BLSA CEO’s Weekly Newsletter – Pro-growth policy means knowing the cost before we act

Draft procurement regulations published in April propose extensive set-asides for 100%-black-owned businesses, but Treasury has not produced an economic impact analysis showing what this will cost or how effective it will be. In specialised sectors like wastewater treatment, high-voltage electrical infrastructure and enterprise IT, shallow supplier pools mean set-asides could inflate costs dramatically or prevent projects from proceeding at all. Regulations assume data-driven procurement planning and ICT infrastructure that most municipalities don’t possess, designing for the public sector we wish we had, rather than the one that exists. The Competition Commission’s regulatory review to reduce restrictions is welcome, but must be empowered to recommend legislative amendments, not just administrative changes, to make a meaningful pro-growth impact. Are our policies as a country pro-growth? You would hope the answer is yes. Growth is the only way we deal with the severe challenges facing us – unemployment, poverty, inequality. Growth enables companies to invest and expand, hire more people and pay more taxes. Employment enables people to live better lives and escape dependence on the state. Taxes mean government can expand social spending, improving education and healthcare. In short, growth is the path to the country we all want. So, it should […]

Read More