By Akani Nkuna
The Democratic Alliance has launched a plan to boost the economy, while at the same time saying it will do all it can pressure the African National Congress to accept the proposed reforms and dismantle legislative barriers.
These include the Broad-Based Black Economic Empowerment Act, the Employment Equity Act and the Expropriation Act, DA leader John Steenhuisen said on Monday.
“Today, I launch the party’s six-point plan to turbocharge the economy. This bold results-driven plan outlines a set of non-negotiable demands to reform which will kick-start our economy and set South Africa on a path to growth and jobs,” he said in a statement.
The party contended that its action-oriented solutions should be favoured over the “extremely over exaggerated” lip services and dialogues, which it accused the ANC of hiding behind.
The plan firstly focuses on laws and policies that the DA claims are killing jobs,
It proposes sweeping regulatory reforms to establish a business-friendly environment which enables entrepreneurship, investment and job creation.
“This includes scrapping B-BBEE and replacing it with the DA’s non-racial economic empowerment model based on the internationally recognised United Nations Sustainable Development Goals (SDGs). This model will target poverty instead of race, ensuring that no deserving South African is excluded,” a summary of the plan reads.
“In addition, key reforms to cut red tape, simplify business licensing and permits, and exempt SMMEs from bargaining council agreements must be implemented. The DA also calls for a commission of inquiry into race-based development finance institutions, to determine how much of these funds have been distributed to ANC-linked individuals at the expense of those trapped in poverty.”
Secondly, the DA seeks to energy wealth by fast-tracking the horizontal unbundling of Eskom and establishing a competitive energy market that delivers stable and affordable electricity.
It wants the ringfencing of municipal electricity revenues for infrastructure maintenance and investment, and renewable energy projects to be expanded alongside feed-in tariffs, which support “prosumers”.
Thirdly, it proposes fixing collapsing freight rail and ports by accelerating the concession of freight rail lines and port terminals to capable private operators through transparent and competitive tendering processes.
It said this must be done alongside the modernising, upgrading and maintenance of port and rail infrastructure and the strict enforcement of the law against those who damaged or interfered with essential infrastructure.
The party has called for a comprehensive review of South Africa’s tariff regime to lower input costs for manufacturers and exporters must be implemented.
To improve digital infrastructure, Steenhuisen said the rapid rollout of broadband infrastructure must be accelerated, and free public Wi-Fi expanded nationally.
On wasteful expenditure, the DA said the first step would be to conduct a comprehensive, government-wide spending review, while strengthening the implementation of recommendations from previous reviews.
“A three-month emergency review should aim to identify wasteful, underperforming and duplicative programmes, allowing the reallocation of funds to essential public services such as healthcare, policing and education by the time the Medium-Term Budget Policy Statement is tabled,” the summary reads.
“We must also introduce a fiscal rule into the expenditure framework to serve as a clear anchor for fiscal discipline by locking national debt to the level presented in the most recent budget.
“Wherever budget waste is found, it must be cut, and a ‘ghost employee’ payroll audit must be launched to eliminate ghost workers wherever they are found.”
The plan addresses dysfunctional municipalities, stipulating that government coalitions must be stabilised.
It said this could be achieved by setting electoral seat thresholds and reducing the frequency of motions of no confidence without valid reasons. This would prevent the revolving door of mayors such as seen Johannesburg.
Local government must be professionalised through the appointment of public servants based on merit and qualification, with zero tolerance for cadre deployment, and providing access to upskilling programmes for councillors, staff and communities must be a priority to enhance governing capacity.
The last priority is combatting crime, which the DA said cost economy around 10% of its GDP each year.
It wants an Anti-Corruption Commission to be formed, and evidence-based policing and partnering with private security and neighbourhood watches to promote a whole-of-society approach.
It said the NPA must be reformed by adjusting appointment processes, conducting performance audits, and fighting for better funding, recruitment and retention of experienced prosecutors.
The DA wants lifestyle audits for all senior police management.
“South Africa is in the grip of a crime epidemic which is hampering economic opportunity by deterring investment, trade and tourism in affected areas. Crimes such as murder, assault and theft remain at unacceptably high levels, while extortion chokes our construction, entertainment and transport industries,” the statement reads.
The party will table its plans in Parliament, with Steenhuisen telling reporters it would in fact address social issues impacting the country better than the National Dialogue.
“South Africa does not need more talk. It needs action. It needs the ANC to set aside their ideologies and instead work with the DA to focus on the economy,” he said.
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