IN response to the President’s State of the Nation Address (SONA) delivered last week, the Durban Chamber of Commerce and Industry said it believes this year’s was largely positive and contained numerous promises. However, it commented that the Address appeared to be more focused on reactive measures and crisis mitigation rather than proactive, long-term solutions.
The Chamber, which represents approximately 3,000 businesses in eThekwini and beyond, highlighted the following points in its post-SONA comment:
Presidential eThekwini Working Group (PeWG)
It said the PeWG’s efforts to stabilise eThekwini’s economy and strengthen business confidence are noted, and that it has observed this working group making significant progress in addressing critical challenges that have threatened Durban’s economic stability. “This collaboration has not only delivered tangible improvements in confidence and service delivery but has also demonstrated the positive outcomes that can be achieved when government and the private sector work together in the interests of business. While much work remains, we are encouraged by the direction taken and the progress already visible. However, it is essential to focus on sustaining and further improving business confidence. Investor confidence has risen before, but the true test lies in our ability to maintain it over the long term,” the Chamber commented.
Cheap and illicit goods
The presidency’s efforts in addressing the threat of illegal and cheap goods were another point highlighted by the Chamber. It said: “As organised business, we believe that government took a long time to address this threat, and they further failed to provide clear timelines in terms of when these efforts will roll out. We are seeing our manufacturers, especially our SMMEs, being impacted significantly, and we need to see mediation taking place immediately. As organised business, we believe that we need to leverage our strategic assets and position Durban as a manufacturing hub. Whilst we promote international trade, we need to focus on becoming a self-reliant economy. It is only then that we will be able to see drastic changes to South Africa’s economic growth.”
Water shortages
Efforts to address water shortages as well as the R156 billion allocated for water and sanitation infrastructure over the next three years was welcomed and acknowledged. “Many businesses have already had to absorb the costs of downtime and independent water purchases simply to ensure productivity continues. This highlights the pressing need for sustainable maintenance, infrastructure, and planning to ensure economic stability.”
AGOA
The Chamber said it was surprising that the president did not provide any context regarding the African Growth and Opportunities Act (AGOA), especially given the benefits it offers and the uncertainty surrounding the agreement. Whilst it did acknowledge his firm stance on sovereignty and his emphasis on the African Continental Free Trade Area. The Chamber said it seeks clarity on AGOA to better understand South Africa’s standing within the agreement.
The non-profit company representing eThekwini business concluded that the SONA highlighted that South Africa is moving in the right direction, offering promises and ambitious plans to address challenges that have long impacted businesses. “As organised business, we believe that for us to see tangible progress, implementation must be prioritised, and the SONA must align meaningfully with the Budget to ensure delivery,” the Durban Chamber of Industry and Commerce concluded.
