To Stimulate SA ’ s Economy , Remove Development Obstacles
By Howard Betts Chairman , Betts & Townsend www . bettstownsend . com
In considering the recent budget speech by Finance Minister Tito Mboweni , it seems clear that he aims to ignite South Africa ’ s economy and stimulate positive growth . This is more critical than ever before . It is a year since the government declared a state of disaster in a bid to combat the spread of the Covid-19 coronavirus and almost 18 months since the effects of the disease began to be felt around the world . Statistics South Africa has just confirmed that our economy contracted by a record seven percent as a result of the Covid-19 pandemic – the worst contraction in 90 years . It is not just important , but critical , that we get SA ’ s economy back on track .
It is well known that one of the best ways to stimulate economic growth is through the development of infrastructure . Transportation , power and water infrastructure benefit everyone
in the economy as public goods , and their creation is generally a good stimulus for GDP growth . It enables development in the private sector , too . Construction activity in both public and private sectors stimulates job creation , builds skills and ultimately improves the lives of the citizens of a country .
All this is good in theory but putting it into practice is another matter . How do we take these noble aims and start translating them into reality today ?
The construction industry has been plagued by difficulties for some time . Besides the delays on projects from the so-called construction mafia ( which is a subject for another time ), perhaps an obvious place to look is at the council approval process .
It appears that council officials continue to receive full pay whilst only working one or two days a week , purportedly
10 Winter is Here