The Steel and Engineering Industries Federation of Southern Africa (Seifsa) will continue to advocate for more private sector participation in public infrastructure this year, with CEO Lucio Trentini stating that many of the country’s challenges can be best addressed through private-public partnerships (PPPs).
“Fixing South Africa can be done one way only: the government and business working hand-in-hand,” he said in a message to Seifsa members on Monday.
He stated that members should brace for another “challenging” year, citing wage negotiations, general elections, loadshedding, high inflation, geopolitical uncertainty and a volatile exchange rate.
This while the global outlook also remains weak with high interest rates and persistent geopolitical turbulence, which impacts negatively on business and investor confidence.
Heading into the elections, Seifsa hopes politicians will “embrace reality and commit to doing what is best for South Africa”, while the federation also wishes for good news on the loadshedding front, particularly as the Electricity Minister will have been a year in office in March.
Seifsa points out that the economy contracted by 0.2% in the third quarter of 2023, with the full-year expectation is growth of 0.8% - which is not welcome news, given rising unemployment levels and high input costs.
Further, economic contraction implies less tax revenue for government, which means less money to meet its many commitments.
Another eroder of public finances is Transnet’s R47-billion support package announced in December, which is to help the State-owned freight utility meet its immediate debt obligations.
However, the conditionality attached to the bailout will ensure greater private sector participation in the logistics sector, which will enhance efficiencies and competition.