Media & News

SAVCA Statement on the 2022 State of the Nation Address

Government and Private Sector to bolster efforts at increasing investor confidence and economic growth

During Thursday evening’s State of the Nation Address, President Cyril Ramaphosa outlined various areas of improvement within the scope of his Cabinet, as he highlighted the growing need for both the private sector and government to collaborate more vociferously to bolster the growth of the economy and create much needed jobs as the country endures its highest unemployment rate to date.

SAVCA is in full support of the President’s plight for the public and private sector to work together seeking to close the gap between unemployment, poverty and inequality.  

SAVCA continues to advocate for a healthy investment landscape, one in which both local and international investors are able to inject much needed funding into the country in order to grow the economy and create jobs.

Although the President’s commitment towards several infrastructure and energy projects in the coming years is encouraging, there is a need to move from discussion to swift action. According to the latest SAVCA Private Equity survey, investments in infrastructure and real estate represented over 41.7% of the cost of total investments in 2020. The industry has the potential to make a significant impact if government takes the necessary steps to ensure challenges are addressed. SAVCA also applauds the president’s commitment to implementing the recommendations from the State Capture Commission, which includes among others the strengthening of law enforcement agencies and the implementation of new anti-corruption practices in the public service. These efforts will go a long way to rebuild investor confidence and spur economic growth.

The President also emphasised government’s role to create an enabling environment in which the private sector can thrive. The focus on unleashing the potential of business, and in particular supporting SMEs with initiatives such as reducing complex regulation that make it costly and difficult for SMEs to operate, the expanded criteria for the Employment Tax incentive, the new Bounce Back scheme and revising the critical skills list, are most welcomed.

Initiatives such as the start-up visa and remote working visa, will not only attract new investment to the country, but skills that will support these growing businesses to thrive.    

We are particularly happy to see dedicated capacity being created within the Presidency to reduce red tape. As the President said, the team will “also work with other departments and agencies to unblock specific obstacles to investment and business growth”.

While we still have a long way to go, SAVCA is encouraged by the President’s ongoing efforts at increasing investments into the country and his commitment to continue to support the vulnerable through the extension of the social relief grant. The measure of success however is going to be in the execution and delivering on the promises made. SAVCA offers its support and will continue to work with government to improve the overall investment landscape, providing scope for business to contribute meaningfully to SA’s growth, job creation targets and inequality.