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Three big threats to SA economy - chamber

Johannesburg - Leadership and expertise is now critical to arrest further deterioration of the South African economy, according the AHi.

The business chamber, therefore, urge government to take the necessary steps, in collaboration with the private sector, to deal effectively with what it regards as the three biggest threats to the economy in 2015.

These are a sustainable electricity supply, quality and efficient service delivery by local governments and despair amongst millions of unemployed people.

"Regarding Eskom’s’ ability to supply electricity, there is sufficient expertise in South Africa to avoid further problems at power stations," the AHi said in a statement.

"There really is no excuse for the state of affairs at Eskom. However, prolonged power disruptions do have a very negative impact on small businesses who do not have generators, and that do not have the cash flow to afford the expenses that it brings."

The AHi, therefore, appeals to Eskom to examine all possibilities and to allow private institutions that have the ability to generate power to feed access power back into the national grid.

Service delivery

"Service delivery at municipal level is increasingly marked by infighting between councilors and officials, sabotage of essential services and lawlessness," said the AHi.

"It is especially the business sector and civil society that suffers because of the relentlessness of warring factions to resolve their personal issues in the interest of quality and efficient service delivery."

The state of affairs in certain municipalities where important services cannot be delivered because of internal conflict is totally unacceptable to the AHi and it, therefore, appeals to government to intervene.

Internal conflict

The AHi also foresees that there will be an upsurge of internal conflict in anticipation of the upcoming local elections.

"Contingency plans must be drawn up by government to ensure service delivery at all times. The question, however, is whether the department of co-operative governance and traditional affairs (Cogta) and the SA Local Government Association (Salga) have such plans in place," said the AHi.

"Despair, especially among unemployed young people, are on the increase and the AHi appeals to government and the business sector to address purposefully the factors that undermine job creation."

The AHi believes the greatest threat to any economy is civil anarchy that is caused by a sense of hopelessness. The AHi asks that labour laws be revised to make it easier to employ young people.

"The department of trade and industry, the ministry for small business and the various business chambers must also consider establishing partnerships with organised business that is aimed at entrepreneurial training of and skills transfer to young people," said the AHi.
 
It is of the opinion there is enough expertise and empathy in South Africa to deal effectively with these three critical challenges.

"This, however, requires leadership, acumen that crosses the boundaries of the here and now and political will to identify the very best South Africans to come up with sustainable and innovative solutions to avoid a possible economic meltdown," it said.

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