As political parties continue to engage with each other to form coalition partnerships, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) says it joins the broader business community in emphasising the importance of prioritising the interests of the country over narrow political interest.
“We strongly urge the negotiating partners to take heed of South Africa’s priorities which at this stage include: the public debt trajectory, which will be influenced by maintaining a prudent fiscal path and consolidation; the need for macroeconomic stability; the importance of investor confidence; and sound public-private partnerships,” it says.
Unemployment, especially among the youth, remains a serious matter requiring urgent attention which ultimately cannot be redressed without investment and growth, the federation says.
Hence, Seifsa stresses that South Africa is facing a defining moment in its political trajectory, with the business sector well positioned to contribute to firmly placing South Africa on a path to inclusive growth and job creation.
“The business community has a vested interest in the growth and competitiveness of the South African economy. The basic truth is that long after coalition negotiations have ended, business and government will continue to have an almost symbiotic relationship in which business’ gains lead almost inevitably to government’s gains.
“After all, it is prosperous business that employs more people, while failing business ends up letting go of workers and eventually closing shop.
“Logically, therefore, it is fundamentally in government and business’ interests that the South African economy – and the metals and engineering sector – is successful and internationally competitive,” it says.
Seifsa argues that the mission for any emerging coalition must be to create an enabling, clear and predictable economic environment that South Africa, which has faced over 15 years of low growth, needs.
“Seifsa has no illusions that the negotiations between opposing political parties will be easy. It is our hope, however, that they will continue to bargain in a mature and constructive manner, with the interest of the country and, in particular, of the metals and engineering sector in mind.
“After all, our democracy, whose thirtieth anniversary we celebrate this year, was itself a product of compromise.
“South Africa has much to be proud of, including a strong democratic spirit, robust media, a resilient judiciary and a business class willing, able and prepared to lend much more than a helping hand,” Seifsa concludes.