PHUTI MOSOMANE
THE ANC’s 55th national conference concluded its business on Friday night, announcing a raft of key policy proposals and interventions, which included, among others, resolving the energy crisis, poverty and inequality, the burning issue of the land, a review of state-owned companies and the mandate of the South African Reserve Bank (SARB).
The ANC, which elected new leaders in December, held the second leg of the party’s 55th national conference through a hybrid format in Mangaung, Free State, from the fifth to the sixth of January 2023.
The first part of the conference was held at the Nasrec Expo Centre, south of Johannesburg.
Observers believe that internal factionalism is impeding party reform and has been hampering its ability to address unemployment and entrenched inequality in South Africa.
Key policy reforms, for instance, on energy security, jobs and the green energy transition, have stumbled in the past few years due to internal party divisions, ineffective leadership and poor governance.
But now all eyes will be on President Cyril Ramaphosa, his fellow national office bearers (NOBs) and members of the National Executive Committee (NEC) to see whether they will implement key resolutions of the conference in order to improve the lives of ordinary people in South Africa.
Critics say Ramaphosa’s leadership is sometimes paralysed by his need to build consensus within the ANC, a far cry from the decisiveness he showed when he was a union leader and General Secretary of the National Union of Mineworkers (NUM) in the turbulent 1980s.
For now, it remains to be seen whether Ramaphosa has a backbone to accelerate inclusive growth, job creation and a just energy transition as promised at the 55th national conference.
“The resolutions that we adopted at #ANC55 are focused both on the immediate challenges that the country faces and the fundamental transformation of social and economic relations that are necessary to build a better life for all,” said Ramaphosa.
“The #ANC55 resolutions outline clear actions that need to be taken as a matter of urgency to resolve load shedding in the shortest possible time and to ensure the country’s energy security into the future.”
Below are some of the key policy proposals and interventions:
Economic transformation|
The national conference wants the government to accelerate transformation of the financial services sector, and in doing this, the party wants the Public Investment Corporation (PIC) to deliberately target black-owned companies with a view to accelerate transformation.
The party’s head of Economic Transformation, Mmamoloko Kubayi, said the party wanted the PIC to do more in ensuring that the black businesses are fully funded.
“PIC must be deliberate in funding black owned firms,” Kubayi told journalists on Saturday.
“The 55th conference also reaffirmed the independence of the South African Reserve Bank but wanted it to play a role towards economic growth and reducing unemployment,” Kubayi said.
The constitutional independence of the South African Reserve Bank must be reaffirmed, according to the conference.
It said the SARB should also implement monetary policy in a balanced manner, taking into account growth, employment, and exchange rate factors.
According to Kubaryi, the conference has also resolved that there must be special dispensation where military veterans are capacitated to manage state-funded businesses.
“Conference has resolved that we cannot allow a situation where our military veterans are sleeping under the bridges. The state must assist military veterans, Kubayi said.
“For the Military Veterans, the ANC should support the creation of relevant institutions for military veterans, including SMME’s and Cooperatives that enable the military veterans to have sustainable incomes and livelihoods. This should also include empowerment programmes to facilitate access to land and other economic enablers for military veterans.”
State bank
Continuing from previous policy debates, the conference resolved that State banks must be established in South Africa. The ANC conference wanted to reduce dependency on the state, delegates wanted a bank dedicated to human settlements, and one on social housing.
Government should move with speed in implementing the resolution on the State Bank including finding a way to capitalise the bank, said Kubayi.
SMMEs
The conference resolved that there must be two separate departments – one on small and informal businesses. For this, the conference wants to see the focus on macro-businesses being a separate department completely.
“When both small and macro enterprises are grouped together, it becomes a burden on small businesses. The conference wants red tapes to be eliminated,” said Kubayi.
Public infrastructure:
On public infrastructure, the conference resolved that the government must build infrastructure that is climate resilient.
There should be integration of climate resilient methods in infrastructure planning and development, the conference resolved.
The conference also recommended accelerating the implementation of the Economic Reconstruction and Recovery Plan to advance, amongst other objectives, increased infrastructure investment, improved energy security, and wider access to improved data services.
“Expanding investment in infrastructure to improve community access to basic services, increase the overall efficiency and competitiveness of the economy … and structural reforms of network industries, including electricity, telecoms, water, rail, aviation, and road infrastructure to improve performance.”
Social Compact
ANC resolved to review NEDLAC. The party said it wanted to look at how NEDLAC is composed, and said so far it has proven “not to be active”.
“There is a need to review whether NEDLAC is currently configured in a manner that would yield the desired results in relation to building the new consensus which will make the social compacts possible.”
Energy crisis
ANC conference resolved that the power utility Eskom must be placed under the Department of Minerals and Energy, and not the Department of Public Enterprises.
“The ANC conference wants the government to stop loadshedding immediately. Delegates want the government to explore both gas and nuclear,” Kubayi said, adding that delegates wanted BRICS countries involved in solving energy crisis in SA.
On energy or ‘just transition’, Kubayi said the conference resolved that it is important to keep the lights on while transitioning.
Government must therefore, while focusing on green energy and renewables, utilize what it has – Coal. She said the ANC believes in an energy mix, and government must do more to manage competing interests in the energy sector.
SOEs
Conference has resolved that state-owned enterprises must be realigned to relevant departments. If the move is subsequently approved by ANC Lekgotla and the Cabinet, Transnet will be under the Department of Transport.
Eskom will report to Mineral and Energy Department while Denel will be under the Department of defence and military veterans.
Kubayi said the alignment will happen without compromising the developmental role of the SOEs.
The conference delegates said the comprehensive review of South Africa’s SOE portfolio to determine on the balance of evidence which should be retained, consolidated, or repositioned should continue.
“The principle of balance of the evidence must guide our structuring and restructuring of state owned enterprises and our decisions to increase or reduce public ownership in order to advance our economic programme,” said Kubayi.
“SOEs that operate in specific sectors of the economy should be placed under the relevant government departments – transport SOEs be placed under the department of transport.”
Land
The conference has resolved that the government must purchase land and distribute it to people. Delegates in this 55th conference focused more on making productive agricultural land available for distribution.
“The state must acquire land in the spirit of distribution. Priority must also be given to those who are currently working the land,” Kubayi said.
The party has also resolved that the capacity of the Land Bank should be strengthened to deliver on its mandate.
Government should also maximize the implementation of the new Expropriation Act which is at an advanced stage in Parliament.
The conference also said that the process of bringing underutilised land into production should be accelerated, and that the new Land Reform and Agricultural Development Agency should be speedily implemented.
SABC
The conference has resolved that the mandate of the SABC must be reviewed to make the public broadcaster more developmental.
There will be an introduction of households levy to replace the TV license fee. The party intends holding public consultation on this.
INSIDE POLITICS
