JULY 2020 VOLUME 3 Thabo Mbeki Foundation

THE OFFICIAL MONTHLY NEWSLETTER OF THABO MBEKI FOUNDATION

A SMALL MATTER OF SYNCHRONISED ELECTIONS? Inside View

LETTER FROM THE PATRON

VOICES ON POST-COVID-19 ECONOMY President Thabo Mbeki, Patron of the TMF

TMPL - BUY A BRICK The ANC issued a statement after the June 2020 meeting of its National Executive Committee (NEC) which said, among others: CAMPAIGN

“The NEC supports the initiative by Officials and the NWC, to GET INVOLVED engage in the development of proposals on a synchronized national, provincial and local government elections to enable

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wrong with the movement better coordination and Two of the important statements contained in the itself during the years it has implementation of policies Freedom Charter say: served as our country’s across spheres of governing party. For instance government.” the Resolution on “No government can justly Organisational Renewal it claim authority unless it is To confirm and explain this adopted at its December 2017 position ANC Secretary based on the will of the 54th National Conference inter General Ace Magashule said: People”; and, “The People alia said that there had Shall Govern”! developed among the people: "Indeed, we are calling for During the years preceding synchronised elections, one “A loss of confidence in the the negotiations which single elections (sic) by all ANC because of social started in 1990, many spheres and we are saying supporters of the National distance, corruption, that obviously it will need the Party questioned us about the nepotism, arrogance, elitism, amendment of the meaning of these assertions. factionalism, manipulating Constitution and if we have organisational principles, to amend the Constitution, They insisted that they abusing state power, putting we will engage other parties." understood that when we self interest above the people.

said ‘the people shall govern’, Even the strongest ANC Indeed, the Secretary General in fact we meant ‘the ANC supporters agree that the was correct when he said the shall govern’! “sins of incumbency” are new proposed arrangement deeply entrenched.” to hold the national, Of course we explained to Provincial and local elections them, repeatedly, that the The Conference therefore on the same day would pursuit of the objective to resolved that it was imperative require a Constitutional ensure that the people shall that the ANC should go amendment. govern was fundamental to through a process of renewal,

the very nature of the ANC as saying: This immediately suggests a revolutionary democratic that this is an important movement. It was a matter of “Organisational renewal matter in terms of our strategic and not tactical governance processes. therefore is an absolute and importance. urgent priority, and we may

Naturally, it will be important go as far as to say, to the Accordingly as we entered for the ANC leadership to survival of our great into the CODESA and later explain not only to its movement.” negotiations, including members but to the country the post-1994 Constitutional as a whole as to why it is It is obvious that the Assembly, the ANC constantly necessary to make the degeneration of the ANC as sought to help elaborate a proposed change in our characterised at the 54th Constitution which would electoral processes. National Conference meant, best enable the people to among other things, that over govern! Here we will try to examine time, especially the leadership this matter from the had turned its back on the The ANC has openly admitted perspective of the historical fundamental and historic that many things have gone positions of the ANC. principles, values and

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Indeed after 1994 we constituted a South African Police Service (SAPS), with all the officers having civilian, non- military ranks, starting with the officer-in-charge of the Service, the National Commissioner, working as part of a Ministry and Department of Safety and Security!

Much of this changed in 2010 when the then ANC Administration restored the military ranks of the police and practices of the movement. function…Policing shall be changed the Ministry and subject to public scrutiny Department of Safety and This would include and open debate…” Security to the present Ministry understanding of, and loyalty and Department of Police. to the principle that the The ANC took this posture people shall govern, based on because the apartheid All this showed that the then the fundamental revolutionary regime had used the South ANC leadership either did not democratic principle to African Police (SAP) as its understand the reasoning develop the people to be their principal instrument of within the movement which own liberators. repression. The police had resulted in the change therefore stood out as an from the SAP to the SAPS etc, In 1992 the ANC adopted the enemy of the people. or viewed that reasoning with important document, ‘Ready Obviously during the contempt, and therefore to Govern’ (R2G) which democratic period the abruptly repositioned the police contained many of the basic formerly black oppressed as an instrument of repression, policy guidelines which would never believe that this led by Generals etc, like the informed many of the police force would genuinely apartheid SAP! The police Government programmes work for their safety and massacre of mineworkers at implemented from 1994. security. Marikana in 2012 cannot be separated from that 2010 Among the matters discussed Recognising the fact that remilitarisation of the police. in R2G is “A New Approach to nevertheless the new Policing”. That new approach democracy would require Recognising the importance of says: policing, the ANC understood this matter, the National that the police formation Development Plan (NDP) made “Policing shall be based on itself had to be transformed. a specific recommendation to community support and That is why, among other “demilitarise the police”. It says: participation…Policing things, R2G said that instead priorities shall be determined of a Police Force we should “The decision to demilitarise in consultation with the have a Police Service which, the police force, moving away in addition, must be non- communities they serve… from its history of brutality, was militarised. Policing shall be structured as a goal of transformation after a non-militarised service

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We mentioned R2G because 1994. The remilitarisation of and starts by saying: the police in recent years has this same document also deals with the issue of the electoral not garnered greater “The ANC believes that there system about which the June community respect for police is need for strong and 2020 meeting of the ANC NEC officers, nor has it secured took some decisions. effective local government to higher conviction rates. replace the racist, sexist, Certainly, a paramilitary As we return to this matter, we undemocratic, tribalist and police force does not augur also come back to the corrupt structures which well for a modern democracy important value and principle presently exist.” and a capable encapsulated in the developmental state. The perspective – the people shall The ANC document prepared Commission believes that the govern! for discussion in Theme police should be Committee 3 (Provincial and demilitarised…” In November 1996, the ANC Local Government) of the distributed a Discussion 1994-96 Constitutional Nothing has been done to Document entitled ‘The State Assembly said about local implement this important and Social Transformation’. government: recommendation! The document includes this important paragraph: “This is the level of The 2010 radical departure government charged with from the policies on policing “The empowerment of the the actual implementation contained in R2G exemplified people to participate in the of the RDP to ensure the exactly the abandonment process of governance, transformation of society. of ANC values and principles Hence, the task of local which the 54th ANC National expressed in the concepts of a government is to ensure that Conference condemned. people-centred society and people-driven processes of all residents have equal access, free of any form of Whereas these values and transformation, indicates the principles in R2G were the centrality of the concept of discrimination to basic outcome of an inclusive and popular and participatory services. Local government vigorous discussion within the democracy to the democratic shall contribute actively ANC and the broad movement's understanding of towards the redistribution of democratic movement, the the functioning of a resources on the basis of 2010 regression was an democratic state. It shows the race, class and gender.” imposition by the ANC commitment of this Given this strategic goal leadership in Government, movement to the visualised for local with no inclusive and proclamation in the Freedom government, it was inevitable systematic discussion by the Charter that 'The People Shall that the ANC would return to ANC as a whole. This also Govern!" It is the process of the showed the extent to which the important matter of how people becoming their own the ANC leadership in the the fundamental principle - governors.” Government National the people shall govern – should relate to this critical Executive had also developed R2G devotes a good deal of sphere of government! disrespect for the normal space to a discussion policy formation processes in specifically about ‘A New R2G made what might the ANC. System of Local Government’, appear to be a routine

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“Local government will bring government closer to the people…”

But to emphasise the importance of this reality, R2G went on to say:

“Local government will…actively involve (the people) in decision- making and planning processes which affect them… Democratic local government means more the people in decision making’. argued for an electoral than just having the right to system based on the vote in a local election. It also However we should note that principle of one-person-one- includes facilitating the creation the ANC document prepared vote and argued for a of a strong, independent civil for discussion in the proportional system of society, a high degree of Constitutional Assembly, to distribution of seats in our legislatures. Of interest it accountability, transparency which we have referred, already foresaw that there and the right to participate in reiterates a broad objective might be need to elaborate a decision-making processes enunciated in R2G concerning the objective that the people specific electoral system for which affect communities shall govern, and says: local government. between elections. Accordingly it said that “…The ANC confirms that “Participation and “proportional representation participatory democracy and accountability are meaningless may be supplemented by the mechanisms to give effect if people do not have access to other democratic electoral thereto are vital to democracy information. The public systems at local level.” disclosure of all information in South Africa, and that civil pertaining to any policy, society and its various Further elaborating this view, decision or activity for which any organisations have a crucial the 1995 ANC document local authority is responsible role in democratising and prepared for the should be guaranteed. In transforming South Africa. The Constitutional Assembly particular, meetings of the local final constitution, proposed what was government council and of supplemented where ultimately decided that: council sub-committees should necessary by national in principle be open to the legislation, should provide for “The electoral system for public.” the principles and local government must be appropriate/effective democratic. It may include When R2G discusses the national mechanisms of participatory both proportional and provincial (regional) democracy, as well as for representation as well as governments it does not include organs of civil society.” ward representation…” this specific matter of ‘involving As we would expect, R2G

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It is quite obvious that despite split its most senior cadres By the end of the first five the strategic posture the ANC between the national and years of democratic rule, the adopted towards local local spheres of government. ANC began to acknowledge government as a This was not done. the mistake it had made in constitutionally mandated terms of the deployment of third sphere of government, The other challenge is that its cadres among the three with its vital role in terms of the fiscal system in place spheres of government. The the ‘implementation of the since 1994 has allocated the result of this was that the RDP’, not enough was done smallest share of the national country started to see more by successive ANC revenues to local senior ANC cadres taking Administrations to empower government. This system has leading positions in local local government to carry out also required local government. its projected tasks. government to rely on its own possibilities to raise After Ambi Masondo lost the One of the problems additional revenues from race to become Premier of emerged from Day 1, as it each municipal area, to a Gauteng in 2000, he became were. It is clear that the greater extent than has been the ANC candidate for the democratic electoral process required of provincial position of Mayor of the since 1994 has resulted in a government. Johannesburg Metropolitan particular pattern of Municipality and was elected distribution of the ANC cadres The reality is that essentially to that position. Duma Nkosi with regard to the system of only the historically white was withdrawn from the governance in our country. areas of our country had the National Assembly where he possibility to generate chaired one of the Portfolio The reality is that the most meaningful revenue streams Committees and became senior cadres have been likely to be of some help with Mayor of the Ekurhuleni deployed to serve in the regard to helping provide the Metropolitan Municipality in principal executive, legislative municipal governments with 2001. and administrative positions some of the resources they in national government. The need. To the contrary it was Nevertheless it is true that as next layer of leadership in obvious that the historically the ANC we did not pursue terms of seniority has gone black areas, on their own, this process with the into the rather expansive would have virtually no necessary determination. The sphere of provincial possibility to host such longer this deficiency government, given that we revenue streams. persisted the greater the have nine provinces. damage that was done to Consistently therefore, for a Accordingly the real narrative local government. quarter-of-a-century, as the during the years of ANC we have deployed into democracy is that the As President of the Republic I local government the third deployment of the human addressed a session of the layer of our leadership corps. and financial resources to NCOP meeting in Limpopo local government by the ANC on 4 November, 2005. During The role the ANC projected was not consonant with its this address I mentioned for local government as early vision of the strategic role it some of the problems as in the R2G document assigned to local afflicting local government. suggested that it should have government. Among other things I said:

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“(The) unseemly scramble for reconstruction and through this audit political power in municipal development of our country, examination, to be seriously government appears to be focused on the achievement lacking with some driven by the desire to abuse of the goal of a better life for devastating consequences elected positions to lay all.” already evident in certain hands on the economic identified areas… resources that the local Many years after this speech, authorities have the the Auditor General issued his “The financial statements possibility to access. report about Municipal of a municipality tell the Finances covering the period story of how well a 2018 – 2019. The Report said: “This includes the power of municipality is managed… members of municipal The tale most often told in executive authorities to “Those that are required to local government, however, determine the outcomes of supervise and monitor is of municipalities crippled municipal tendering adherence to fiscal by debt and being unable to processes, regardless of the management laws are not pay for water and electricity; fact that the Municipal doing so or are not effective in inaccurate and lacklustre Finance Management Act the steps they have taken so revenue collection; expressly prohibits the far. The money allocated to expenditure that is involvement of councillors the delivery of certain unauthorised, irregular, and mayors in adjudicating specified outcomes is no fruitless and wasteful; and a bids for municipal tenders… longer in the bank and that high dependence on grants for which it was earmarked and assistance from “As I have already indicated, has not been delivered or national government.” we need "municipalities that achieved. There is not much serve all our people and have to go around, yet the right How bad the situation is in the requisite capacity to hands are not at the till… our municipalities is reflected in the fact that the 2018/19 provide regular and reliable AG’s Report says that: services to citizens as well as “When looking across being at the forefront of the the board and after carefully in two of our Provinces, reconstruction and analysing the financial Free State and North development of our country". statements we audited, we can safely conclude that local West, none (0) of the government does have municipalities got a clean “We cannot build such a audit; sufficient money and assets system of municipal in five of these Provinces, to fulfil most of the basic government by electing the Eastern Cape, needs and aspirations of its councillors driven by Gauteng, KZN, Limpopo citizens. But a lot of criminally selfish motives, and Northern Cape, only work is needed to make sure who have absolutely no one (1) in each of these interest in serving the people that this is realised. Proper got a clean audit; and who do not belong administration and in one of the Provinces, among those determined to superintendence over the Mpumalanga, two (2) occupy the forward trenches financial affairs of local municipalities got a clean in the difficult and complex government were not audit; and, struggle for the exercised and were found,

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in one of the Provinces, the In 2009 two scholars, Laurence committees are not Western Cape, thirteen (13) Piper and Roger Deacon, functioning properly, if at municipalities got a clean published a study of precisely all. They are dominated audit. the Ward Committees the ANC by councillors and spoke about. The study was political parties rather This amounts to 20 out of the entitled, ”Too dependent to than by the community 278 metropolitan, district and participate: ward committees as a whole, and neglected local municipalities in our and local democratisation in by the municipality. These country! South Africa.” are good reasons to be

sceptical about the Of course we all know the The authors wrote: democratic dividend that “devastating consequences” the ward committee the Auditor General wrote “Will participatory local about. They have been government structures help system is likely to yield communicated for many years deepen democracy in South anywhere in South Africa.” now by the persisting ‘service Africa? That is the proclaimed It is very clear that during delivery’ protests! purpose of the ward committee the last two decades we as system, the centrepiece of post- the ANC have failed to We must not forget what we apartheid local government realise the strategic said earlier about the principled reform, intended to facilitate objectives we set for local position the ANC had taken deliberative democratic decision government as originally that it was exactly in the sphere making." of local government that we detailed in the ‘Ready to would ensure that indeed the Having conducted a detailed Govern’ document. people govern! study of the Msunduzi Municipality in KZN, these Instead of the vibrant Indeed in its 2006 Local authors wrote: system of local Government Election Manifesto government which would the ANC said: “(There was) the possibility that be characterised and instead of deepening driven by popular participation, genuinely “Already we have put in place democracy, ward committees serving the interests of the democratic institutions like could conceivably either people and making a Ward Committees and succumb entirely to partisan party-political agendas, or - decisive contribution to instituted participatory which may be the same thing - the reconstruction and planning processes so that you be used to deflect and defuse development of our can have a say in local social popular discontent. As it turns country, we have an and economic development. out, on the available evidence, important sphere of Integrated Development Plans both alternatives proved to be government which in the (IDPs) must rest on widespread implausible. Disappointing their majority of cases has been consultation with the promoters and confounding and continues to be in crisis. community. We are their critics in equal measure, determined to strengthen Msunduzi ward committees are However it is also true that popular forums to build an just ineffectual… the thirty-year-old policy inclusive and truly of the ANC on local developmental system of local “In Msunduzi, between a third government has not government.” and a half of all ward

DEDICATED TO AFRICA'S RENAISSANCE PAGE 8 JULY 2020 VOLUME 3 changed. And indeed there is government, cannot start with As the country must move every reason to argue that there the decision taken by the ANC away from this position, the is absolutely no need to move NEC to “synchronise” the ANC NEC must review the away from the objectives to elections such that the national, decision it has taken to ensure that: provincial and local elections are “synchronise” the elections. held on the same day! local government, being ANC SG Ace Magashule was closest to the people, For one thing this would mean interviewed by the TV functions in such a manner that the ANC, and of course all channel Newsroom Africa other parties contesting the that it gives expression to the on 7 July, 2020. He was elections, would present to the principle that the people asked why the ANC wanted electorate one Election shall govern; to ‘synchronise’ the Manifesto. It is obvious that in this it functions efficiently to elections. He explained situation national issues would address the basic needs of that: take precedence, effectively the people, with no corrupt marginalising matters which diversion of public resources relate specifically to “it’s saving the costs, it’s for the enrichment of some local government, contrary to the saving the time”; individuals; and, requirement to respect the “we want a seamless it makes a significant particular role for this sphere of governance”, with each contribution to the task of government as visualised in R2G sphere elected at the the reconstruction and etc.! same time, and each for development of our country, five years; and, to help eradicate our colonial This would entrench processes if the Auditor General and apartheid legacy. according to which practically submitted the audits for local government would all the spheres of As the ANC pursues the not be given the special focus it government at the objective of renewal, as directed needs. Necessarily this would same time, this would by the 2017 54th National ‘legalise’ the counter-productive “assist us to understand neglect which the ANC itself has Conference, it must undertake a and run government visited on local government serious assessment of why it has properly, efficiently and for two decades! essentially failed to achieve its actually try and objectives with regard to Local understand how to Government. In this context the scholars we assist the local sphere.” have cited, Piper and Deacon, have written: That assessment must help the He went on to say that by ANC to answer the question – taking the decision to “As former President Thabo what should be done to ‘synchronise’ the elections, Mbeki (in Vanderhaegen, 2005) reconstruct the Local the ANC was admitted in the Local “creating a Government sphere of our , and Government Bargaining dialogue in society” governance system so that it Council Sector Summit, 'the “I’m sure other parties are reflects the vision and values primary focus has been on also actually saying it reflected in R2G, the national government as makes sense…EFF is Constitution and legislation? ''absolutely important'', saying let’s go for a single provincial government as election also, This process, leading to the "important" and local synchronised.” reconstruction of local government as ''well, it exists'''.

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He also explained that during It is important that the ANC NEC and the right to participate in the debate that had been going must recall the positions decision-making processes on in the ANC, some had explained in R2G properly to which affect communities argued in favour of the view guide itself, its membership, its between elections.” that the fact of staggered Allies and the rest of the elections has helped “to keep democratic movement about The Covid-19 pandemic has (the ANC) on its toes”, to what should be done to ensure further exposed the structural encourage it “to keep in that the masses of our people faults in our country and contact with the people”, and are served by an effective, society, the legacy of accessible and accountable not to “use people as voting colonialism and apartheid we system of local government. robots”. have not succeeded to eradicate during the quarter-of- However the view prevailed that In this context the ANC must a-century of democratic rule. pay due attention to such we should have ‘synchronised’ rather than staggered elections. Constitutional requirements Surely, what all of us have seen relating to local government in terms of its impact both in It is important to note that that it must: our teeming black urban none of the proposals advanced townships and in our rural during the debate mentioned “ensure the provision of villages could not but bring by the ANC SG engaged the services to communities in a forcefully to the fore the critical vital issue we have been sustainable manner…and, importance of the kind of local discussing of the strategic role “encourage the involvement government R2G spoke about! of local government as of communities and explained in R2G. community organisations in Accordingly, when we say that a the matters of local post-Covid-19 South Africa must It is obvious that the core of the government.” be radically different from winning argument about an what it was before the arrival of eminently political matter was To repeat what was said earlier the coronavirus on our shores, administrative rather than in this document, citing R2G: this must also mean that the political! It was also based on sphere of government what is clearly a strange “The ANC believes that there is closest to the people, local understanding of what is need for strong and effective government, must also be needed to achieve “seamless local government to replace the radically different from what it has been for two governance”! racist, sexist, undemocratic, tribalist and corrupt structures… decades! It is important that the ANC NEC must recall the positions “Local government will…actively explained in R2G properly to involve (the people) in decision- guide itself, its membership, its making and planning processes Allies and the rest of the which affect them… Democratic democratic movement about local government means more what should be done to ensure than just having the right to that the masses of our people vote in a local election. It also are served by an effective, includes facilitating the creation accessible and accountable of a strong, independent civil system of local government. society, a high degree of accountability, transparency

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TOURISM RECOVERY FOR SUSTAINABLE SOCIO- ECONOMIC DEVELOPMENT – QUO VADIS SA TOURISM?

an inclusive growing economy. While other economic sectors have been experiencing a shift from unskilled and semi-skilled labour to skilled labour, the tourism sector still offers ample opportunities for all three labour categories. Because of the high levels of youth unemployment in our country, many of whom lack requisite skills for the job market, some tourism subsectors have become a site for super- exploitation and unfair labour Mmamoloko Kubayi-Ngubane, Minister of Tourism practices. Shorn of these negative practices, the tourism sector’s The South African For the past 9 years, tourism capacity to create jobs can government, in its efforts to has been the fastest-growing significantly contribute to the combat the spread of Covid-19, economic sector in the creation of an inclusive declared a national state of world. In 2019, it accounted economy. disaster on the 15th of March for 10.3% of global GDP and 2020 and subsequently 330 million jobs or 10.4% of Furthermore, the barriers to entry imposed a national lockdown total employment. In South for entrepreneurs who want to which commenced on 26th Africa, the sector accounts participate in the tourism sector of the same month. The for 2.9% of GDP (8.6% are low in terms of financial and lockdown entailed closure of indirect), supports over skill set requirements. operations of non-essential 725,000 jobs (1.49 million Accordingly, we have seen a industries to prevent the indirect) and accounts for growing number of women and spread of the disease at the 8.2% of total investment youths who are entering the workplace, closure of activity. Perhaps most sector. international borders, importantly, inbound restriction of inter-provincial tourism generates R82.5 However, most of these new travel and restrictions on billion in direct foreign spend entrants often battle to escape people’s movements outside (R126.7 billion total), the survivalist status because they their homes. contributing an equivalent of are often weighed down by lack 9.2% of total national of access to finance for business The lockdown brought the exports. expansion; lack of funds to acquire the necessary training to tourism industry to a standstill. manage a growing business; and Except for the few In addition to the recent lack of access to the market accommodation facilities that rapid expansion, tourism’s especially for black-run were used for quarantine ability to absorb unskilled, businesses. Many of these purposes the rest of the semi-skilled and highly businesses have already been tourism activities were skilled people makes it an wiped out by the lockdown which inactive. important sector in creating

DEDICATED TO AFRICA'S RENAISSANCE PAGE 11 JULY 2020 VOLUME 3 has significantly setback the Italian experience, we During the month of April, transformation in the sector expected that the impact was some 50,000 businesses and by extension inclusivity. going to be devastating and we were closed and estimates advised businesses to start were that, without some The centrality of tourism in preparing for the worst. In kind of intervention, modern economic hindsight, no amount of between 550,000 – 600,000 development is such that it preparation could have jobs were going to be lost in has been included as one of adequately prepared businesses the tourism sector by the the tools for delivering the in the sector for the scale of end 2020. We, therefore, devastation that we are targets of Goals 8, 12 and 14 had to intervene in a witnessing today. of the sustainable manner that would ensure development goals (SDGs) that some areas the tourism The outbreak of Covid-19 has on inclusive and sustainable sector opened sooner rather effectively temporarily economic growth, than later. Thus, in collapsed the supply and sustainable consumption collaboration with the demand market of the tourism and production (SCP) and sector. According to the world private sector, we initiated a the sustainable use of process of developing travel & tourism council “…75 oceans and marine health and safety protocols million jobs are at risk, and resources, respectively. This for the various tourism sub- without swift action … one in four means that tourism is of sectors to prepare for new jobs around the world and vital importance in the fight reopening. The sector the 10.3% (US$8.9 trillion) against poverty, players became alive to the contribution to global GDP, will unemployment and fact that until such a time not be generated and the global inequality as well as the that an effective vaccine is economy will struggle to preservation of natural discovered the entire value recover”. resources. Hence, the Covid- chain of the tourism sector 19 pandemic poses a major The government’s adoption of will have to adjust their stumbling block the risk-adjusted strategy was a operations to the new for tourism but most recognition of the need to strike normal and assume more importantly for the a delicate balance between responsibility in protecting achievement SDGs. protecting livelihoods and employees and customers containing the spread of the from the virus. Before the declaration of the virus. Different economic sectors national state of disaster were placed at various levels of Because of the jointly and imposition of the risk, ranging from 1 to 5, developed health and national lockdown the depending on the perceived risk safety protocols, when the department of tourism that each sector poses. At the country moved to level 3 convened a meeting with time the strategy was adopted some of the tourism the tourism sector players, tourism activities were placed at subsectors were opened public and private, to level 1 which meant that tourism but a significant portion of discuss the likely impact of was only going to open when the the sector remained Covid-19 pandemic on virus had been completely inactive. tourism. Guided by what contained or upon the discovery was already happening of a vaccine. It is estimated that R54.2 around the world, especially billion in output may already have been lost

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between mid-March and the staff - The number of enterprises advice on health and safety end of May this year. The have furloughed staff since the measures, and support for sector now faces a potential April survey has stayed constant, commercial debt 75% revenue reduction in with a minor reduction in the repayment climbed higher 2020, putting a further R149.7 number of enterprises who have on the priority list. Most of billion in output, 438,000 jobs furloughed all staff. 34% of these businesses have been and R80.2 billion in foreign enterprises (34% also in March) appealing for the receipts at risk. have furloughed more than 50% government to provide of staff, and 16% of enterprises them with a financial relief To quantify the extent of the have furloughed all staff, package. impact of COVID-19, the compared to 18% in March. department in collaboration The performance of the with tourism business council Redundancy - The numbers of South African economy has of South Africa (TBCSA) and enterprises making most of been shambolic for the past International finance their staff redundant has decade. Faced with corporation (IFC), conducted growing social needs, it was stayed constant over the last surveys, the first one was unavoidable for our budget few weeks. 11% of enterprises administered in April and the deficit to widen and the (11% in March) have made second in June. The first debt to GDP to increase. more than 50% of staff survey had 1610 respondents This means that the redundant, and 5% of and the second, 1501. In both government finds itself enterprises (7% in March) surveys, 99% of responding fiscally constrained and made all staff redundant. firms are affected by COVID- therefore, does not have the 19. This means their cash flow What the surveys have also shown resources to provide was disrupted and is that the longer the financial support for the further complicated by the shutdown of the sector persists businesses that are in struggle to maintain the more businesses will permanently distress. liquidity needed to reimburse close. Inevitably, such a situation consumers for booking would create concentration at the Despite the constraints, the cancellations. top with few big firms that survive government put together the crisis making it difficult for the the Covid-19 Loan The results of the June survey sector to transform in terms of Guarantee Scheme worth R indicate that businesses ownership. 200 billion for businesses in have taken various measures distress, the Temporary to cope under the To deal with the booking Employer/Employee Relief circumstances which include cancellations, the most commonly Scheme (TERS), established the following amongst other applied mitigation measure by to provide financial relief to things: businesses is a deferment of employees during the bookings instead of cancellation Covid-19 through the UIF and providing refunds. Wage reduction – as it and other tax benefits. was during the April In a similar pattern to the results The Tourism Relief Fund survey, and it has from the April Survey, all which assisted 4 000 increased to include 55% businesses prioritized the need for businesses with R 50 000 of enterprises with more financial support for cash flow, each could only sustain than half their workforce financial support for recovery, most of the recipients for a on reduced wages. and tax relief. In the June survey, Furloughed expert advice on business recovery,

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month or two. TRF was made available are not To stimulate demand, an conceptualised for a scenario sufficient to meet the needs of aggressive marketing strategy in which the spread of the all the businesses in distress but will be adopted locally and virus would have been they will go a long way in internationally. Tourism has contained by the second protecting businesses from total become very competitive sector quarter of the year. Had it collapse. thus we will need to do a lot of been the case, the grant work to remind travellers that would have gone a long way In an epidemiological scenario South Africa is a truly inspiring in saving a larger proportion that assumes that we will be destination, combining over the worst by October and of the Small, Medium and powerful social justice history, November, the virus spread risk Micro Enterprises (SMMEs). breath-taking natural beauty, reduction will coincide with the and warm, welcoming people. peak season of the tourism Following a meeting with sector in South Africa. In freelance tourist guides in The second phase will preparation for this eventuality, which they expressed their emphasize managing the re- we have, after extensive plight, the department to put consultations with the opening of the sector and together the Tourist Guides stakeholders, developed a draft driving long term growth in Relief Fund. A sum of R30 tourism Recovery plan which tourism supply and demand. million has been set aside for after another round We will also use this period to this programme and it consultation, we will, within the sort out issues such as the will provide relief for the month August, submit to readiness for the rollout of the recipients for a period of Cabinet for Approval. e-visa system and resolution of three months. the challenges around the The plan proposes several issuance of licenses for tour A further R 40 million interventions. We envisage that operators. budgeted for Green Tourism the first phase of interventions Incentive Programme (GTIP) will primarily focus on the Amongst the key drivers for the to encourage private tourism protection of the domestic rapid tourism growth in enterprises to move towards supply side of the sector. As the last decade were stronger more efficient utilisation of already mentioned the impact global economic growth, energy and water resources of the pandemic on the supply growing middle class in will be speedily disbursed so side of the tourism value chain emerging economies, more that it can assist in reducing has been devastating. Supply- affordable air travel, increased operational costs. side interventions necessarily flight capacity, technological have to initially focus on changes, new businesses maintaining business continuity, South African Tourism will models and greater visa aligning the value-chain to also provide an exemption for facilitation around the world. health and safety standards, up to 12 months of the Despite the devastating impact as well as increased support for grading assessments and fees of the pandemic most of these SMMEs and market access. This followed by a payment will require the mobilization of drivers have not regressed holiday of 100% grading investment for the sector from which increases the odds for a discount to aid the recovery both private and public sources. rapid tourism recovery. of the sector. The investment gap is currently estimated to be around R 7 So far the indications are that We are cognisant the relief billion. tourism recovery will experience schemes that have been several phases,

DEDICATED TO AFRICA'S RENAISSANCE PAGE 14 JULY 2020 VOLUME 3 from hyper-local to pre-Covid-19 levels because, private sectors to ensure a community attractions, in the absence of a vaccine, it standardised, global through broader domestic will take time for our country to approach to the crisis. tourism, regional land and build confidence that travelling air markets to the to our country safe. We are Since the outbreak of the resumption of worldwide currently making efforts to Covid-19, the many international travel. ensure that we host multiple positive steps the tourism global events so that the sector has taken towards In 2019, domestic holiday country regain its status as a opening up have only trips increased by 170.6% to preferred destination for been achieved when reach 7.1 million compared business travellers.. government and the to 2018 and accounted for private sector have worked 24.8% of all domestic trips. Internationally, we have been closely together. It This is an indication that engaging with global bodies therefore stands to reason South Africans are to get guidance and to that for us to put the beginning to have an coordinate with our partners sector on a sustainable interest in exploring their around the world, especially our recovery trajectory, a close country. Before the source markets, in preparation working relationship resumption of international for the sector recovery. We have amongst the stakeholders travel, efforts will be made participated in virtual meetings is an absolute necessity. to capture the outbound with the G20 tourism ministers, market by enticing them to the UNWTO virtual conference PUBLIC-PRIVATE travel within the country. on Policies for Inclusive Recovery in Global Tourism, the PARTNERSHIP CRITICAL When we open AU First Meeting of the Bureau NOW MORE THAN EVER international borders we of the Subcommittee on FOR AGRICULTURAL expect that the regional Tourism of the Specialized DEVELOPMENT IN SA. market will quickly pick up. Technical Committee on Africa land markets form Transport, Transcontinental and the bedrock of tourism in Interregional Infrastructure, South Africa. This region Energy and Tourism (STC-TTIIET) alone accounts for 71% of and the WTTC. The broad international arrivals. In 2019 consensus in these forums, international arrivals which we have embraced, is declined by 2.3% to a total that countries must: of 7.2 million. Adopt global health and We anticipate that safety protocols to assure international travel for travellers that it is safe to travellers from outside the Wandile Sihlobo, Chief economist of travel again. the Agricultural Business Chamber of African continent will only Implement a rapid test and South Africa (Agbiz) pick in the first quarter of trace strategy to help The South African agricultural next year. The number of contain the spread of the sector has the potential to be inbound international virus amongst the sectors that will travellers will gradually grow Foster greater collaboration drive economic growth and job between the public & creation towards post-COVID-19 recovery. In a strict sense, the

DEDICATED TO AFRICA'S RENAISSANCE PAGE 15 JULY 2020 VOLUME 3 path to realising this The Department of Agriculture, Given these structural growth does not need new Land Reform and Rural challenges, the Master policies. The South African Development is currently Plan will have to lucidly government should rather, drafting the sector Master Plan articulate ways and means recast its vision of along with private sector players. to increase investment, as agricultural development Such a plan should prioritize well as the improvement sing chapter six of the high-value job-creating sub- or capacitation of local National Development Plan sectors that have untapped governance. A clear and (NDP) as a point of potential, and not only focus on solid business model will the traditional commercial departure. always attract investment. enterprises. Such areas involve In the case of investment, the former homeland regions of agriculture is a long-term The NDP proposed a three- South Africa, government land economic activity with tier approach for agriculture and also underperforming land good returns if executed and agro-processing to reform farms. The Master Plan soundly. Given this reality, reach their fullest potential should map out these areas and the South African of creating one million jobs conduct informed land-use government will have to by 2030, namely, the planning. Another crucial step will be to understand why clarify its long-term view development of agricultural development has on land reform policy, not underutilized land especially lagged over the past two only for areas that are in former homeland areas decades in such regions, while already farming and failed land reform farms productivity in commercial commercially (especially (which could unlock up to agricultural areas has more than in these uncertain and 400 000 jobs), the doubled since 1994. challenging pandemic expansion of export- times) but also for the There are several reasons which former homelands, where orientated high growth explain this disparity in fortunes, investment and areas (up to 250 000 jobs) the major ones being lower commercial agriculture is and investment in vertically levels of investment, inadequate set to make the most integrated agro-processing infrastructure, and limited farm impact to rural livelihoods. (up to 350 000 jobs). But management expertise. what will need to be done Concerning investment, poor A renewed drive on the differently from this point land governance, both in the prioritization of public- onwards (and not wait until former homelands and some private partnerships the pandemic ends) for the underutilized land reform farms, (PPP)is now more critical realisation of this broad have been the key than ever in bringing about development. vision is the adoption of a impediments. About the lack of infrastructure, the problem has The private sector will not strategic project been compounded by poor only bring “know-how” to management approach with service delivery in various local the state but also much- detailed operational plans municipalities, especially those in needed capital. South and key milestones to guide former homelands towns of Africa already has officials, various South Africa. The dearth of farm examples of such PPP stakeholders and efficient management expertise has been from which to build on. resource allocation exacerbated by limited access to These include, but not information, extension and training.

DEDICATED TO AFRICA'S RENAISSANCE PAGE 16 JULY 2020 VOLUME 3 limited to, the Sernick Group weather conditions permit, the and effective service in the beef sector in the Free government should encourage delivery in marginal areas. State and the Humansdorp the expansion of horticultural The government will have Co-op in the Eastern Cape, production as this subsector has to take an investment which focuses on field crops higher labour absorption friendlier approach, which multipliers than other subsectors and horticulture. Both is still anchored in of agriculture, in addition to also companies have partnered development. The PPP having higher export-orientated with government and approach is one such value. communities to empower model, and several case black farming businesses All these ideas aren’t new. There studies can be used to draw with the requisite is no need to re-invent the lessons from. knowledge to succeed.backlogs, wheel. Rather, the focus should be on understanding why there REFLECTIONS ON CHOICES has been institutional inertia, AND OPPORTUNITIES FOR The Master Plans should low levels of policy AFRICAN ECONOMIES reflect on such examples of implementation, and lack of POST-COVID-19. successful Public-Private informed project management Partnerships and further over the past two decades. innovate and develop Addressing the stumbling institutions which effectively blocks to development (i.e. drive and sustain investment, infrastructure and development. Moreover, this knowledge) and focusing on post-COVID-19 agricultural effective implementation are development plan should also encompass the agro- the key ingredients of a processing segment of the successful post-COVID19 agricultural sector. value chain, as that will add Samuel Ojo Oloruntoba, is a Lecturer at to job creation and rural TMALI and Associate Professor- International Political Economy, UNISA development. On this Given that the private sector’s particular point, private role might have been less The Coronavirus and its sector investment will need pronounced in the past, the resultant disease, COVID-19, hit to be attracted. tight fiscal position that the the world like a thunderbolt. South African government is What started in Wuhan, China Therefore, the agriculture currently in demands external in February 2020 has become and agro-processing Mast funding to drive development a global pandemic that Plan should also reflect on and agriculture. This means for continues to ravage both strategic incentives for firms the better part, agricultural developed and less developed to expand agro-processing development towards a countries. Apart from the huge in various towns which were post-COVID19 era will require health implications of COVID not predominantly deeper and greater 19 in terms of loss of many lives agricultural. This might be in participation of the private and overstretched health the form of tax incentives for sector. However, effective facilities, the virus has led to various agricultural hubs private sector participation severe macro and which will be determined by demands that government microeconomic problems the type of agricultural provides greater levels of policy in terms of job losses, lost activity. In areas where certainty, especially land reform, investments, and lost

DEDICATED TO AFRICA'S RENAISSANCE PAGE 17 JULY 2020 VOLUME 3 productivity in the world Central Banks of various countries efforts to produce and economy. These were due to in Africa have released billions of disseminate accurate and the lockdowns-imposed dollars to kickstart the economies timely information about lockdown as a means of and boost their capacity to cope COVID-19 for the public in containment and effective and continue in business. In some Africa. management of the countries, palliatives were also pandemic provided to the poor. As COVID 19 continues to evolve in Africa, the African countries have so far Additionally, given the limited pandemic has created reserves of virtually all countries in demonstrated resilience, opportunity to reflect, Africa, the governments invited creativity, innovation, and rethink and re-strategize the private sector to contribute to courage in managing the the health, economy and emergency funds. The responses epidemic. Several countries educational policies on the have been impressive. The across the continent have continent. The pandemic international community have responded to the pandemic clearly shows that there is a also contributed to some of these through a mix of well crafted funds with the European Union, huge gap between the economic and health United States of America, China required and available interventions, that continue making donations to the health infrastructures. to shape the evolving emergency funds. The COVID 19 is a respiratory realities of one of the most international Monetary Fund has disease which requires that inscrutable challenges of our provided loans to help countries in hospitals are equipped with time. difficult macroeconomic ventilators and oxygen. conditions and suspended interest What has emerged is that Countries like South Africa, payment on existing loans. 10 countries in Africa have Senegal and Ghana no ventilators at all. developed massive test The UK has helped in the forms of capacities, through making medical supplies to Ghana in the As COVID 19 continues to own test kits, developing first instance. At the scientific evolve in Africa, the tracing apps and making level, several initiatives are pandemic has created personal protective ongoing in universities and opportunity to reflect, equipment. African countries research institutes to find rethink and re-strategize also established isolation solutions to the pandemic. For the health, economy and centres to treat infected instance, the new COVID-19 Africa educational policies on the people. Laboratories have Rapid Grant Fund led by the continent. The pandemic National Research Foundation been revamped to clearly shows that there is a (NRF) South Africa and supported accelerate the turn around huge gap between the by an international collaboration time for test results. required and available of funders including UK Research health infrastructures. and Innovation (UKRI) has a Governments on the COVID 19 is a respiratory launched a call for research continent have also proposals to look at prevention, disease which requires that embarked on the massive diagnostics and treatments of hospitals are equipped with rollout of stimulus packages COVID-19. The £3.8M fund also ventilators and oxygen. to the private sector as a includes an innovative component What has emerged is that means of revamping the to bolster science and health in 10 countries in Africa have economies so badly affected no ventilators at all. by the lockdowns. The

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According to the World the shabby state of medical teeming jobless youth are Health Organization, there infrastructures and facilities in productively engaged in various are fewer than 2,000 many parts of Africa. Despite the sectors of the economy. The ventilators across 41 creativity that has been deployed multi-stakeholder approach countries in Africa. Nigeria in response to the current adopted in the wake of the with a population of pandemic, the previous neglect of pandemic can be explored to 200million only has 100 the health sector calls for urgent shore up capital to finance key ventilators. South Africa, with action for prioritisation of health activities geared towards the most advanced health as a public good, with resultant revamping the economy in higher allocation in the budget. Africa. infrastructure boasts of 3215 medical ventilators, which is Like other parts of the world, Additionally, the governments less than half of what the COVID 19 has negatively impacted of African countries should country needs to cope with on the African economy. Tourism ensure that they provide the pandemic. According to has been affected in ways that incentives to the private sector South Africa’s Health have led to the loss of billions of in the form of removing Department, 2,105, or dollars in revenue as well as a loss obstacles to doing business, in roughly two-thirds, of the of millions of jobs. The informal ways that can foster available medical ventilators nature of the economy worsened productivity and in the country are in the the impacts of the lockdowns competitiveness. On the other private sector. In a country imposed by countries. Borrowing hand, the private sector should where access to private to meet the immediate needs of pay competitive wages and medical services is costly and the suffering masses through other benefits to workers as a only available to a very tiny palliatives has compounded an social imperative. Small and part of the population, this already dire debt situation. medium scale enterprises hold is problematic and the ace for job creation. Thus, it symptomatic of deeper The pandemic has created a is incumbent on governments structural problems in the unique opportunity for African to invest massively in the real country. leaders and other stakeholders to and services sectors of small rethink and re-arrange the and medium scale enterprises. Although donors have been economy in ways that can be Efforts should also be made to sending medical ventilators more inclusive, participatory, add value to the various raw to different African countries, resilient, and sustainable. This will materials and minerals before the small number of such require a massive program of export. critical equipment indicated investment in job-creating infrastructures such as road and Given the disparities in the the massive neglect that rail constructions, industrialization economic capacity of African hospitals in Africa have and standardization of the countries, a regional integration suffered over the years. informal economy. Tourism is approach should be Rather than investing in and critical to the revitalization of the strengthened by supporting equipping hospitals, many economy. African countries and ensuring the success of the political elites in Africa will should put in place safety African Continental Free Trade rather embark on medical measures and gradually restart Agreement. This will help to tourism to Britain, the United this sector as being done in other build complementarity, foster States of America or India. regions of the world. sharing of resources and The pandemic has revealed benefits of trade and Training and upscaling of skills are investment. very critical in ensuring that the

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TMF PROGRAMMES

THABO MBEKI PRESIDENTIAL LIBRARY (TMPL) #BuyABrick CAMPAIGN

“If you don’t understand history, you will not be able to deal with today’s issues”.

With these powerful words, The Buy A Brick Campaign is The intergenerational President Thabo Mbeki an exciting call-to-action youth conversation that took place at emphasised the dire need for initiative that aims to drive and this launch demonstrated that the preservation of history mobilize young people across that indeed young people can and knowledge on the all races and class to purchase become the architects of their continent, as a tool to guide a brick and be partakers in the future and play a pivotal role in future leaders in finding new building of the Thabo Mbeki building this continent. solutions for Africa’s Presidential Library. challenges and achieving Each Brick symbolizes the Africa’s transformation. These This campaign cements the various building blocks, words furthermore ignited a idea that for anything great to collective effort and unity fire among young people, be built- it must be built one required to build Africa’s challenging them to take step at a time, in our case, one renaissance, and is a depiction centre-stage in building a brick at a time. The launch of of what the Thabo Mbeki home for their history and the campaign took place on Presidential Library hopes to becoming the generation Instagram Live on June 16 achieve. that propelled Africa’s rebirth. 2020.

DEDICATED TO AFRICA'S RENAISSANCE PAGE 20 JULY 2020 VOLUME 3

When you purchase a brick, your name will be recorded on the TMPL Hall of Honor. Anyone anywhere can purchase because there is going to be a virtual wall of #TMPLBricks.

The campaign comes at a time where stories of hope and victory need to be told. Buy A Brick campaign is more than a crowdfunding campaign towards the building of the TMPL. It aims to be a vehicle for change to empower young people, today. Be on the look- The brick for students’ costs out for exciting competitions R100 and for the working youth, where scholarships for various R1000. online courses and other skills development opportunities will The journey for Africans’ self- be up for grabs! reliance and self-confidence begins now.

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ABOUT THE TMF

The Thabo Mbeki Foundation (TMF) is a non-profit organisation established in 2008 upon former President Thabo Mbeki’s retirement as President of the Republic of South Africa, to support his continuing engagements with efforts aimed at promoting the achievement of Africa’s renaissance.

In support of its aims and objectives which are geared towards the achievement of its vision to be the catalyst for the achievement of an African Renaissance, the TMF runs the following core-programmes:

Thabo Mbeki School of Public and International Affairs Thabo Mbeki Presidential Library South African Democracy Education Trust

In addition to its core-programmes, the Foundation also engages in annual public dialogues aimed at contributing to discourses aimed at influencing public policy on matters relating to gender inequality and the women empowerment and addressing the leadership deficit on the continent.

As an independent non-profit organisation, the TMF relies on generous support from institutions and individual. We encourage everyone who wishes to further the work of the TMF to consider making a once-off or regular monthly/annual contribution, either towards supporting the operations of TMF or specifically towards any of its programmes.

The Foundation is a registered Public Benefit Organisation (PBO), reg; 930031878, therefore donations are tax deductible and received in terms of Section 18A of the Income Tax Act No 58 of 1962.

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Bank Name: First National Bank Trust Services Account Name: The Thabo Mbeki Foundation Account Number: 621 - 825 - 8888 Branch Code: 253305

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