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21 July 2021 | Story Prof Philippe Burger | Photo Sonia Small (Kaleidoscope Studios)
Prof Philippe Burger is Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development at the University of the Free State.

Government needs to see the private sector as a true partner, whose expertise and capital can leverage its plans

Opinion article by Prof Philippe Burger, Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development, University of the Free State

Many South Africans watched in disbelief last week as KwaZulu-Natal and Gauteng descended into looting, chaos, and destruction after Jacob Zuma’s imprisonment. Though probably instigated by disgruntled pro-Zuma supporters, it is clear that the protests very quickly spun out of control.

In newspapers, the question was repeatedly asked: did we see the hungry poor looting for food, or the opportunistic middle-class turning up in cars and bakkies to grab big-screen TVs and fridges? While images and videos clearly show that the latter were present in large numbers, the sight of other people – including gogos – ransacking supermarkets and running off on foot with loaves of bread and bags of maize meal, point to the former. In short, if people had jobs and hope that their lives would improve, I doubt we would have seen such anarchy.

Only a matter of time before protests and unrest occurred

With official unemployment above 30% and the broad unemployment rate – which includes discouraged work-seekers – in excess of 40%, it was only a matter of time before protests and unrest occurred. Zuma’s imprisonment was surely incidental. If it hadn’t been that, something else would have triggered the chaos.

COVID-19 also aggravated the situation, with 1,4 million people losing their jobs as a result of lockdown measures. In addition, the R350 COVID-relief grant expired at the end of April, leaving many with less food on the table.

A number of people argue that, in light of what has happened, we should bring back the relief grant; government may not have much choice now, given the lingering effect of 16 months of COVID restrictions on levels of unemployment and poverty. It will simply have to rearrange its budget to do so. However, we can’t stop at grants.

Even though a grant puts a bit of food in your stomach, it does not give you hope that the future will look better than today. It’s that bleak-looking future, that sense of nothing to lose, that fuels the looting and gives unsavoury politicians leverage for their selfish interests. Contrast this behaviour with that of taxi drivers, who came out to protect malls and chase away looters. They did so because they have something to lose, a stake in the economy to protect.

Every South African has a stake in the economy

We need to ensure that every South African has a stake in the economy. That way, people will have a sense of belonging, they will have options and agency, and they will have resources to improve their lives. They will have hope that the future will look better than the present. A person with a stake in the system is unlikely to break that system. 

We therefore need to seriously reconsider our policies, speed up much-needed change, and start building a believable message of hope – hope stemming from real concern for the plight of the poor, and serious implementation of policy. To help the poor, we need to create jobs, and for that we need investment.

Analysis of economic data shows that for every percentage point rise in private investment as percentage of GDP, we lift GDP growth by a third of a percentage point. And, on average, for every percentage point that GDP grows, employment increases by 1%. In recent years, private investment has averaged a mere 12% of GDP. If we can lift it to 15%, or even to 18%, GDP can grow by an extra one or two percentage points. It might not sound much, but after a decade or two it makes a big difference.

However, for this to happen, the government will have to see the private sector as a true partner whose expertise and capital can leverage the state’s plans. With such an approach, for instance, it would not be necessary for government to own and run an airline – a private operator will fill the gap in the market with its own capital, saving government billions of rands. And the government could long ago have let the private sector play a key role in the generation of electricity, instead of resisting change and only belatedly agreeing to lift the cap on private generation capacity from 1 MW to 100 MW.

Build communities where people escape poverty and have hope

The type and location of investment is also important. Data from the Council for Scientific and Industrial Research shows that SA’s urban population will have increased to between 50 million and 52 million by 2035. This is an increase of 12 million to 14 million compared to 2018.

We must use the opportunity to build green industries. It will save money and build a better environment. In short, as a growth strategy, we need a green, urban-driven investment strategy that caters for SA’s burgeoning urban population.

That way, we can build communities where people have a stake in the economy, where they have jobs and businesses, escape poverty, and have hope that their future and that of their children will improve.

• The article was first published in Business Day


News Archive

UFS on energy-saving mode
2009-09-15

The University of the Free State (UFS) has undertaken several measures to reduce energy consumption on the Main Campus in Bloemfontein.

“Part of Eskom’s strategy is that all the main universities must reduce their electricity consumption. Because the university is the second biggest user of electricity in Bloemfontein we have to cut our consumption according to the new energy policy,” said Prof. Niel Viljoen, Chief Director of Operations at the UFS.

“Electricity is also expensive and if we look at global warming and everybody’s responsibility, I think we all have a moral obligation to save energy,” said Prof. Viljoen.

“The energy crisis of January 2008 and beyond, with its load-shedding limitations, was a major driver for the government to introduce the Power Conservation Scheme,” said Mr Anton Calitz, the UFS’s electrical engineer.

The measures put in place by the UFS include amongst others:

The introduction of a solar water-heating system in the residences, which is a first of its kind in Bloemfontein.
An investigation is also being launched into alternatives and the effective heating of rooms in the residences.

Feasibility studies are currently being conducted to determine whether energy saving can be achieved with radiation panels.

Energy-saving lights have been installed in the following buildings: the Architecture Building, Genmin Lectorium, Geology lecture halls, Winkie Direko Building, George du Toit Building, Sasol Library, Francois Retief Building, as well as in the residences. This measure has resulted in massive energy saving.

Energy meters for the Library, Computer Laboratory Building, François Retief Building and Steyn Substation are being planned as the first phase.

Real-time metering will result in every UFS computer user being aware of power consumption on the campus.

New lift motors and control systems that reduce energy consumption have been installed at the Agriculture and the George du Toit Buildings.

In the Computer Laboratory Building the temperature adjusting point for the venues is set at 22 °C and, in the case of new projects, green guidelines are applied.

It is expected that the government and local authorities will bring more pressure to bear on the UFS to save energy. Applications for increased capacity will possibly be linked to energy-saving targets.

This trend will continue until 2014 when additional power stations will be put into operation.

“Our aim is to save 10% on energy consumption,” said Prof. Viljoen.

“Heavy financial penalties will be imposed if a 10% saving is not achieved,” added Mr Calitz.

On average, our energy consumption per day this year is 128,964 kWh as compared to last year’s 119,752 kWh.

Media Release
Issued by: Mangaliso Radebe
Assistant Director: Media Liaison
Tel: 051 401 2828
Cell: 078 460 3320
E-mail: radebemt.stg@ufs.ac.za  
14 September 2009

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