Experts from different reputable bodies have made interesting suggestions on how economic stagnation can be tackled. On its part, the AHi, as the business chamber, has added sound leadership and expertise to the list.
In a statement, the AHi singles out the following as the biggest threats which the economy will likely face in 2015: a sustainable electricity supply, quality and efficient service delivery by local governments and despair amongst millions of unemployed people.
Regarding the dismal state of power supply, the AHi says: “There is really 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 suggests that Eskom can tackle the situation by allowing private institutions that have the ability to generate power to feed access power back into the national grid.
On service delivery, the organisation is gravely concerned that infighting between councillors and officials compromises quality. It fears that the situation could get worse with the municipal elections approaching.
As part of a long-term solution, AHi believes government must draw up contingency plans to ensure service delivery at all times. However it wonders whether the department of co-operative governance and traditional affairs (Cogta) and the SA Local Government Association (Salga) are well equipped.