Ramaphosa's Business-Friendly SONA Welcomed, But Concerns Remain Over Implementation

LOCAL NEWS

• Overall, Ramaphosa’s SONA speech has been met with mixed responses, but the business-friendly focus on cutting red tape and boosting reforms in labour and energy sectors has been welcomed alongside the 100-day deadline to agree on a roadmap.
  • As expected, the SRD grant as extended by a year instead of a BIG and reiterated the importance of the private sector.
  • He approved amendments to the electricity regulation act to boost competition and noted several new energy projects in the pipeline and a hydrogen power roadmap for renewables – noting that Eskom unbundling would be over by September 2022.
  • He also promised to take action against implicated ministers and held the cabinet responsible for the July riots.
• On prior promises from 2021, Ramaphosa has completed three, made progress on 10, hit challenges on 8 and 5 have missed deadlines – making for a relatively poor implementation track record.
  • However, Ramaphosa sounded relatively more determined this time around on the reform front and will be pressed by the upcoming elective conference in December to make strides forward
• SA’s largest crude refinery Sapref halts its operations on Thursday for an indefinite period while a decision is made about the future of the plant.
  • Sapref (Shell & BP SA petroleum Refineries) is responsible for 35% of SA’s refinery capacity and says it will implement a spending freeze and hold back operations by end-March – BusinessDay