www . refrigerationandaircon . co . za RACA Journal I November 2023 1
RACA Journal : ISSN 1812-772X
Hot and chilled
+ 27 ( 0 ) 82 560 8718
RACA Journal Publication www . refrigerationandaircon . co . za eamonn @ interactmedia . co . za
ECONOMIC WISH-LIST
The Medium-Term Budget Policy Statement ( MTBPS ), also known as the mini-budget , is presented in November and provides an update on the country ’ s economic performance and spending priorities for the next three years .
The MTBPS is a critical tool for fiscal planning and provides a framework for the budget process . It sets out government policy goals and priorities , forecasts macro-economic trajectory and projects the fiscal framework over the next three years by outlining spending and revenue estimates , amongst others .
The Minister of Finance , Enoch Godongwana , tables the MTBPS in Parliament on Wednesday 01 November 2023 at 14:00 .
The following is my top ten wish-list for the HVAC & R industry – if not for the MTBPS at least for the National Budget next February . Some are quicker to implement than others , and some are already showing signs of movement but could be accelerated : 1 . Immediately reform Broad-Based Black Economic
Empowerment ( BEE ) requirements :
• Update BEE policies to encourage broader participation and remove barriers to entry for small and mediumsized enterprises ( SMEs ), allowing them to compete effectively for government contracts and procurement opportunities .
• Simplify BEE compliance processes , reducing administrative burdens for businesses while ensuring transparency and accountability .
2 . Boost power transmission grid and Independent Power
Producer ( IPP ) investment :
• Accelerate the development and implementation of transmission infrastructure projects to strengthen the power grid and ensure efficient electricity distribution .
• Facilitate greater involvement of IPPs by streamlining licensing processes , providing clearer regulatory frameworks and promoting private sector investments in renewable energy projects .
3 . Enhance road , rail and harbour investment :
• Increase public-private partnerships to fund and expedite road infrastructure projects , enhancing connectivity between major industrial hubs and improving transportation efficiency .
• Prioritise investment in rail infrastructure to support the movement of goods and passengers , reducing congestion on roads and lowering transport costs .
• Modernise and expand harbour facilities to accommodate larger vessels , improve logistics operations and facilitate international trade .
• Overall , prioritise the modernisation and expansion of major transportation hubs , such as ports , airports and railways , to improve connectivity and enhance logistics efficiency .
4 . Create more dedicated start-up incubators across the country that provide mentorship , networking opportunities and access to funding for aspiring entrepreneurs .
5 . Revamp TVETs and offer greater incentives for German-style apprenticeships : re-evaluate the curriculum of technical and vocational education and training ( TVET ) institutions to be led by industry needs and ensure graduates possess job-ready skills .
6 . Fast-track work permit processing to try and counter the extreme loss of skills to emigration : streamline the process of granting work permits to foreign investors and skilled professionals , reducing administrative hurdles and encouraging foreign direct investment .
7 . Create dedicated agencies to actively promote South Africa as an attractive investment destination , providing tailored support and information to potential investors .
8 . Simplify and expedite the process of registering and starting a business , reducing bureaucratic requirements and minimising red tape .
9 . Facilitate cross-border trade : implement measures to streamline customs procedures , reduce trade barriers and enhance border infrastructure to facilitate smoother trade and increase regional integration – in the same fashion as Zimborders has done at Beit Bridge .
10 . Immediately end cadre deployment and strengthen anticorruption efforts : establish specialised anti-corruption task forces with sufficient resources and authority to investigate and prosecute corrupt practices , ensuring transparency and deterring fraudulent activities .
By addressing these specific areas of concern , South Africa can remove barriers to growth , attract investments and create the necessary infrastructure for sustained economic development .
While these steps may not address all of South Africa ' s economic challenges , they provide a starting point for targeted interventions that can yield tangible and quicker results . By implementing these practical measures , South Africa can set itself on a path towards economic transformation and sustainable growth . RACA
Eamonn
www . refrigerationandaircon . co . za RACA Journal I November 2023 1