A Year of the National Unity Government: Strong in Reform, Fragile in Stability

One year ago, it seemed unlikely that South Africa’s government of national unity would still be functioning today, let alone executing meaningful reforms.

Yet here we are – visa backlogs have been tackled, private partnerships are emerging at Transnet, and government agencies are collaborating with leading IT suppliers to boost digitisation.

The partnership between business and government during the GNU has been unparalleled in recent memory.

Through Business for South Africa, we have shifted from just complaints and promises to genuine collaboration.

Quarterly meetings with the president have yielded concrete results, moving beyond mere photo opportunities.

The accomplishments have been substantial.

The Department of Home Affairs has eliminated the crippling visa backlog that deterred tourists and skilled professionals.

What once took months to process is now completed in a matter of weeks. Transnet has begun inviting private operators for port and rail concessions – a groundbreaking achievement that seemed impossible only two years ago.

The government’s IT procurement strategy has undergone a transformation, allowing departments to team up with top suppliers rather than being constrained by outdated tender processes.

These developments are not trivial administrative tweaks.

They represent fundamental changes in government operations, paving the way for a digitised public service led by Home Affairs.

However, we must openly recognize our weaknesses.

Eskom’s restructuring is experiencing unforeseen delays in critical areas, and our logistics sectors still require urgent focus.

Both government and business are committed to short-term reform “sprints” aimed at tackling these challenges, but the true test lies in execution.

More troubling is the broader economic landscape. Earlier this year, there was a palpable sense of confidence in boardrooms and investment discussions.

Then, the global trade environment shifted dramatically.

The impending expiration of the current 10% tariff arrangement on July 9 could subject South African exports to the US to 30% tariffs, fundamentally altering trade dynamics and necessitating quick strategic adjustments.

Business and government have been working diligently to navigate these international hurdles, engaging directly with American counterparts as regulations change almost overnight.

Nonetheless, we need a stable coalition that can help us achieve even more.

This brings us to the GNU’s Achilles’ heel: political unpredictability.

Coalition partners have not yet established robust protocols for resolving inevitable disagreements without endangering the entire arrangement.

Recent tensions are particularly concerning, with threats of walkouts and decisions to boycott national dialogue contributing to instability that makes investors nervous.

This undermines our ability to devise and implement the urgently needed policies to address numerous challenges, and will likely continue to impede our ambitions for a capable state.

This fragility has tangible consequences.

Business confidence, which had been steadily improving, is now clouded by uncertainties surrounding policy continuity and reform pace.

When political survival takes precedence over governance, everyone suffers.

Despite this, the partnership between business and government remains dynamic and committed to expediting reforms.

Operation Vulindlela’s second phase – which includes an ambitious plan to enhance local government performance – is launching with our full support.

The challenges at the municipal level are vast, but business stands ready to provide expertise and encourage private investment in essential infrastructure.

What we need now is political maturity from the GNU partners.

South Africans did not choose this coalition to witness its self-destruction over political games.

They voted for stability and progress.

The economic partnership we’ve formed exemplifies effective collaboration – but it requires a government that is secure enough in its own stability to take decisive action.

The GNU’s first-year report card shows a solid B+ for structural reforms, but an incomplete evaluation of political stability.

Business will continue to do its part.

The question remains whether our political leaders will place partnership above posturing.

The next twelve months will be critical in determining if this government becomes a mere footnote in political history or the cornerstone of South Africa’s economic revival.

Our economic trajectory is our top priority.

We must elevate growth to the 3%-plus level we aspired to at the year’s start, with political stability as a necessary component.

Following that, we must transform how this economy operates, from network industries to skills development.

Organised business is dedicated to facilitating bold decisions and implementing essential changes.

I hope we can continue to partner with a government that shares the same enthusiasm and focus.

*This column was first published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso, is the CEO of BLSA.

*The views Busi Mavuso expresses in this column are not necessarily those of The Bulrushes.