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Thabo Mbeki Foundation - Inside View - Polity.org
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,

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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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JULY 2020                                                                                 VOLUME 3

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

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JULY 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

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JULY 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,

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JULY 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,

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JULY 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

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JULY 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.

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JULY 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

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JULY 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

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JULY 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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