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JULY 2020 VOLUME 3
Thabo Mbeki Foundation
THE OFFICIAL MONTHLY NEWSLETTER OF THABO MBEKI FOUNDATION
A SMALL MATTER OF SYNCHRONISED ELECTIONS?
Inside View
LETTER FROM THE
PATRON
VOICES ON POST-COVID-19
ECONOMY
President Thabo Mbeki, Patron of the TMF
The ANC issued a statement after the June 2020 meeting of its
TMPL - BUY A BRICK
National Executive Committee (NEC) which said, among others:
CAMPAIGN
“The NEC supports the initiative by Officials and the NWC, to
GET INVOLVED engage in the development of proposals on a synchronized
national, provincial and local government elections to
enable
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JULY 2020 VOLUME 3
Two of the important wrong with the movement
better coordination and
statements contained in the itself during the years it has
implementation of policies
Freedom Charter say: served as our country’s
across spheres of
governing party. For instance
government.” the Resolution on
“No government can justly
Organisational Renewal it
To confirm and explain this claim authority unless it is
adopted at its December 2017
position ANC Secretary based on the will of the
54th National Conference inter
General Ace Magashule said: People”; and, “The People
alia said that there had
Shall Govern”!
developed among the people:
"Indeed, we are calling for
synchronised elections, one During the years preceding
“A loss of confidence in the
single elections (sic) by all the negotiations which
ANC because of social
spheres and we are saying started in 1990, many
distance, corruption,
that obviously it will need the supporters of the National
nepotism, arrogance, elitism,
Party questioned us about the
amendment of the factionalism, manipulating
meaning of these assertions.
Constitution and if we have organisational principles,
to amend the Constitution, abusing state power, putting
They insisted that they
we will engage other parties." self interest above the people.
understood that when we
said ‘the people shall govern’, Even the strongest ANC
Indeed, the Secretary General supporters agree that the
in fact we meant ‘the ANC
was correct when he said the “sins of incumbency” are
shall govern’!
new proposed arrangement
deeply entrenched.”
to hold the national,
Of course we explained to
Provincial and local elections
them, repeatedly, that the The Conference therefore
on the same day would
pursuit of the objective to resolved that it was imperative
require a Constitutional
ensure that the people shall that the ANC should go
amendment.
govern was fundamental to through a process of renewal,
the very nature of the ANC as saying:
This immediately suggests
a revolutionary democratic
that this is an important
movement. It was a matter of “Organisational renewal
matter in terms of our
strategic and not tactical therefore is an absolute and
governance processes.
importance. urgent priority, and we may
go as far as to say, to the
Naturally, it will be important
Accordingly as we entered survival of our great
for the ANC leadership to
into the CODESA and later movement.”
explain not only to its
negotiations, including
members but to the country
the post-1994 Constitutional It is obvious that the
as a whole as to why it is
Assembly, the ANC constantly degeneration of the ANC as
necessary to make the
sought to help elaborate a characterised at the 54th
proposed change in our
Constitution which would National Conference meant,
electoral processes.
best enable the people to among other things, that over
govern! time, especially the leadership
Here we will try to examine
this matter from the had turned its back on the
The ANC has openly admitted fundamental and historic
perspective of the historical
that many things have gone principles, values and
positions of the ANC.
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JULY 2020 VOLUME 2
Indeed after 1994 we
constituted a South African
Police Service (SAPS), with all
the officers having civilian, non-
military ranks, starting with the
officer-in-charge of the Service,
the National
Commissioner, working as part
of a Ministry and Department of
Safety and Security!
Much of this changed in 2010
when the then ANC
Administration restored the
military ranks of the police and
practices of the movement. function…Policing shall be changed the Ministry and
subject to public scrutiny Department of Safety and
This would include and open debate…” Security to the present Ministry
understanding of, and loyalty and Department of Police.
to the principle that the The ANC took this posture
people shall govern, based on because the apartheid All this showed that the then
the fundamental revolutionary regime had used the South ANC leadership either did not
democratic principle to African Police (SAP) as its understand the reasoning
develop the people to be their principal instrument of within the movement which
own liberators. repression. The police had resulted in the change
therefore stood out as an from the SAP to the SAPS etc,
In 1992 the ANC adopted the enemy of the people. or viewed that reasoning with
important document, ‘Ready Obviously during the contempt, and therefore
to Govern’ (R2G) which democratic period the abruptly repositioned the police
contained many of the basic formerly black oppressed as an instrument of repression,
policy guidelines which would never believe that this led by Generals etc, like the
informed many of the police force would genuinely apartheid SAP! The police
Government programmes work for their safety and massacre of mineworkers at
implemented from 1994. security. Marikana in 2012 cannot be
separated from that 2010
Among the matters discussed Recognising the fact that remilitarisation of the police.
in R2G is “A New Approach to nevertheless the new
Policing”. That new approach democracy would require Recognising the importance of
says: policing, the ANC understood this matter, the National
that the police formation Development Plan (NDP) made
“Policing shall be based on itself had to be transformed. a specific recommendation to
community support and That is why, among other “demilitarise the police”. It says:
participation…Policing things, R2G said that instead
priorities shall be determined of a Police Force we should “The decision to demilitarise
in consultation with the have a Police Service which, the police force, moving away
communities they serve… in addition, must be non- from its history of brutality, was
Policing shall be structured as militarised. a goal of transformation after
a non-militarised service
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JULY 2020 VOLUME 3
1994. The remilitarisation of We mentioned R2G because
and starts by saying:
the police in recent years has this same document also deals
not garnered greater with the issue of the electoral
“The ANC believes that there
community respect for police system about which the June
is need for strong and
officers, nor has it secured 2020 meeting of the ANC NEC
effective local government to
higher conviction rates. took some decisions.
replace the racist, sexist,
Certainly, a paramilitary undemocratic, tribalist and
police force does not augur As we return to this matter, we
corrupt structures which
also come back to the
well for a modern democracy
important value and principle presently exist.”
and a capable
encapsulated in the
developmental state. The
perspective – the people shall The ANC document prepared
Commission believes that the for discussion in Theme
govern!
police should be Committee 3 (Provincial and
demilitarised…” In November 1996, the ANC Local Government) of the
distributed a Discussion 1994-96 Constitutional
Nothing has been done to Document entitled ‘The State Assembly said about local
implement this important and Social Transformation’. government:
recommendation! The document includes this
important paragraph: “This is the level of
The 2010 radical departure government charged with
from the policies on policing “The empowerment of the the actual implementation
contained in R2G exemplified people to participate in the of the RDP to ensure the
exactly the abandonment transformation of society.
process of governance,
of ANC values and principles Hence, the task of local
expressed in the concepts of a
which the 54th ANC National government is to ensure that
people-centred society and
Conference condemned.
people-driven processes of all residents have equal
transformation, indicates the access, free of any form of
Whereas these values and
centrality of the concept of discrimination to basic
principles in R2G were the
popular and participatory services. Local government
outcome of an inclusive and
democracy to the democratic shall contribute actively
vigorous discussion within the
movement's understanding of towards the redistribution of
ANC and the broad
democratic movement, the the functioning of a resources on the basis of
2010 regression was an democratic state. It shows the race, class and gender.”
imposition by the ANC commitment of this
leadership in Government, movement to the Given this strategic goal
with no inclusive and proclamation in the Freedom visualised for local
systematic discussion by the Charter that 'The People Shall government, it was inevitable
ANC as a whole. This also that the ANC would return to
Govern!" It is the process of the
showed the extent to which the important matter of how
people becoming their own
the ANC leadership in the the fundamental principle -
governors.”
Government National the people shall govern –
Executive had also developed should relate to this critical
R2G devotes a good deal of
disrespect for the normal sphere of government!
space to a discussion
policy formation processes in specifically about ‘A New
the ANC. R2G made what might
System of Local Government’,
appear to be a routine
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JULY 2020 VOLUME 3
statement, that:
“Local government will bring
government closer to the
people…”
But to emphasise the
importance of this reality, R2G
went on to say:
“Local government will…actively
involve (the people) in decision-
making and planning processes
which affect them… Democratic
local government means more the people in decision making’. argued for an electoral
than just having the right to system based on the
vote in a local election. It also However we should note that principle of one-person-one-
includes facilitating the creation the ANC document prepared vote and argued for a
of a strong, independent civil for discussion in the proportional system of
society, a high degree of Constitutional Assembly, to distribution of seats in our
accountability, transparency which we have referred, legislatures. Of interest it
and the right to participate in reiterates a broad objective already foresaw that there
decision-making processes enunciated in R2G concerning might be need to elaborate a
which affect communities the objective that the people specific electoral system for
shall govern, and says: local government.
between elections.
“…The ANC confirms that Accordingly it said that
“Participation and
participatory democracy and “proportional representation
accountability are meaningless
mechanisms to give effect may be supplemented by the
if people do not have access to
other democratic electoral
information. The public thereto are vital to democracy
systems at local level.”
disclosure of all information in South Africa, and that civil
pertaining to any policy, society and its various
Further elaborating this view,
decision or activity for which any organisations have a crucial
the 1995 ANC document
local authority is responsible role in democratising and prepared for the
should be guaranteed. In transforming South Africa. The Constitutional Assembly
particular, meetings of the local final constitution, proposed what was
government council and of supplemented where ultimately decided that:
council sub-committees should necessary by national
in principle be open to the legislation, should provide for “The electoral system for
public.” the principles and local government must be
appropriate/effective democratic. It may include
When R2G discusses the national mechanisms of participatory both proportional
and provincial (regional) democracy, as well as for representation as well as
governments it does not include organs of civil society.” ward representation…”
this specific matter of ‘involving
As we would expect, R2G
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JULY 2020 VOLUME 3
It is quite obvious that despite split its most senior cadres By the end of the first five
the strategic posture the ANC between the national and years of democratic rule, the
adopted towards local local spheres of government. ANC began to acknowledge
government as a This was not done. the mistake it had made in
constitutionally mandated terms of the deployment of
third sphere of government, The other challenge is that its cadres among the three
with its vital role in terms of the fiscal system in place spheres of government. The
the ‘implementation of the since 1994 has allocated the result of this was that the
RDP’, not enough was done smallest share of the national country started to see more
by successive ANC revenues to local senior ANC cadres taking
Administrations to empower government. This system has leading positions in local
local government to carry out also required local government.
its projected tasks. government to rely on its
own possibilities to raise After Ambi Masondo lost the
One of the problems additional revenues from race to become Premier of
emerged from Day 1, as it each municipal area, to a Gauteng in 2000, he became
were. It is clear that the greater extent than has been the ANC candidate for the
democratic electoral process required of provincial position of Mayor of the
since 1994 has resulted in a government. Johannesburg Metropolitan
particular pattern of Municipality and was elected
distribution of the ANC cadres The reality is that essentially to that position. Duma Nkosi
with regard to the system of only the historically white was withdrawn from the
governance in our country. areas of our country had the National Assembly where he
possibility to generate chaired one of the Portfolio
The reality is that the most meaningful revenue streams Committees and became
senior cadres have been likely to be of some help with Mayor of the Ekurhuleni
deployed to serve in the regard to helping provide the Metropolitan Municipality in
principal executive, legislative municipal governments with 2001.
and administrative positions some of the resources they
in national government. The need. To the contrary it was Nevertheless it is true that as
next layer of leadership in obvious that the historically the ANC we did not pursue
terms of seniority has gone black areas, on their own, this process with the
into the rather expansive would have virtually no necessary determination. The
sphere of provincial possibility to host such longer this deficiency
government, given that we revenue streams. persisted the greater the
have nine provinces. damage that was done to
Consistently therefore, for a Accordingly the real narrative local government.
quarter-of-a-century, as the during the years of
ANC we have deployed into democracy is that the As President of the Republic I
local government the third deployment of the human addressed a session of the
layer of our leadership corps. and financial resources to NCOP meeting in Limpopo
local government by the ANC on 4 November, 2005. During
The role the ANC projected was not consonant with its this address I mentioned
for local government as early vision of the strategic role it some of the problems
as in the R2G document assigned to local afflicting local government.
suggested that it should have government. Among other things I said:
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JULY 2020 VOLUME 3
“(The) unseemly scramble for reconstruction and through this audit
political power in municipal development of our country, examination, to be seriously
government appears to be focused on the achievement lacking with some
driven by the desire to abuse of the goal of a better life for devastating consequences
elected positions to lay all.” already evident in certain
hands on the economic identified areas…
resources that the local Many years after this speech,
authorities have the the Auditor General issued his “The financial statements
possibility to access. report about Municipal of a municipality tell the
Finances covering the period story of how well a
“This includes the power of 2018 – 2019. The Report said: municipality is managed…
members of municipal The tale most often told in
executive authorities to “Those that are required to local government, however,
determine the outcomes of supervise and monitor is of municipalities crippled
municipal tendering adherence to fiscal by debt and being unable to
processes, regardless of the management laws are not pay for water and electricity;
fact that the Municipal doing so or are not effective in inaccurate and lacklustre
Finance Management Act the steps they have taken so revenue collection;
expressly prohibits the far. The money allocated to expenditure that is
involvement of councillors the delivery of certain unauthorised, irregular,
and mayors in adjudicating specified outcomes is no fruitless and wasteful; and a
bids for municipal tenders… longer in the bank and that high dependence on grants
for which it was earmarked and assistance from
“As I have already indicated, has not been delivered or national government.”
we need "municipalities that achieved. There is not much
serve all our people and have to go around, yet the right How bad the situation is in
the requisite capacity to hands are not at the till… our municipalities is reflected
provide regular and reliable in the fact that the 2018/19
services to citizens as well as “When looking across AG’s Report says that:
being at the forefront of the the board and after carefully
reconstruction and analysing the financial in two of our Provinces,
Free State and North
development of our country". statements we audited, we
can safely conclude that local West, none (0) of the
government does have municipalities got a clean
“We cannot build such a
sufficient money and assets audit;
system of municipal
to fulfil most of the basic in five of these Provinces,
government by electing
needs and aspirations of its the Eastern Cape,
councillors driven by
citizens. But a lot of Gauteng, KZN, Limpopo
criminally selfish motives, and Northern Cape, only
who have absolutely no work is needed to make sure
one (1) in each of these
interest in serving the people that this is realised. Proper got a clean audit;
and who do not belong administration and
in one of the Provinces,
among those determined to superintendence over the Mpumalanga, two (2)
occupy the forward trenches financial affairs of local municipalities got a clean
in the difficult and complex government were not audit; and,
struggle for the exercised and were found,
DEDICATED TO AFRICA'S RENAISSANCE PAGE 7
JULY 2020 VOLUME 3
in one of the Provinces, the In 2009 two scholars, Laurence committees are not
Western Cape, thirteen (13) Piper and Roger Deacon, functioning properly, if at
municipalities got a clean published a study of precisely all. They are dominated
audit. the Ward Committees the ANC by councillors and
spoke about. The study was political parties rather
This amounts to 20 out of the entitled, ”Too dependent to than by the community
278 metropolitan, district and participate: ward committees as a whole, and neglected
local municipalities in our and local democratisation in by the municipality. These
country! South Africa.”
are good reasons to be
sceptical about the
Of course we all know the The authors wrote:
democratic dividend that
“devastating consequences”
the ward committee
the Auditor General wrote “Will participatory local
government structures help system is likely to yield
about. They have been
deepen democracy in South anywhere in South Africa.”
communicated for many years
now by the persisting ‘service Africa? That is the proclaimed
delivery’ protests! purpose of the ward committee It is very clear that during
system, the centrepiece of post- the last two decades we as
We must not forget what we apartheid local government the ANC have failed to
said earlier about the principled reform, intended to facilitate realise the strategic
position the ANC had taken deliberative democratic decision objectives we set for local
that it was exactly in the sphere making." government as originally
of local government that we detailed in the ‘Ready to
would ensure that indeed the Having conducted a detailed Govern’ document.
people govern! study of the Msunduzi
Municipality in KZN, these Instead of the vibrant
Indeed in its 2006 Local authors wrote: system of local
Government Election Manifesto government which would
the ANC said: “(There was) the possibility that be characterised and
instead of deepening driven by popular
“Already we have put in place democracy, ward committees participation, genuinely
could conceivably either serving the interests of the
democratic institutions like
succumb entirely to partisan people and making a
Ward Committees and
party-political agendas, or - decisive contribution to
instituted participatory
which may be the same thing - the reconstruction and
planning processes so that you
be used to deflect and defuse development of our
can have a say in local social
popular discontent. As it turns country, we have an
and economic development. important sphere of
out, on the available evidence,
Integrated Development Plans government which in the
both alternatives proved to be
(IDPs) must rest on widespread majority of cases has been
implausible. Disappointing their
consultation with the and continues to be in
promoters and confounding
community. We are their critics in equal measure, crisis.
determined to strengthen Msunduzi ward committees are
popular forums to build an just ineffectual… However it is also true that
inclusive and truly the thirty-year-old policy
developmental system of local “In Msunduzi, between a third of the ANC on local
government.” and a half of all ward government has not
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JULY 2020 VOLUME 3
changed. And indeed there is government, cannot start with As the country must move
every reason to argue that there the decision taken by the ANC away from this position, the
is absolutely no need to move NEC to “synchronise” the ANC NEC must review the
away from the objectives to elections such that the national, decision it has taken to
ensure that: provincial and local elections are “synchronise” the elections.
held on the same day!
local government, being ANC SG Ace Magashule was
closest to the people, For one thing this would mean interviewed by the TV
functions in such a manner that the ANC, and of course all channel Newsroom Africa
other parties contesting the
that it gives expression to the on 7 July, 2020. He was
elections, would present to the
principle that the people asked why the ANC wanted
electorate one Election
shall govern; to ‘synchronise’ the
Manifesto. It is obvious that in this
it functions efficiently to elections. He explained
situation national issues would
address the basic needs of that:
take precedence, effectively
the people, with no corrupt
marginalising matters which
diversion of public resources relate specifically to “it’s saving the costs, it’s
for the enrichment of some local government, contrary to the saving the time”;
individuals; and, requirement to respect the “we want a seamless
it makes a significant particular role for this sphere of governance”, with each
contribution to the task of government as visualised in R2G sphere elected at the
the reconstruction and etc.! same time, and each for
development of our country, five years; and,
to help eradicate our colonial This would entrench processes if the Auditor General
and apartheid legacy. according to which practically submitted the audits for
local government would all the spheres of
As the ANC pursues the not be given the special focus it government at the
objective of renewal, as directed needs. Necessarily this would same time, this would
by the 2017 54th National ‘legalise’ the counter-productive “assist us to understand
Conference, it must undertake a neglect which the ANC itself has and run government
serious assessment of why it has visited on local government properly, efficiently and
essentially failed to achieve its for two decades!
actually try and
objectives with regard to Local understand how to
Government. In this context the scholars we
assist the local sphere.”
have cited, Piper and Deacon,
have written:
That assessment must help the He went on to say that by
ANC to answer the question – taking the decision to
“As former President Thabo
what should be done to ‘synchronise’ the elections,
Mbeki (in Vanderhaegen, 2005)
reconstruct the Local the ANC was “creating a
admitted in the Local
Government sphere of our dialogue in society”, and
Government Bargaining
governance system so that it “I’m sure other parties are
Council Sector Summit, 'the
reflects the vision and values primary focus has been on also actually saying it
reflected in R2G, the national government as makes sense…EFF is
Constitution and legislation? ''absolutely important'', saying let’s go for a single
provincial government as election also,
This process, leading to the "important" and local synchronised.”
reconstruction of local government as ''well, it exists'''.
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JULY 2020 VOLUME 3
He also explained that during It is important that the ANC NEC and the right to participate in
the debate that had been going must recall the positions decision-making processes
on in the ANC, some had explained in R2G properly to which affect communities
argued in favour of the view guide itself, its membership, its between elections.”
that the fact of staggered Allies and the rest of the
elections has helped “to keep democratic movement about The Covid-19 pandemic has
(the ANC) on its toes”, to what should be done to ensure further exposed the structural
encourage it “to keep in that the masses of our people faults in our country and
contact with the people”, and are served by an effective, society, the legacy of
not to “use people as voting accessible and accountable colonialism and apartheid we
robots”. system of local government. have not succeeded to
eradicate during the quarter-of-
However the view prevailed that In this context the ANC must a-century of democratic rule.
we should have ‘synchronised’ pay due attention to such
rather than staggered elections. Constitutional requirements Surely, what all of us have seen
relating to local government in terms of its impact both in
It is important to note that that it must: our teeming black urban
none of the proposals advanced townships and in our rural
during the debate mentioned “ensure the provision of villages could not but bring
by the ANC SG engaged the services to communities in a forcefully to the fore the critical
vital issue we have been sustainable manner…and, importance of the kind of local
discussing of the strategic role “encourage the involvement government R2G spoke about!
of local government as of communities and
explained in R2G. community organisations in Accordingly, when we say that a
the matters of local post-Covid-19 South Africa must
It is obvious that the core of the government.” be radically different from
winning argument about an what it was before the arrival of
eminently political matter was To repeat what was said earlier the coronavirus on our shores,
administrative rather than in this document, citing R2G: this must also mean that the
political! It was also based on sphere of government
what is clearly a strange “The ANC believes that there is closest to the people, local
understanding of what is need for strong and effective government, must also be
needed to achieve “seamless local government to replace the radically different from
governance”! racist, sexist, undemocratic, what it has been for two
tribalist and corrupt structures… decades!
It is important that the ANC
NEC must recall the positions “Local government will…actively
explained in R2G properly to involve (the people) in decision-
guide itself, its membership, its making and planning processes
Allies and the rest of the which affect them… Democratic
democratic movement about local government means more
what should be done to ensure than just having the right to
that the masses of our people vote in a local election. It also
are served by an effective, includes facilitating the creation
accessible and accountable of a strong, independent civil
system of local government. society, a high degree of
accountability, transparency
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TOURISM RECOVERY FOR SUSTAINABLE SOCIO-
ECONOMIC DEVELOPMENT – QUO VADIS SA TOURISM?
an inclusive growing economy.
While other economic sectors
have been experiencing a shift
from unskilled and semi-skilled
labour to skilled labour, the
tourism sector still offers ample
opportunities for all three labour
categories. Because of the high
levels of youth unemployment in
our country, many of whom lack
requisite skills for the job market,
some tourism subsectors have
become a site for super-
exploitation and unfair labour
Mmamoloko Kubayi-Ngubane, Minister of Tourism
practices. Shorn of these negative
practices, the tourism sector’s
The South African For the past 9 years, tourism
capacity to create jobs can
government, in its efforts to has been the fastest-growing
significantly contribute to the
combat the spread of Covid-19, economic sector in the creation of an inclusive
declared a national state of world. In 2019, it accounted economy.
disaster on the 15th of March for 10.3% of global GDP and
2020 and subsequently 330 million jobs or 10.4% of Furthermore, the barriers to entry
imposed a national lockdown total employment. In South for entrepreneurs who want to
which commenced on 26th Africa, the sector accounts participate in the tourism sector
of the same month. The for 2.9% of GDP (8.6% are low in terms of financial and
lockdown entailed closure of indirect), supports over skill set requirements.
operations of non-essential 725,000 jobs (1.49 million Accordingly, we have seen a
industries to prevent the indirect) and accounts for growing number of women and
spread of the disease at the 8.2% of total investment youths who are entering the
workplace, closure of activity. Perhaps most sector.
international borders, importantly, inbound
restriction of inter-provincial tourism generates R82.5 However, most of these new
travel and restrictions on billion in direct foreign spend entrants often battle to escape
people’s movements outside (R126.7 billion total), the survivalist status because they
their homes. contributing an equivalent of are often weighed down by lack
9.2% of total national of access to finance for business
expansion; lack of funds to
The lockdown brought the exports.
acquire the necessary training to
tourism industry to a standstill.
manage a growing business; and
Except for the few In addition to the recent
lack of access to the market
accommodation facilities that rapid expansion, tourism’s
especially for black-run
were used for quarantine ability to absorb unskilled,
businesses. Many of these
purposes the rest of the semi-skilled and highly
businesses have already been
tourism activities were skilled people makes it an wiped out by the lockdown which
inactive. important sector in creating
DEDICATED TO AFRICA'S RENAISSANCE PAGE 11JULY 2020 VOLUME 3
has significantly setback the Italian experience, we During the month of April,
transformation in the sector expected that the impact was some 50,000 businesses
and by extension inclusivity. going to be devastating and we were closed and estimates
advised businesses to start were that, without some
The centrality of tourism in preparing for the worst. In kind of intervention,
modern economic hindsight, no amount of between 550,000 – 600,000
development is such that it preparation could have jobs were going to be lost in
has been included as one of adequately prepared businesses the tourism sector by the
the tools for delivering the in the sector for the scale of end 2020. We, therefore,
devastation that we are
targets of Goals 8, 12 and 14 had to intervene in a
witnessing today.
of the sustainable manner that would ensure
development goals (SDGs) that some areas the tourism
The outbreak of Covid-19 has
on inclusive and sustainable sector opened sooner rather
effectively temporarily
economic growth, than later. Thus, in
collapsed the supply and
sustainable consumption collaboration with the
demand market of the tourism
and production (SCP) and sector. According to the world private sector, we initiated a
the sustainable use of travel & tourism council “…75 process of developing
oceans and marine million jobs are at risk, and health and safety protocols
resources, respectively. This without swift action … one in four for the various tourism sub-
means that tourism is of new jobs around the world and sectors to prepare for
vital importance in the fight the 10.3% (US$8.9 trillion) reopening. The sector
against poverty, contribution to global GDP, will players became alive to the
unemployment and not be generated and the global fact that until such a time
inequality as well as the economy will struggle to
that an effective vaccine is
preservation of natural recover”.
discovered the entire value
resources. Hence, the Covid- chain of the tourism sector
19 pandemic poses a major The government’s adoption of will have to adjust their
stumbling block the risk-adjusted strategy was a operations to the new
for tourism but most recognition of the need to strike normal and assume more
importantly for the a delicate balance between responsibility in protecting
achievement SDGs. protecting livelihoods and employees and customers
containing the spread of the from the virus.
Before the declaration of the virus. Different economic sectors
national state of disaster were placed at various levels of Because of the jointly
and imposition of the risk, ranging from 1 to 5, developed health and
national lockdown the depending on the perceived risk safety protocols, when the
department of tourism that each sector poses. At the country moved to level 3
convened a meeting with time the strategy was adopted some of the tourism
the tourism sector players, tourism activities were placed at subsectors were opened
public and private, to level 1 which meant that tourism but a significant portion of
discuss the likely impact of was only going to open when the the sector remained
Covid-19 pandemic on virus had been completely inactive.
tourism. Guided by what contained or upon the discovery
was already happening of a vaccine. It is estimated that R54.2
around the world, especially billion in output may
already have been lost
DEDICATED TO AFRICA'S RENAISSANCE PAGE 12JULY 2020 VOLUME 3
between mid-March and the staff - The number of enterprises advice on health and safety
end of May this year. The have furloughed staff since the measures, and support for
sector now faces a potential April survey has stayed constant, commercial debt
75% revenue reduction in with a minor reduction in the repayment climbed higher
2020, putting a further R149.7 number of enterprises who have on the priority list. Most of
billion in output, 438,000 jobs furloughed all staff. 34% of these businesses have been
and R80.2 billion in foreign enterprises (34% also in March) appealing for the
receipts at risk. have furloughed more than 50% government to provide
of staff, and 16% of enterprises them with a financial relief
To quantify the extent of the have furloughed all staff, package.
impact of COVID-19, the compared to 18% in March.
department in collaboration The performance of the
with tourism business council Redundancy - The numbers of South African economy has
of South Africa (TBCSA) and enterprises making most of been shambolic for the past
International finance their staff redundant has decade. Faced with
corporation (IFC), conducted stayed constant over the last growing social needs, it was
surveys, the first one was few weeks. 11% of enterprises unavoidable for our budget
administered in April and the (11% in March) have made deficit to widen and the
second in June. The first more than 50% of staff debt to GDP to increase.
survey had 1610 respondents redundant, and 5% of This means that the
and the second, 1501. In both enterprises (7% in March) government finds itself
surveys, 99% of responding made all staff redundant. fiscally constrained and
firms are affected by COVID- therefore, does not have the
19. This means their cash flow What the surveys have also shown resources to provide
was disrupted and is that the longer the financial support for the
further complicated by the shutdown of the sector persists businesses that are in
struggle to maintain the more businesses will permanently distress.
liquidity needed to reimburse close. Inevitably, such a situation
consumers for booking would create concentration at the Despite the constraints, the
cancellations. top with few big firms that survive government put together
the crisis making it difficult for the the Covid-19 Loan
The results of the June survey sector to transform in terms of Guarantee Scheme worth R
indicate that businesses ownership. 200 billion for businesses in
have taken various measures distress, the Temporary
to cope under the To deal with the booking Employer/Employee Relief
circumstances which include cancellations, the most commonly Scheme (TERS), established
the following amongst other applied mitigation measure by to provide financial relief to
things: businesses is a deferment of
employees during the
bookings instead of cancellation
Covid-19 through the UIF
and providing refunds.
Wage reduction – as it and other tax benefits.
was during the April
In a similar pattern to the results
survey, and it has The Tourism Relief Fund
from the April Survey, all
increased to include 55% businesses prioritized the need for which assisted 4 000
of enterprises with more financial support for cash flow, businesses with R 50 000
than half their workforce financial support for recovery, each could only sustain
on reduced wages. and tax relief. In the June survey, most of the recipients for a
Furloughed expert advice on business recovery,
DEDICATED TO AFRICA'S RENAISSANCE PAGE 13JULY 2020 VOLUME 3
month or two. TRF was made available are not To stimulate demand, an
conceptualised for a scenario sufficient to meet the needs of aggressive marketing strategy
in which the spread of the all the businesses in distress butwill be adopted locally and
virus would have been they will go a long way in internationally. Tourism has
contained by the second protecting businesses from total become very competitive sector
quarter of the year. Had it collapse. thus we will need to do a lot of
been the case, the grant work to remind travellers that
would have gone a long way In an epidemiological scenario South Africa is a truly inspiring
in saving a larger proportion that assumes that we will be destination, combining
of the Small, Medium and over the worst by October and
powerful social justice history,
November, the virus spread risk
Micro Enterprises (SMMEs). breath-taking natural beauty,
reduction will coincide with the
and warm, welcoming people.
peak season of the tourism
Following a meeting with
sector in South Africa. In
freelance tourist guides in The second phase will
preparation for this eventuality,
which they expressed their emphasize managing the re-
we have, after extensive
plight, the department to put opening of the sector and
consultations with the
together the Tourist Guides stakeholders, developed a draft driving long term growth in
Relief Fund. A sum of R30 tourism Recovery plan which tourism supply and demand.
million has been set aside for after another round We will also use this period to
this programme and it consultation, we will, within the sort out issues such as the
will provide relief for the month August, submit to readiness for the rollout of the
recipients for a period of Cabinet for Approval. e-visa system and resolution of
three months. the challenges around the
The plan proposes several issuance of licenses for tour
A further R 40 million interventions. We envisage that operators.
budgeted for Green Tourism the first phase of interventions
Incentive Programme (GTIP) will primarily focus on the Amongst the key drivers for the
to encourage private tourism protection of the domestic rapid tourism growth in
enterprises to move towards supply side of the sector. As the last decade were stronger
more efficient utilisation of already mentioned the impact global economic growth,
energy and water resources of the pandemic on the supply growing middle class in
will be speedily disbursed so side of the tourism value chain emerging economies, more
that it can assist in reducing has been devastating. Supply- affordable air travel, increased
operational costs. side interventions necessarily
flight capacity, technological
have to initially focus on
changes, new businesses
maintaining business continuity,
South African Tourism will models and greater visa
aligning the value-chain to
also provide an exemption for facilitation around the world.
health and safety standards,
up to 12 months of the Despite the devastating impact
as well as increased support for
grading assessments and fees of the pandemic most of these
SMMEs and market access. This
followed by a payment
will require the mobilization of drivers have not regressed
holiday of 100% grading investment for the sector from which increases the odds for a
discount to aid the recovery both private and public sources. rapid tourism recovery.
of the sector. The investment gap is currently
estimated to be around R 7 So far the indications are that
We are cognisant the relief billion. tourism recovery will experience
schemes that have been several phases,
DEDICATED TO AFRICA'S RENAISSANCE PAGE 14JULY 2020 VOLUME 3
from hyper-local to pre-Covid-19 levels because, private sectors to ensure a
community attractions, in the absence of a vaccine, it standardised, global
through broader domestic will take time for our country to approach to the crisis.
tourism, regional land and build confidence that travelling
air markets to the to our country safe. We are Since the outbreak of the
resumption of worldwide currently making efforts to Covid-19, the many
international travel. ensure that we host multiple positive steps the tourism
global events so that the sector has taken towards
In 2019, domestic holiday country regain its status as a opening up have only
trips increased by 170.6% to preferred destination for been achieved when
reach 7.1 million compared business travellers.. government and the
to 2018 and accounted for private sector have worked
24.8% of all domestic trips. Internationally, we have been closely together. It
This is an indication that engaging with global bodies therefore stands to reason
South Africans are to get guidance and to that for us to put the
beginning to have an coordinate with our partners sector on a sustainable
interest in exploring their around the world, especially our recovery trajectory, a close
country. Before the source markets, in preparation working relationship
resumption of international for the sector recovery. We have amongst the stakeholders
travel, efforts will be made participated in virtual meetings is an absolute necessity.
to capture the outbound with the G20 tourism ministers,
market by enticing them to the UNWTO virtual conference
PUBLIC-PRIVATE
travel within the country. on Policies for Inclusive
PARTNERSHIP CRITICAL
Recovery in Global Tourism, the
When we open AU First Meeting of the Bureau NOW MORE THAN EVER
international borders we of the Subcommittee on FOR AGRICULTURAL
expect that the regional Tourism of the Specialized DEVELOPMENT IN SA.
market will quickly pick up. Technical Committee on
Africa land markets form Transport, Transcontinental and
the bedrock of tourism in Interregional Infrastructure,
South Africa. This region Energy and Tourism (STC-TTIIET)
alone accounts for 71% of and the WTTC. The broad
international arrivals. In 2019 consensus in these forums,
international arrivals which we have embraced, is
declined by 2.3% to a total that countries must:
of 7.2 million.
Adopt global health and
We anticipate that safety protocols to assure
international travel for travellers that it is safe to Wandile Sihlobo, Chief economist of
travellers from outside the travel again. the Agricultural Business Chamber of
African continent will only Implement a rapid test and South Africa (Agbiz)
pick in the first quarter of trace strategy to help The South African agricultural
next year. The number of contain the spread of the sector has the potential to be
inbound international virus amongst the sectors that will
travellers will gradually grow Foster greater collaboration drive economic growth and job
between the public & creation towards post-COVID-19
recovery. In a strict sense, the
DEDICATED TO AFRICA'S RENAISSANCE PAGE 15JULY 2020 VOLUME 3
path to realising this The Department of Agriculture, Given these structural
growth does not need new Land Reform and Rural challenges, the Master
policies. The South African Development is currently Plan will have to lucidly
government should rather, drafting the sector Master Plan articulate ways and means
recast its vision of along with private sector players. to increase investment, as
agricultural development Such a plan should prioritize well as the improvement
sing chapter six of the high-value job-creating sub- or capacitation of local
National Development Plan sectors that have untapped governance. A clear and
(NDP) as a point of potential, and not only focus on solid business model will
the traditional commercial
departure. always attract investment.
enterprises. Such areas involve
In the case of investment,
the former homeland regions of
The NDP proposed a three- agriculture is a long-term
South Africa, government land
tier approach for agriculture economic activity with
and also underperforming land
and agro-processing to good returns if executed
reform farms. The Master Plan
reach their fullest potential soundly. Given this reality,
should map out these areas and
conduct informed land-use the South African
of creating one million jobs
planning. Another crucial step government will have to
by 2030, namely, the
will be to understand why clarify its long-term view
development of on land reform policy, not
agricultural development has
underutilized land especially only for areas that are
lagged over the past two
in former homeland areas decades in such regions, while already farming
and failed land reform farms productivity in commercial commercially (especially
(which could unlock up to agricultural areas has more than in these uncertain and
400 000 jobs), the doubled since 1994. challenging pandemic
expansion of export- times) but also for the
orientated high growth There are several reasons which former homelands, where
explain this disparity in fortunes, investment and
areas (up to 250 000 jobs)
the major ones being lower commercial agriculture is
and investment in vertically
levels of investment, inadequate set to make the most
integrated agro-processing impact to rural livelihoods.
infrastructure, and limited farm
(up to 350 000 jobs). But management expertise.
what will need to be done Concerning investment, poor A renewed drive on the
differently from this point land governance, both in the prioritization of public-
onwards (and not wait until former homelands and some private partnerships
the pandemic ends) for the underutilized land reform farms, (PPP)is now more critical
realisation of this broad have been the key than ever in bringing
vision is the adoption of a impediments. About the lack of about development.
infrastructure, the problem has The private sector will not
strategic project
been compounded by poor only bring “know-how” to
management approach with
service delivery in various local the state but also much-
detailed operational plans needed capital. South
municipalities, especially those in
and key milestones to guide former homelands towns of Africa already has
officials, various South Africa. The dearth of farm examples of such PPP
stakeholders and efficient management expertise has been from which to build on.
resource allocation exacerbated by limited access to These include, but not
information, extension and
training.
DEDICATED TO AFRICA'S RENAISSANCE PAGE 16JULY 2020 VOLUME 3
limited to, the Sernick Group weather conditions permit, the and effective service
in the beef sector in the Free government should encourage delivery in marginal areas.
State and the Humansdorp the expansion of horticultural The government will have
Co-op in the Eastern Cape, production as this subsector has to take an investment
which focuses on field crops higher labour absorption
friendlier approach, which
and horticulture. Both multipliers than other subsectors
is still anchored in
companies have partnered of agriculture, in addition to also
development. The PPP
with government and having higher export-orientated
value.
approach is one such
communities to empower model, and several case
black farming businesses studies can be used to draw
All these ideas aren’t new. There
with the requisite
is no need to re-invent the lessons from.
knowledge to
succeed.backlogs, wheel. Rather, the focus should
REFLECTIONS ON CHOICES
be on understanding why there
AND OPPORTUNITIES FOR
has been institutional inertia,
The Master Plans should AFRICAN ECONOMIES
low levels of policy
reflect on such examples of POST-COVID-19.
implementation, and lack of
successful Public-Private
informed project management
Partnerships and further
over the past two decades.
innovate and develop
Addressing the stumbling
institutions which effectively
blocks to development (i.e.
drive and sustain
investment, infrastructure and
development. Moreover, this
knowledge) and focusing on
post-COVID-19 agricultural
effective implementation are
development plan should
also encompass the agro- the key ingredients of a
processing segment of the successful post-COVID19
value chain, as that will add agricultural sector. Samuel Ojo Oloruntoba, is a Lecturer at
TMALI and Associate Professor-
to job creation and rural
International Political Economy, UNISA
development. On this Given that the private sector’s
particular point, private role might have been less The Coronavirus and its
sector investment will need pronounced in the past, the resultant disease, COVID-19, hit
to be attracted. tight fiscal position that the the world like a thunderbolt.
South African government is What started in Wuhan, China
Therefore, the agriculture currently in demands external in February 2020 has become
and agro-processing Mast funding to drive development a global pandemic that
Plan should also reflect on and agriculture. This means for continues to ravage both
strategic incentives for firms the better part, agricultural developed and less developed
to expand agro-processing development towards a countries. Apart from the huge
in various towns which were post-COVID19 era will require health implications of COVID
not predominantly deeper and greater 19 in terms of loss of many lives
agricultural. This might be in participation of the private and overstretched health
the form of tax incentives for sector. However, effective facilities, the virus has led to
various agricultural hubs private sector participation severe macro and
which will be determined by demands that government microeconomic problems
the type of agricultural provides greater levels of policy in terms of job losses, lost
activity. In areas where certainty, especially land reform, investments, and lost
DEDICATED TO AFRICA'S RENAISSANCE PAGE 17JULY 2020 VOLUME 3
productivity in the world Central Banks of various countries efforts to produce and
economy. These were due to in Africa have released billions of disseminate accurate and
the lockdowns-imposed dollars to kickstart the economies timely information about
lockdown as a means of and boost their capacity to cope COVID-19 for the public in
containment and effective and continue in business. In some Africa.
management of the countries, palliatives were also
pandemic provided to the poor. As COVID 19 continues to
evolve in Africa, the
African countries have so far Additionally, given the limited pandemic has created
reserves of virtually all countries in
demonstrated resilience, opportunity to reflect,
Africa, the governments invited
creativity, innovation, and rethink and re-strategize
the private sector to contribute to
courage in managing the the health, economy and
emergency funds. The responses
epidemic. Several countries educational policies on the
have been impressive. The
across the continent have continent. The pandemic
international community have
responded to the pandemic clearly shows that there is a
also contributed to some of these
through a mix of well crafted funds with the European Union, huge gap between the
economic and health United States of America, China required and available
interventions, that continue making donations to the health infrastructures.
to shape the evolving emergency funds. The COVID 19 is a respiratory
realities of one of the most international Monetary Fund has disease which requires that
inscrutable challenges of our provided loans to help countries in hospitals are equipped with
time. difficult macroeconomic ventilators and oxygen.
conditions and suspended interest What has emerged is that
Countries like South Africa, payment on existing loans. 10 countries in Africa have
Senegal and Ghana no ventilators at all.
developed massive test The UK has helped in the forms of
capacities, through making medical supplies to Ghana in the As COVID 19 continues to
own test kits, developing first instance. At the scientific evolve in Africa, the
tracing apps and making level, several initiatives are pandemic has created
personal protective ongoing in universities and opportunity to reflect,
equipment. African countries research institutes to find rethink and re-strategize
also established isolation solutions to the pandemic. For the health, economy and
centres to treat infected instance, the new COVID-19 Africa educational policies on the
Rapid Grant Fund led by the
people. Laboratories have continent. The pandemic
National Research Foundation
been revamped to clearly shows that there is a
(NRF) South Africa and supported
accelerate the turn around huge gap between the
by an international collaboration
time for test results. required and available
of funders including UK Research
health infrastructures.
and Innovation (UKRI) has a
Governments on the COVID 19 is a respiratory
launched a call for research
continent have also proposals to look at prevention, disease which requires that
embarked on the massive diagnostics and treatments of hospitals are equipped with
rollout of stimulus packages COVID-19. The £3.8M fund also ventilators and oxygen.
to the private sector as a includes an innovative component What has emerged is that
means of revamping the to bolster science and health in 10 countries in Africa have
economies so badly affected no ventilators at all.
by the lockdowns. The
DEDICATED TO AFRICA'S RENAISSANCE PAGE 18JULY 2020 VOLUME 3
According to the World the shabby state of medical teeming jobless youth are
Health Organization, there infrastructures and facilities in productively engaged in various
are fewer than 2,000 many parts of Africa. Despite the sectors of the economy. The
ventilators across 41 creativity that has been deployed multi-stakeholder approach
countries in Africa. Nigeria in response to the current adopted in the wake of the
with a population of pandemic, the previous neglect of pandemic can be explored to
200million only has 100 the health sector calls for urgent shore up capital to finance key
ventilators. South Africa, with action for prioritisation of health activities geared towards
the most advanced health as a public good, with resultant revamping the economy in
higher allocation in the budget. Africa.
infrastructure boasts of 3215
medical ventilators, which is
Like other parts of the world, Additionally, the governments
less than half of what the
COVID 19 has negatively impacted of African countries should
country needs to cope with
on the African economy. Tourism ensure that they provide
the pandemic. According to
has been affected in ways that incentives to the private sector
South Africa’s Health
have led to the loss of billions of in the form of removing
Department, 2,105, or dollars in revenue as well as a loss obstacles to doing business, in
roughly two-thirds, of the of millions of jobs. The informal ways that can foster
available medical ventilators nature of the economy worsened productivity and
in the country are in the the impacts of the lockdowns competitiveness. On the other
private sector. In a country imposed by countries. Borrowing hand, the private sector should
where access to private to meet the immediate needs of pay competitive wages and
medical services is costly and the suffering masses through other benefits to workers as a
only available to a very tiny palliatives has compounded an social imperative. Small and
part of the population, this already dire debt situation. medium scale enterprises hold
is problematic and the ace for job creation. Thus, it
symptomatic of deeper The pandemic has created a is incumbent on governments
structural problems in the unique opportunity for African to invest massively in the real
country. leaders and other stakeholders to and services sectors of small
rethink and re-arrange the and medium scale enterprises.
Although donors have been economy in ways that can be Efforts should also be made to
sending medical ventilators more inclusive, participatory, add value to the various raw
to different African countries, resilient, and sustainable. This will materials and minerals before
the small number of such require a massive program of export.
investment in job-creating
critical equipment indicated
infrastructures such as road and Given the disparities in the
the massive neglect that
rail constructions, industrialization economic capacity of African
hospitals in Africa have
and standardization of the countries, a regional integration
suffered over the years.
informal economy. Tourism is approach should be
Rather than investing in and
critical to the revitalization of the strengthened by supporting
equipping hospitals, many
economy. African countries and ensuring the success of the
political elites in Africa will should put in place safety African Continental Free Trade
rather embark on medical measures and gradually restart Agreement. This will help to
tourism to Britain, the United this sector as being done in other build complementarity, foster
States of America or India. regions of the world. sharing of resources and
The pandemic has revealed benefits of trade and
Training and upscaling of skills are investment.
very critical in ensuring that the
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