The Democratic Alliance (DA) stated on Wednesday that while its Ministers are delivering growth and jobs in their respective portfolios, it continues to push the African National Congress (ANC) to urgently embrace the economic reforms South Africa desperately needs.

Ahead of the State of the Nation Address (SoNA), to be delivered on Thursday by President Cyril Ramaphosa, DA leader John Steenhuisen warned that unless the Government of National Unity (GNU) urgently implements policies that drive economic growth and enable job creation, South Africa will fail.

He said there was an alarming lack of urgency in the ANC.

“We have pushed the ANC to implement pro-growth, pro-jobs reforms through the Medium Term Development Plan process, and we have pushed the President to announce such reforms during his SoNA,” Steenhuisen said.

EXPROPRIATION ACT

Meanwhile, Steenhuisen said the party would continue to use GNU structures to mount its opposition to the Expropriation Act, from within government.

This after US President Donald Trump threatened to withdraw aid to South Africa owing to his view that the recently enacted Expropriation Act was leading to the confiscation of land.

Steenhuisen said in response, on Monday, that while there were concerns around the Act, it was not true that it allowed land to be seized arbitrarily by the State as claimed by lobbyists.

“…and it does require fair compensation for legitimate expropriations in terms of Section 25 of the Constitution. It is unfortunate that individuals have sought to portray this Act as an amendment to Section 25 of the Constitution to allow for Expropriation Without Compensation,” he said.

The DA lent its support to the GNU’s attempt to engage with Trump to clarify the situation, describing the US’s partnership with South Africa as valuable, particularly as US funding assists with crucial HIV/Aids treatment and support services and humanitarian and environmental programmes.

“It would be a tragedy if this funding were terminated because of a misunderstanding of the facts. Property rights are foundational to the success of our economy and the DA will always fight to ensure they are fully protected. We successfully opposed any change to Section 25 of the Constitution, which protects property rights, and we will continue to work to ensure the Expropriation Amendment Act is constitutionally sound in every respect,” Steenhuisen had said.

Now, Steenhuisen said the Expropriation Act must go back to Parliament.

He said the protection of private property rights was the cornerstone of any economy, and that the DA had always supported this and fought hard against any amendment to Section 25 of the Constitution, since 2018. 

“The DA is strongly of the opinion that the Act is unconstitutional and our view has not changed,” he said on Wednesday.

He said the party would approach the courts, arguing that this Act was indeed “procedurally and substantively unconstitutional”.

“As long as Dean Macpherson, or any other DA representative, is Minister of Public Works and Infrastructure, we will be able to mount protection for South Africans through the Minister responsible for the Act’s implementation. However, that situation cannot be guaranteed forever. It provides short-term relief, but broader solutions are needed,” he explained.

DEBT MANAGEMENT AND ECONOMIC REFORMS

Steenhuisen said the GNU needed to commit to a credible plan to reduce government debt and stick it to.

“End bailouts to failing State-owned enterprises (SOEs) and begin the phased privatisation of non-essential SOEs, redirecting funds to critical economic infrastructure and service delivery,” he suggested.

He added that government must also implement a strictly managed spending review across departments, to ensure measurable outcomes for allocated budgets, and to eliminate programmes that are duplicated or lack impact.

Steenhuisen said South Africa cannot tax or borrow its way to a better future, and said government must fast-track reforms in network industries, in particular energy, logistics and telecoms, to enhance efficiency and private-sector participation, and the DA leader specifically mentioned the concessioning of Cape Town and Richards Bay ports.

He said red tape must be cut along with compliance burdens that make South Africa difficult to do business with.

He also suggested removing tariffs on all goods not produced in South Africa and reviewing all master plans to remove obstacles to growth and jobs.

CORRUPTION

He noted that growth depends on a public sector that delivers services efficiently without corruption, saying the GNU must strengthen procurement transparency and ensure that public procurement is decentralised to curb corruption.

“The new Public Procurement Act includes worrying provisions that will entrench opportunities for corruption by centralising power in a single point. The President needs to ensure steps are taken to secure value for money in the public procurement process,” he said.

Steenhuisen also pointed to a need to embrace technology, and implement digital transformation across government services to reduce bureaucratic inefficiencies and opportunities for corruption and costs.

“…but the benefits of digital transformation across all government services go beyond only that: this would ensure universal access to important documents like ID cards; financial inclusion by being able to open bank accounts; elimination of fraudulent payments at places like SASSA and NSFAS,” he explained.

He added that this would also help combat identity theft and fraud, with improved tax collection, more secure borders, and less paperwork, which consumes unnecessary time and increases the risk of loss and fraud.

“This is a crucial need, and one we are deeply committed to, as can be seen by the digital transformation led by Leon Schreiber in Home Affairs,” he said.

ENERGY SECURITY

Steenhuisen said the period without loadshedding had been stabilising for the country’s economy, noting that loadshedding’s recent return had jeopardised the recent economic feat and emphasised the urgent need for reforms to ensure the entire energy sector functioned to drive growth.

“That means expediting private-sector participation in power generation and transmission to break Eskom’s monopoly. It also means ensuring a clear timeline for both the vertical and horizontal unbundling of Eskom and removal of regulatory barriers to a competitive energy market. At the same time, we need urgently to accelerate infrastructure investment with public-private partnerships in transport, water, and logistics – all with specific timelines,” he explained.

LEGISLATION

He pointed out that as a starting point, the ANC should reevaluate its approach towards redressing the historical injustices of the past, highlighting that the current approach has favoured the “politically connected” at the expense of the vast majority of South Africans, who he said found themselves languishing in dire poverty.

He said this required an alternative mode of redress which moved away from direct ownership solely and allowed businesses to invest in the communities they operated in.

Steenhuisen noted that the GNU needed to reform its labour laws to make it easier to hire young, unskilled, and semi-skilled workers.

“…one way to achieve this is through reducing the power of bargaining councils to extend wage agreements to small businesses that are not even in the room when these decisions are made.

“Small businesses present us with an excellent opportunity to create labour absorptive economic growth and we need to do everything in our power to enable them to do so,” he highlighted.

NHI

The DA said it was keen to work with the President and the Ministerial Advisory Committee to put in place alternatives to the National Health Insurance (NHI), as it reached an agreement with the ANC to ensure medical aids were not under threat under the NHI.

The DA has previously argued strongly against the NHI.

In the last few months the DA has submitted detailed programmes, alternatives and costed various ways to implement universal access to basic healthcare for all South Africans, regardless of their income status or geographic area.