2023 State of the Nation
State of the Nation
Last thursday’s State of the Nation Address by President
Cyril Ramaphosa brought on a feeling of déjà vu, as the Economic Freedom
Fighters (EFF) once again disrupted proceedings, making it impossible for Mr.
Ramaphosa to deliver his speech until they were forcibly ejected. The déjà vu continued with Mr. Ramaphosa’s
speech, a familiar set of regretful-sounding admissions of challenges,
including announcements of efforts to solve the country’s polycrisis involving
much centralisation, combined with sonorous pronouncements on progress that is
often hard to discern. The public response has been muted, as South Africans
have heard it all before and will curb their enthusiasm until they see actual
delivery on promises.
The President’s speech confirms that the current
administration is fundamentally struggling to realise the true state of affairs
on the ground. It is also battling to conceptualise the kinds of reforms that
would reverse the country’s current low-growth, record-high unemployment
trajectory.
State of disaster
As noted in the previous issue of the Executive Brief, arguably
the greatest risk currently weighing on South Africa is the lack of reliable
electricity supply. To try and resolve this, Mr. Ramaphosa has, as was earlier
suggested, declared a state of disaster with immediate effect. Among other
things, it is meant to allow the government to support businesses, exempt
critical infrastructure from loadshedding, accelerate energy projects, and
limit regulatory requirements.
However, acording to those in the know, none of these
measures would seem to require the extraordinary powers conferred by a state of
disaster. Additionally, Mr. Ramaphosa will appoint a Minister of Electricity,
to be housed in the Presidency. This move will continue a trend that has come
to characterise the Ramaphosa incumbency — the centralisation of power in the
Presidency. The risk of abuse of tender processes and preferential procurement
will inevitably increase with this additional power for the government.
Financing the various tools necessary to implement a state of disaster will put
additional pressure on the Budget, the speech of which will be delivered later
this month by the Minister of Finance, Enoch Godongwana.
The Minister of Electricity will ‘assume full responsibility
for… all aspects of the electricity crisis response’. But he or she will have
to work with Pravin Gordhan, the Minister of Public Enterprises and shareholder
representative of Eskom, and Gwede Mantashe, the Minister of Mineral Resources
and Energy. The likeliest result is a logjam, as it is doubtful that this
energy triumvirate will make more progress in solving the problem than the
previous duo could.
~ Source: The Centre for Risk Analysis
Crime: Kidnap-for-Ransom on the increase
Last month News24 reported that a 50-year-old Mozambican
national had been arrested in connection with multiple kidnapping cases. It is
alleged kidnapping cases were reported in South Africa and Mozambique. According
to a police report, there have been multiple cases where the suspect was
identified as the kingpin operating a transnational kidnapping-for-ransom ring
that had been operating since 2018. The report also indicated information was
received from a confidential source about the possible location of the suspect
who was moving between Gauteng, Cape Town and Mozambique.
On 30 December 2022, local media reported on the events
surrounding the kidnapping of two foreign nationals in Mowbray, Cape Town. On
26 December, the body of one of the victims was discovered, while the other
captive was rescued two days later in Khayelitsha township. Three men were
arrested during the rescue mission. These occurrences demonstrate the danger
posed by crime in South Africa and the importance of taking prudent measures to
protect oneself.
Police statistics have shown that crime has increased in
recent months, especially kidnappings in the Western Cape province. Between
July and September 2022, there were more than 240 reported kidnappings, which
is an increase of 11.7% compared to the same period in 2021.
Previously, kidnap-for-ransom mainly affected members of
certain ethnic communities, but more recently, wealthy local businesspeople and
their dependents have been targeted. Criminals have been known to use excessive
force if victims resist, but most of the time, victims are released after
paying a ransom. Most urban crimes are committed by organized crime groups and
street gangs.
International risk agencies continue to predict that
violent crime, including kidnappings, will continue to rise due to the poor
socio-economic conditions, including high poverty, inequality, corruption, and
judicial inefficiency. Inflation, unemployment, and firearms proliferation will
also contribute to the high crime rate.
~ Source: International SOS, News24
Inspiration
We waited a few weeks to share this inspirational story with
you. Was your New Year’s resolution to run a marathon? How is the training
going, still on traget? On December 31, 2022, Gary McKee celebrated the
completion of his incredible quest to run a marathon each day for an
entire year. A father of three from Cleator Moor, England, McKee had worn
out no less than 22 pairs of trainers in the course of his 9,563-mile journey,
which was undertaken to raise money for Macmillan Cancer Support and West
Cumbria Hospice at Home. On his final run, a crowd of supporters cheered him on
and fireworks went off, making it a moment that McKee will never forget. His
remarkable feat of physical and mental endurance has raised £1 million for the
two charities and has inspired the local community to come together and support
his challenge.
~ Source: BBC
