A Year of the National Unity Government: Strong in Reform, Fragile in Stability

A year ago, it seemed unlikely that South Africa’s government of national unity would still be functional today, let alone enacting meaningful reforms.

Yet here we are – visa backlogs have been addressed, private partnerships are taking shape at Transnet, and government agencies are collaborating with leading IT suppliers to boost digitisation.

The level of collaboration between the business sector and government during the GNU has been unparalleled in recent history.

Thanks to Business for South Africa, we have shifted from the typical cycle of complaints and promises to genuine partnership.

Quarterly meetings with the president have yielded real results, moving beyond mere photo opportunities.

The accomplishments have been substantial.

The Department of Home Affairs has tackled the crippling visa backlog that deterred numerous tourists and skilled workers.

Processing times that once spanned months have now been cut down to weeks. Transnet has begun inviting private operators for port and rail concessions – a breakthrough that seemed impossible just two years ago.

The government’s IT procurement strategy has been overhauled, allowing departments to partner with top suppliers rather than being stalled by outdated tender processes.

These changes are not trivial adjustments.

They signify fundamental shifts in governmental operations, laying the groundwork for a digital-first public service that Home Affairs is championing.

However, we must openly recognize our shortcomings.

Eskom’s restructuring is facing unexpected delays in key areas, and the logistics sectors still require urgent attention.

Both government and businesses are committed to short-term reform “sprints” targeting these issues, but the true test will lie in execution.

More concerning is the broader economic landscape. Earlier this year, optimism was growing – it was palpable in boardrooms and investment meetings.

Then, the global trade environment shifted significantly.

The impending end of the current 10% tariff arrangement on July 9 could expose South African exports to the US to 30% tariffs, dramatically reshaping trade dynamics and requiring immediate strategic adjustments.

Business and government have been working diligently to address these international challenges, actively engaging with American counterparts as regulations change almost overnight.

Nonetheless, we need a stable coalition to help us achieve even more.

This brings us to the GNU’s Achilles’ heel: political unpredictability.

The coalition partners have yet to establish robust protocols for resolving their inevitable disagreements without threatening the entire arrangement.

Recent tensions are particularly troubling, with threats of walkouts and the decision to boycott national dialogue creating instability that concerns investors.

This undermines our ability to formulate and implement the urgently needed policies to address our numerous challenges and is likely to obstruct our ambitions for a capable state.

This fragility has significant implications.

Business confidence, which had been steadily improving, is now tainted by uncertainties surrounding policy continuity and reform momentum.

When political survival overshadows governance, everyone suffers.

Despite this, the partnership between business and government remains dynamic and focused on accelerating reforms.

Operation Vulindlela’s second phase – featuring an ambitious initiative to elevate local government performance – is set to launch with our full backing.

The challenges faced at the municipal level are considerable, but the business sector is ready to provide expertise and promote private investment in crucial infrastructure.

What we require now is political maturity from the GNU partners.

South Africans did not choose this coalition to witness its self-destruction fueled by political maneuvering.

They voted for stability and progress.

The economic partnership we’ve built shows that collaboration is effective – but it demands a government that is confident enough in its own stability to take bold actions.

The GNU’s first-year report card reflects a solid B+ for structural reforms but an incomplete assessment of political stability.

Business will continue to play its part.

The question remains whether our political leaders will prioritize partnership over posturing.

The next twelve months will be crucial in determining whether this government becomes a mere footnote in political history or the foundation of South Africa’s economic recovery.

Our economic trajectory is our top priority.

We must boost growth to the 3%-plus level we aspired to at the beginning of the year, with political stability as a necessary component.

Following that, we need to focus on transforming the economy’s functioning, from network industries to skills development.

Organised business is dedicated to facilitating bold decisions and implementing essential changes.

I hope we can continue collaborating with a government that shares the same energy and focus.

*This column was first published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso, is the CEO of BLSA.

*The views Busi Mavuso expresses in this column are not necessarily those of The Bulrushes.