Business leaders, who say there is a strong possibility of a coalition government being formed after this month’s general elections, are concerned about the impact of this type of governance on the country’s economy.
The national general elections will be held on May 29.
On Thursday business leaders were speaking at a panel discussion on the elections hosted by the Graduate School of Business and Leadership at the University of KwaZulu-Natal (UKZN).
Ebrahim Patel, founder and past president for the Minara Chamber of Commerce, said in 2024 there was uncertainty globally and nationally.
“The year 2024 is election year as half of the world’s countries will be going to the polls. We conducted our survey among our members and we found that larger businesses have put their investment plans on hold out of the fear of these coalition governments.
“There is fear that there could be a repeat of the 2021 July unrest that has affected businesses. This is the first election year where there is a high possibility for a coalition government.”
Patel added that with the possibility of a coalition government there was concern about differing views among political parties.
“The worry with a coalition government is which political party will be willing to give up and compromise on their ideologies? The bigger problem is what consequences will that have for businesses and people in the country?
“One of the most crucial things that we need to see from the government is to fix the railway system so we can get goods quicker and faster to their destination. It will add 2% to our GDP.
Every country that has a smooth railway system has stimulated their GDP.”
Melanie Veness, CEO of the Pietermaritzburg and Midlands Chamber of Commerce, said it was no secret what the economy required for it to grow.
“Business needs a safe and secure environment and that means staff are safe when they are performing their duties. We need from the government that when we invest, these investments are safe and solid. We need a secure supply of electricity and water at a reasonable price.”
Veness said it was crucial that the logistics sector was run efficiently, now and after the elections.
“We need to be in a situation where our trucks are not going to be burnt or attacked and we need a government that will ensure that our exports will leave our country within a reasonable time. Our imports must also reach us in a reasonable time.”
Veness added that corruption needed to be rooted out for the economy to grow.
“I was in Rwanda recently and it was amazing for me to see the amount of progress that was made in the country since the Rwandan genocide. It is clean, it has service delivery and unemployment has decreased significantly.
“One of the guides told me that one of the things that made a huge difference was zero tolerance for corruption after the genocide. This approach gave people hope.”
Zakhele Ndlovu, UKZN political science lecturer and political analyst, said he expected the ANC to lose support in the upcoming elections.
“How much support they will lose remains to be seen. But I suspect they might be down to 50% or just below.
“The issue we face in South Africa is we find that people vote on popularity, loyalty based on the fact that the ANC liberated us in 1994, or they vote for the IFP as Prince Mangosuthu Buthelezi is still the face of the party. We find that the best candidate may not necessarily be voted for.”
Ndlovu added that there was a high possibility of a coalition government.
“Despite the issues of the MKP and ANC, I still feel that the ANC and MKP will form a coalition in KZN. I do feel that (former president Jacob) Zuma wants this as he wants to bargain with President Ramaphosa.
“It’s businesses and people of South Africa that hold parties accountable and ensure a better future.”
Neville Matjie, adviser to the KZN premier and former CEO of Trade and Investment KZN, said the election was about the possibility of policy changes that could impact businesses.
“The unknown can cause uneasiness. New regulations, tax reforms and trade agreements are factors that negatively impact investment perception.
“Businesses must advocate for policies that stimulate economic growth and most importantly, everyone must vote. If not, you can’t criticise.
The Mercury