (e.g. around renewables programme) – water, waste management

• 5. Require better project preparedness -necessary before the private sector

can invest

• 6. Perceived lack of skills e.g. technical assistance, mentorship and

development

Enabling a Capable State

Opportunities:

• “Invest with heart”
• Collaboration in terms of skills
• e.g. artisan development
• Transfer of skills – reestablishment of technocracy – crowding in skills
• Private sector to play bigger role in project management

Private Sector Crowding In

Enabling a Capable State

Critical issues

1. A need for broader collaboration

1. Part of social compact based on trust – build a common purpose and vision

2. Government needs to signal its desire to do PPP’s 3. Require national commitment and not ideological dogma around PPP’s 4. Ground rules need to be established

1. Need a balancing act between risks and rewards, need for a fair deal 2. Balancing the developmental objective of providing services vs. return on investment 3. Framework for regulating conflict and competition

5. Clear and consistent policy to apply to all SOEs/parastatals

Public Private Partnerships

Enabling a Capable State

• Opportunities for collaboration:
• Scope for better efficiencies
• Creating better ecosystems (black industrialists and SMMEs) to leverage opportunities
• Skills training – vocational, hard skills (c.f. Germany) e.g. electricity, water, sewage,

health, education

• Need for strong Competition law

Priorities:

• Implementation – finding quick wins / urgency
• Private sector must help combat corruption

Public Private Partnerships

Enabling a Capable State

Public Private Partnerships

Roles: Business

• Capital investment
• Skills
• Execution
• Elimination of corruption

Roles: Government

• Clearer role of development and

rules of the game – policy certainty

• Identify opportunities
• Transparency & simplicity
• Execution
• Elimination of corruption

Enabling a Capable State

Critical issues

1. Policy certainty

1. Assess the critical necessity or otherwise of state owned institutions 2. Differentiate between commercial sustainability and the developmental mandate 3. Different business models and drivers

2. Important to have common purpose – what is the end game? 3. The need for delegation – should follow policy certainty 4. The imperative for independence

1. Self-funding / levels of debt (only applies to commercial sustainability mandate)

SOE Reforms

Enabling a Capable State

Opportunities:

• 1. The necessity for collaboration, training, centralized technology / non

duplication of physical infrastructure (efficiencies)

• 2. Cost benefit analysis required
• 3. Is there critical necessity for strategic tool

SOE Reforms

Enabling a Capable State

SOE Reforms

Roles: Business

• Independent expertise

Roles: Government

• Policy certainty
• Regulation

Enabling a Capable State

Critical issues

1. Lost opportunity to implement – poor planning and lack of skills 2. Funding – inability to attract investment, to manage the funds we have (misappropriation) 3. Collapsing infrastructure – lack of maintenance, degeneration at high scale, as well as destruction 4. Corruption – patrimonial state; opportunities limited to a few in government, lack of inclusivity (e.g. SMMEs) 5. Policy instability e.g. BEE Scorecard – indicates that our approach is reactive, short-term (build rather than fix) 6. Eliminate duplication and achieve better alignment NPL

Infrastructure Development

Enabling a Capable State

Opportunities:

• Policy revision – need to be agile to drive collaboration
• Community engagement is vital - development and repair – brought in

earlier to consultation process

• Ownership
• Crowd-funding
• Involvement of professional bodies
• Key priority – enabling environment (clear and stable policy)

Infrastructure Development

Enabling a Capable State

Infrastructure Development

Roles: Business

• Come with ideas on how to take

infrastructure forward

• Funding
• Execution
• Technology

Roles: Government

• Enabling environment
• Asset registry
• Ownership rights
• Funding

Enabling a Capable State

Critical issues

1. The mission of the State is to meet the needs of the public 2. Government must formulate and implement policy to meet the needs of the public 3. Current crisis requires:

1. Control and reprioritize expenditure through a growth lens 2. Need to focus on increasing revenue e.g. improve growth rate and tax collection, enforcement (e.g. tobacco trade) 3. Lower government debt e.g. PPP’s 4. Attract FDI - capital flight in different forms (legitimate / illegitimate) – requires confidence

4. Do more to raise revenue from informal sector

Fiscal Management

Enabling a Capable State

Opportunities:

• Where private sector can collaborate – need for better engagement by govt
• Making economy more inclusive to improve the levels of revenue, lower

barriers to entry for SMEs,

• Improve culture of payment and enforcement

Fiscal Management

Enabling a Capable State

Summary and observations

• The need for a social compact
• Commitment to developing South Africa’s human resources
• Policy certainty and transparency
• Implementation, implementation, implementation!

Enabling a Capable State

• Adv. Mtho Xulu

Critical sectors for Economic Growth

President | South African Chamber

• f Commerce and Industry (SACCI)

Critical Sectors for Economic Growth

Top 3 Topics

• Agri-Industry
• Tourism
• Manufacturing

Agri-Industry

Critical issues

• 1. Market Access
• 2. Infrastructure
• 3. Innovation & Training

Market Access

Opportunities:

§ Support for SMMEs § Sound Implementation of Policy and Regulations § Access to Finance § Alternative Farming Methodologies

Agri-Industry

Market Access

Agri-Industry

Roles: Business

• Innovative Financing
• Skills Training
• Inclusive Business Model

Roles: Government

• Regulator
• Sound Implementation of Policy

Framework

• Government as an enabler
• Government as a connector

Critical issues

• 1. Safety & Security
• 2. Marketing
• 3. Infrastructure and Connectivity

Tourism

Safety & Security

Opportunities:

• Infrastructure Development
• State and Community Crime Prevention Programs
• Improvement of the Adoption of Technology

Tourism

Khulekani Mathe

Structure of the Economy

Head of Transformation and Financial Inclusion | The Banking Association

• f South Africa

Structure of the Economy

Top 3 Topics

• Unlocking small business potential
• Skills and training
• Key drivers for jobs 2020 – 2025

Unlocking small business potential

Critical issues

• 1. Remove barriers to entry
• 2. Paying timeously
• 3. Local focus, innovation and empowerment

Opportunities:

• Networking structure to enable private sector to procure from local suppliers
• Local supplier development
• Punctual payment from business and government
• Review of cradle to grave infrastructure
• Mentoring and coaching platforms
• Access to technology / Wifi / systems

Unlocking small business potential

Remove barriers to entry

Unlocking small business potential

Roles: Business

• Procure local first
• Empower and develop through

mentorship and support

• Punctual payment

Roles: Government

• Reduce red tape (from start-up to

meeting production requirements)

• Improve the ease of doing

business

• Review tax regime for small

businesses

• Punctual payment

Critical issues

• 1. Access to technology / Wifi / broadband
• 2. Right skills to fill future needs and opportunities
• 3. Destigmatise technical careers
• 4. Remove difficulties in bringing technical experts from abroad to

upskill locally

• 5. Drop

Skills and training

Opportunities:

• Create workplace training spaces
• Tax breaks for private training facilitates
• Create new specialist training institutions
• “Adopt a TVET” approach”

Skills and training

Skills and training

Roles: Business

• Mentoring and coaching

programmes

• Funding

Roles: Government

• Adapt regulations for setting up

new institutions including tax breaks

Tilson Manyoni

4IR

Head of Policy| Black Business Council & Managing Director | VisionWave

4IR

Top 3 Topics

• Future Of Work
• Skills Revolution
• Start-Ups Ecosystem

Critical issues

• 1. Adoption of Technology
• 2. Education System responsive to industry
• 3. Technology Infrastructure to support remote work
• 4. Open Talent Economy
• 5. Life-Long Learning

Future Of Work

Adoption Of Technology

Opportunities:

• Building alliances with infrastructure partners
• Tax-breaks for Training
• Leverage technology
• Labour & Business engagement
• Innovative broadband packages
• Co-Investing in infrastructure/research

Future Of Work

Adoption Of Technology

Future Of Work

Roles: Business

• Support mobility & job rotation
• Training
• Create enabling environment
• Infrastructure partnerships

Roles: Government

• Rationalise SOEs/Reduce

duplication

• Data and Privacy
• Update of Labour Laws
• Create incentive framework

Summary and observations

• The future of work topic was selected as the priority of the work group because it

serves as an overarching umbrella to analyse and address the challenges posed by the Fourth Industrial Revolution.

• It presents a unique opportunity for social partnership to bring together business,

government, labour and civil society to actively collaborate in defining the current and future direction of the economy.

• For this reason, we identified the need for a high-level Nedlac structure to engage
• n the Future of Work.