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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 has a contingency plan for load shedding
2008-02-13


The University of the Free State (UFS) has put in place a contingency plan to ensure that there is minimal disruption to the normal academic operations of its Main Campus in Bloemfontein whenever load shedding occurs.

The plan includes alternative arrangements for certain lectures that fall within the load-shedding schedule provided by Centlec, the emergency power generation for certain lecture halls and buildings, as well as the functioning of the UFS Sasol Library. This is in addition to emergency power equipment that has already been ordered for the larger lecture-hall complexes.

Fortunately, the Qwaqwa Campus has adequate emergency power generation capacity. The situation on the Vista Campus in Bloemfontein is being monitored, but the same guidelines will apply as on the Main Campus.

On the Main Campus in Bloemfontein the following alternative arrangements regarding the timetable for evening classes will come into effect when load shedding occurs:

  • An alternative module and venue timetable has been compiled so that classes that cannot take place on weekdays as a result of load shedding can be accommodated on Fridays and Saturdays.
  • Classes that are presented in the timeslot 18:10 to 21:00 on Thursdays are alternatively accommodated in the same venues at the same times on a Friday.
  • Classes that take place in the timeslot 20:10 to 22:00 on Wednesdays are alternatively accommodated in the timeslot 08:10 to 12:00 on Saturdays, in a few cases in different venues from those scheduled initially.
  • After consultation with students, lecturers will decide whether the alternative timetable will apply when load shedding does indeed occur or whether the alternative timetable will be a permanent arrangement.

Some other steps that have been taken regarding the functioning of lecture halls include:

  • The design and installation of emergency power equipment in all the large lecture-hall complexes within the next few months. This includes the Examination Centre, Flippie Groenewoud Building, the Stabilis and Genmin lecture halls.
  • The ordering of a larger generator for the Agriculture Building to simultaneously provide essential research equipment such as refrigerators, ovens and glasshouses with emergency power.
  • An investigation into the optimal utilisation of present emergency power installations.
    The purchasing of loose standing equipment such as battery lights, uninterruptible power supplies, loose-standing generators, etc.

The UFS Sasol Library will continue as normal as far as possible though there may be some minor changes as a result of load shedding. The library has an emergency generator that will be used in the event of load shedding to allow students and other users to exit the library. If load shedding occurs during daylight hours, the library will remain open with limited services. If the load shedding occurs after 6 pm (18:00), all users will be allowed to exit and the library will remain closed until the next day.

A comprehensive investigation into the university’s preparedness for and management of long term power interruptions is also receiving attention.

More information on the contingency plan for load shedding can be obtained from the UFS website at www.ufs.ac.za/loadshedding.

Media Release
Issued by: Lacea Loader
Assistant Director: Media Liaison
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl.stg@ufs.ac.za
13 February 2008


 

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