Durban Chamber reviews Ramaphosa's State of the Nation Address: optimism tempered by concerns

The Durban Chamber of Commerce and Industry NPC has expressed cautious optimism regarding President Cyril Ramaphosa's State of the Nation Address (SONA). While the address laid out commendable promises aimed at stabilising South Africa’s economy, the Chamber voiced concerns about a predominant focus on immediate crisis responses over long-term, proactive solutions.

The establishment of the Presidential eThekwini Working Group (PeWG) has garnered attention, with the Chamber acknowledging efforts to bolster business confidence and tackle pressing economic challenges in Durban. "We have observed this working group making significant strides towards addressing critical issues," Chamber CEO Palesa Phili said in a statement. The collaboration between government and the private sector has yielded notable improvements in both confidence levels and service delivery, Phili said, showcasing the positive outcomes that arise from united efforts aimed at nurturing business interests.

Nevertheless, the Chamber urged that sustaining and enhancing this business confidence is crucial. It said that while investor confidence has risen previously, the true measure of success lies in the ability to maintain that trust over the long haul.

Another significant concern raised during the SONA was the impact of illegal and cheap goods flooding the market. The Chamber recognised the presidency’s commitment to combatting this issue, but expressed frustration at the delayed governmental response and lack of clear timelines for implementation. Many local manufacturers, particularly small and medium-sized enterprises (SMMEs), have suffered considerable losses as a result. "We need to see mediation taking place immediately," Phili said, advocating for strategic development to position Durban as a manufacturing hub, which is essential for fostering a self-reliant economy capable of driving future growth.

Water shortages were addressed in the president's address, with the government earmarking R156 billion over the next three years for water and sanitation infrastructure. The Chamber welcomed this initiative, stressing the acute need for sustainable planning and maintenance to avert further operational disruptions faced by businesses compelled to incur the costs of downtime and alternative water supplies.

Moreover, the Chamber expressed disappointment over the lack of context surrounding the African Growth and Opportunity Act (AGOA) during the SONA. Despite acknowledging the president's commitment to South Africa's sovereignty and the African Continental Free Trade Area, clarity on AGOA is pivotal for understanding the benefits and implications for South Africa’s trade landscape.

The Chamber said the SONA pointed towards progress and ambitious strategies aimed at addressing longstanding economic challenges. However, Phili added that true advancement will depend heavily on actionable implementation and a coherent alignment between the SONA and the forthcoming Budget to ensure effective delivery of the promised initiatives.

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