Poor government service delivery, especially in electricity, is impeding business growth in South Africa, according to Grant Thornton’s latest quarterly International Business Report, published last Tuesday.
As local communities grow impatient with the speed of service delivery, protests have become widespread. A research report by Municipal IQ last month showed South Africa experienced a significant rise in service delivery protests in May, with the Western Cape hardest hit. In the second quarter of this year, 59% of business owners surveyed by Grant Thornton in South Africa said they were negatively affected by poor government service delivery, up from 53% in the first quarter. On a regional level, the survey showed businesses in the Eastern Cape battling the most with this issue, with 65% of business owners in that province citing it as a concern. “Only by addressing poor performance on service delivery concerns such as utilities, billing issues and road concerns directly with government can business help achieve the country’s goals to eliminate poverty, and create and reduce inequality,” said Deepak Nagar, national chairman of Grant Thornton SA. The International Business Report, which tracked views across 12 000 businesses in 40 economies but also surveyed 150 senior executives or business owners in South Africa, found that on balance 53% of respondents were optimistic on developments in their economies over the past 12 months. Last week, the Human Sciences Research Council said the African National Congress’s policy of deploying cadres was adversely affecting public services.“One conclusion that seems to be common is that the ANC’s deployment strategy systematically places loyalty ahead of merit and even of competence, and is therefore a serious obstacle to efficient public service,” researcher Modimowabarwa Kanyane said at a seminar in Pretoria.
Politically connected, incompetent people were often deployed to public positions, which led to a demoralised public service, Mr Kanyane said. “Incompetent and unqualified people are unable to deliver services efficiently and effectively. Competency and ethical standards are critical for an … effective public service.” Researcher Gregory Houston said, however, it was unfair to place all the blame for incompetent public servants on the ANC. “The ANC has acknowledged the flaws in their cadre policy. It also has to be said that not all people deployed by the ANC are incompetent,” Mr Houston said. “In addition, the past 18 years have seen the transformation of the public service from an extensive and expensive bureaucracy to one which is more flexible … from a public service dominated by one race group to one in which all race groups are represented.”Source: BusinessDay pickworthe@bdfm.co.za
