19 October 2017

BUSA gravely concerned over latest Cabinet reshuffle

Business Unity South Africa (BUSA) has expressed grave concern with the latest cabinet reshuffle, the second in less than 8 months, which has seen a change in ministers in key portfolios including energy, home affairs, telecommunication and higher education all of which are directly relevant to the work that BUSA is engaged in on behalf of business.

“Stability and certainty are a pre-requisite for business confidence, translating directly into the country’s economic growth potential. Political and economic stability is required to ignite inclusive economic growth and generate much-needed employment and revenue to pursue our social goals. This latest reshuffle further undermines prospects for South Africa’s growth.” BUSA CEO Tanya Cohen said.

BUSA expressed particular concern with the lack of stability in the energy sector taking into account that the lack of permanent CEO and Board Chairperson at Eskom, issues around the central energy fund portfolio including Petro SA and the Strategic Fuel Fund,  and that this reshuffle had resulted in the second new Minister of Energy this year.

BUSA has consistently requested the Department of Energy and the Minister to ensure that the Integrated Energy Plan and Integrated Resource Plan take into full consideration business views that have been submitted. The change in Minister may well take the country back another step in this regard, thereby delaying the finalisation of a sustainable and affordable energy solution for the country.

Cohen said BUSA remains anxious about South Africa’s fiscal and macroeconomic position which requires greater certainty on the direction and credibility of government policy, and the impact that these changes will have on the forthcoming Medium-Term Budget Policy Statement.

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