BLSA
Bulletin
Over the past few months, the business environment has experienced significant advances and challenges, both globally and domestically.
As I have said previously, as a country we need to be agile and ready to pivot to the kind of business that is possible in the world as it is, not as we wish it to be.
While the current geopolitical environment and potential shifts in US policies could make it more difficult for the B20 to achieve its goals, I am glad to report that BLSA’s co-chairmanship of the B20 for 2024/2025 alongside Business Unity South Africa (BUSA) has been extremely successful thus far.
Following our activation in Davos and the impactful launch in Cape Town in February, we have consistently kept the B20 at the forefront, amplifying South Africa’s voice on sustainable development, climate resilience, and inclusive economic growth. This collective effort, bolstered by the active engagement of our members, ensures that the insights and priorities of South African business are shaping global economic discourse.
Domestically, our focus on structural reforms remains paramount. The recent launch of Operation Vulindlela Phase II by President Cyril Ramaphosa on 7 May 2025 signals a renewed commitment to critical reforms. BLSA is steadfast in its pledge to provide technical support for the swift implementation of pro-growth reforms.
There is still much work to do on reforms to support our economy. The upcoming launch of the BLSA Reform Tracker in August 2025 will further enhance accountability and accelerate the reform agenda, a testament to our commitment to data-driven progress.
In the realm of economic policy, our members’ engagement on the Draft Concept Paper on the Transformation Fund has been invaluable, as highlighted in the bulletin.
On social policy, the Department of Employment and Labour’s virtual consultations on the Employment Equity Act 2024 have highlighted the ongoing dialogue around sector targets. BLSA, alongside BUSA, has actively engaged with the Minister of Employment and Labour to express our concerns and advocate for a more inclusive approach.
The dire state of water sector governance and the financial strain on municipalities demand urgent attention. BLSA is actively involved in interventions such as the National Water Partnerships Programme and the BUSA Board Water Committee, focused on practical solutions for improved water access, sanitation, and infrastructure.
The recent proclamation and implementation of the Climate Change Act (2024) is a significant step highlighted in the bulletin, as is BLSA’s commitment to supporting a just transition to a low-carbon and climate-resilient economy.
You can also read more about the amendments to Treasury Regulation 16 for Public Private Partnerships (PPPs), a welcome development that should lead to increased private sector participation and investment in essential infrastructure, a key driver of economic growth.
To all our members – your active engagement, insights, and unwavering support are the bedrock of BLSA’s effectiveness. As we navigate the complex landscape of South Africa’s economic and social development, it is your collective leadership that continues to drive progress and shape a more prosperous future for our nation. Thank you.
Busisiwe Mavuso
CEO, BLSA
B4SA’s Youth Employment workstream has identified four priority levers to unlock near-term youth employment opportunities, in line with its aspiration to reduce youth unemployment by 10-20 % come 2030. The priority levers highlighted in the 9 May Government Business Partnership update are:
BLSA will continue to lend its support to this critical initiative, which seeks to develop sustainable solutions that facilitate the economic participation of young people.
Following the successful B20 launch on 24 and 25 February in Cape Town co-hosted by BLSA and BUSA, the B20 South Africa leadership team has been spearheading key initiatives to shape actionable, inclusive and sustainable policy recommendations for the G20 Summit.
The work of the eight B20 Task Forces is gathering momentum as the different groups collaborate to develop concrete policy proposals ahead of the November Summit. Besides providing support as B20 sponsors, BLSA members are well represented across the task forces, contributing expertise and sharing insights alongside members of the global community, while advancing recommendations that reflect both African priorities and global imperatives.
BLSA strongly endorses the sentiment expressed by B20 Sherpa Cas Coovadia in his recent B20 update, where he made the point that the world does not just need Africa’s potential, it needs Africa’s leadership.
The B20 South Africa Summit will take place from 18 to 20 November 2025, while the G20 Summit from 22 to 23 November 2025. Both will be held in Johannesburg.
In August 2025, BLSA will launch a tool designed to meticulously assess progress towards reforms across sub-sectors within the overarching sectors of governance, economy, and criminal justice.
This tool will not only ensure accountability in accelerating reforms from all parties but will also help South Africa continue its journey towards much-needed economic growth.
Operation Vulindlela Phase II was launched on 7 May 2025 by President Cyril Ramaphosa. This joint initiative between the Presidency and National Treasury aims to follow through on the existing reforms of transforming the electricity sector, creating a world-class logistics system, ensuring a secure and reliable supply of water and reform the visa system, and expand its focus into digital transformation, spatial inequality and local government.
Priorities for Phase II
Local government – Institutional, governance and financial reforms to address the root causes of deteriorating performance.
Digital Transformation – Investing in digital public infrastructure to enhance service delivery and expand financial inclusion
Spatial inequality -Create dynamic and integrated cities to enable economic activity
BLSA will continue to provide technical support to Operation Vulindlela, phase one and phase two for the swift implementation of pro-growth reforms in the interests of South Africa’s socio-economic development through unleashing the potential of the private sector.
Earlier this year, the Department of Trade, Industry and Competition (the dtic) announced plans to launch a Transformation Fund. The dtic released a draft concept paper on the Transformation Fund for public comment, giving stakeholders an opportunity to review and submit feedback on the proposed framework. BLSA compiled inputs for submission to the dtic by 28 May 2025.
We thank all BLSA members who have submitted concerns, questions and recommendations. We have included all of these in the submission document and your contributions have firmed up BLSA’s initial stance. BLSA’s position has been shared in various platforms, including an op-ed published on 1 April 2025.*
The position of BLSA is as follows:
BLSA remains fully committed to advancing transformation in South Africa. However, the proposed Transformation Fund, in its current form, presents significant risks in terms of financial feasibility, governance, and overall economic impact.
BLSA strongly urges the dtic to reconsider its approach by leveraging existing industry-led transformation initiatives, ensuring that contributions remain voluntary and incentivised, and embedding robust governance mechanisms. Lessons from successful private-sector models offer clear guidance for designing impactful, scalable and well-governed interventions. These must inform the foundation of any national transformation fund that seeks to deliver meaningful economic empowerment.
BLSA calls for a cautious approach to establishing the Fund, including engaging in a structured co-design process with the private sector and other relevant stakeholders. Given the importance of transforming the economy, it is imperative that the Fund be set up as far as possible to be robust and fit-for-purpose in achieving stated aims.
BLSA was invited to participate in the NEDLAC Trade and Industry Chamber (TIC) 10-aside Strategic Dialogue session held on 27 March 2025. This session brought together social partners and the Minister of Trade, Industry and Competition to discuss critical trade and industrial policy issues aligned with the Medium-Term Development Plan (MTDP) 2024–2029. Key topics covered included:
The Portfolio Committee on Planning, Monitoring and Evaluation recently reviewed submissions on the National State Enterprises Bill. This follows a public call for written comments by 14 February 2025. The bill aims to enhance the operational efficiency and governance of key public entities, listed in schedules 2 and 3 of the Public Finance Management Act, by establishing a holding company, the State Asset Management SOC Limited.
From 24 to 28 March 2025, the committee conducted oversight visits to several key public entities to gain a clearer understanding of their challenges and ensure that the bill is realistic and creates the envisaged practical operational standards. Following this process, the committee indicated that it would consider holding public hearings on the bill across all nine provinces. This effort aims to gather diverse perspectives and ensure that the legislation is grounded in well-researched policy frameworks and international best practices.
The Task Team on the Tobacco Products and Electronic Delivery Systems Control Bill finalised its work. A draft NEDLAC Report detailing areas of consensus, disagreements, and recommendations has been prepared.
Notably, concerns raised by the Business constituency were not substantively addressed during NEDLAC deliberations, with most proposals neither accepted nor considered by the Government. Criticisms have emerged that the Government approached the NEDLAC process as a tick-box exercise, particularly after the Portfolio Committee on Health instructed the Department of Health to re-engage Social Partners through NEDLAC.
The Business and Community constituencies had shared aligned positions on the Bill and planned to independently submit their concerns to the Portfolio Committee on Health following the conclusions of the NEDLAC process.
Social Partners reviewed the NEDLAC draft report to ensure it accurately reflected the Task Team’s deliberations before sign off. Once finalised, the report was to be submitted to the Trade and Industry Chamber convenors and overall NEDLAC convenors for approval. BLSA continues to monitor developments, as the bill’s impact extends beyond the tobacco and electronic delivery systems industry, affecting a wide range of businesses and the broader economy.
From 13 to 17 February 2025, the Department of Employment and Labour (DEL) hosted virtual consultations regarding the Employment Equity Act (EEA) 2024.
During these meetings, the DEL presented the new draft sector targets to stakeholders. These targets are set for “designated groups” broken down by gender, without specific targets per racial group. The figures showed significant increases compared to the 2023 and 2024 draft sector targets.
The DEL explained that the rationale for the changes in draft targets was due to various sectors performing well and exceeding the draft sector targets in the last reporting period. The new draft targets are based on the latest workforce profile statistics of various sectors, as reflected in the 2024 EE reports, and have been adjusted upward by up to 8% in certain sectors. Additionally, disability targets have been raised from 2% to 3% across all sectors.
On 23 May 2025, Business Unity South Africa (BUSA) held a session with the Minister of Employment and Labour Nomakhosazana Meth, regarding the Employment Equity Act (EEA) 2024. Members of BUSA and Business Leadership South Africa (BLSA) attended the session, expressing their grievances about the exclusion of their submitted comments from the draft EEA.
Since President Cyril Ramaphosa signed the National Health Insurance (NHI) Act into law in May 2024, none of its provisions are enforceable yet.
The South African National Health Insurance (NHI) has faced several legal challenges and court cases. The Board of Healthcare Funders (BHF), representing 40 medical schemes, took the President to court, arguing that his decision to sign the NHI Act into law should have been referred back to Parliament due to constitutional concerns. On May 6, the High court ruled in favour of BHF, stating that the President’s decision to assent to the NHI Act was flawed on ten counts. The court ordered the President to hand over the record of his decision within ten calendar days.
BHF is not the only organisation challenging the NHI Act. The South African Private Practitioners Forum, trade union Solidarity, and the Hospital Association of South Africa (HASA) have also filed applications against the Act.
While the court proceedings are happening in the background, on 6 March 2025 the Minister of Health, Dr. Aaron Motsoaledi, published draft regulations to establish the governance framework for the NHI Fund. These regulations outline the composition, appointment procedures, and responsibilities of the NHI Fund’s board and advisory committees. The draft is open for public comment until 6 June 2025.
The Integrated Resource Plan (IRP) 2024 is crucial for BLSA members as it shapes the energy framework essential for business operations. Its focus on reducing system costs and integrating renewables can lower energy expenses, support sustainability goals, and ensure compliance with environmental standards.
The IRP 2024 has been tabled at NEDLAC, with an inception meeting convened on 11 March 2025. Further meetings will continue through to 18 June 2025, when the NEDLAC Report is approved by the Overall Convenors and submitted to the Department of Mineral Resources and Energy (DMRE) and the Minister of Employment and Labour. The programme of these meetings outlines various themes from the IRP to be discussed and reviewed. Additionally, BUSA has revived its working group, with BLSA an active participant. An inception meeting was held on 09 April 2025 to discuss the revised IRP, the NEDLAC process, and establish a delegation to represent the Business constituency at NEDLAC.
BLSA’s active engagement will help align the IRP with business needs, fostering investment, energy security, and long-term economic growth.
The Department of Water and Sanitation (DWS) manages South Africa’s water resources, while municipalities designated as water services authorities provide water services to consumers. South Africa has 257 municipalities, with 66 defined as distressed. There are 144 Water Service Authorities responsible for water and sanitation services. The country has 958 water supply systems, with only 26 meeting Blue Drop certification criteria. Additionally, 334 of the 850 municipal wastewater treatment works are in a critical state. The non-revenue water situation is dire, with a national figure of 47%. This means almost half of the water that is treated, extracted, and distributed is not billed, contributing to financial strain for municipalities and resource inefficiency. In fact, municipal debt to water boards was R22.36 billion by June 2024. The Development Bank of Southern Africa (DBSA) estimates a R7.16 trillion investment requirement through to 2050.
Key interventions include the National Water Partnerships Programme to increase private sector involvement, the amendment of the Water Services Act to introduce operating licenses for water service providers, and the reform of metropolitan trading services to ensure accountability. Five metros, including Johannesburg and eThekwini, are moving towards a single utility model.
Recent updates
The Minister of Forestry, Fisheries and the Environment, Dion George, recently announced the official proclamation and implementation of the Climate Change Act (2024). The act provides a comprehensive framework for South Africa’s climate change response, aligning with global efforts to combat this issue. It focuses on enabling a just transition to a low-carbon and climate-resilient economy while fostering sustainable development, global climate commitments, and national sustainable development goals.
The proclamation notice was published in the Government Gazette on 17 March 2025, marking the Act’s commencement date. However, not all provisions of the Act became effective on that date, Certain provisions concerning carbon budgets, sectoral emission targets, and adaptation measures have been delayed to allow time to develop supporting regulations. These are currently being drafted by the Department of Forestry, Fisheries and the Environment (DFFE) and will be released for public consultation in due course.
In February 2025, the National Energy Regulator of South Africa (NERSA) approved Eskom’s Retail Tariff Plan (RTP). This follows Eskom’s submission in September 2024, seeking changes to its Schedule of Standard Prices based on its 2024/25 Cost-to-Serve study. The tariff restructuring is part of the Multi-Year Price Determination 6 (MYPD6) framework, which sets Eskom’s pricing structure through to 2027/28. Although the changes are intended to be revenue-neutral, recovering only the NERSA-approved revenue, they represent a significant reallocation of costs across customer segments, with substantial implications for the business community.
A key element of the approved plan is the introduction of a fixed Generation Capacity Charge (GCC), aimed at covering the cost of maintaining Eskom’s generation capacity, regardless of actual consumption. Instead of the full proposed charge, the Electricity Subcommittee of NERSA recommended a phased implementation of only 20% in 2025/26, increasing to 30% the following year. While this provides short-term affordability relief, it does not address broader concerns about long-term predictability and fairness.
Another core feature of the plan is the continuation of cross-subsidisation, where large industrial and commercial users pay above-market rates to support indigent consumers. This, along with a lack of transparency in cost allocation, has raised concerns about potential over-recovery from businesses and the use of unverified methodologies. These changes come at a time when electricity remains a critical cost driver for businesses, affecting competitiveness, investment, and long-term sustainability.
The amendments to Treasury Regulation 16 for Public Private Partnerships (PPPs), effective from 1 June 2025, mark a significant step towards revitalising the PPP landscape for institutions governed by the Public Finance Management Act (PFMA) in South Africa. By simplifying approvals for smaller projects and offering a clearer framework for unsolicited proposals, the Government aims to attract increased private sector participation and investment in essential infrastructure within these institutions’ purview.
BLSA’s media and social media performance experienced a notable decline primarily due to reduced activity levels over the festive season. However, from 10 January, when BLSA resumed content production, there was a noticeable spike in readership and impressions. This indicates that media houses and our followers across various platforms find significant value in the content we produce.
BLSA media coverage had a potential reach of 249 million readers, viewers, and listeners, marking a 78% decrease compared to the previous period.
BLSA’s performance from November 2024 to February 2025 was slightly lower than the same period in the previous year. During the previous reporting period (26 June to 4 November 2024), BLSA performed well due to commentary on the outcomes of national elections, the Government of National Unity, and the business-government partnership. Despite the quiet period over the festive season, BLSA managed to secure over a third of the media mentions it received in the previous period, confirming our recognition as the prominent “voice of business”.
BLSA continues to lead its peer group in global media reach, holding a 40% share of voice (an 8% decrease from the previous period) and a 37% share of voice in terms of global media volumes (a 6% increase ).
BLSA’s net tonality improved by 24 points, with BLSA content reflecting a neutral stance overall. This reflects the ongoing positive tone of BLSA’s editorial content throughout the period.
BLSA’s social media performance saw a significant decline during the period, mainly due to reduced activity levels over the festive season. Social exposure dropped by 72%.
This dip in performance is expected during the festive season. The decrease in impressions for Facebook and X can also be attributed to the lack of promoted content during this period. Twitter accounted for 69% of social volume, followed by Facebook with a 15% share.
The CEO’s Weekly Newsletter is disseminated via Mailchimp to the public and media. During the period of review, the newsletter had a 27% average open rate, compared to a 10.5% open rate across all industries was 10.5%. The subscriber base remained stable during the period, with the number of CEO Newsletter recipients increasing to 1,932, reflecting a net gain of five recipients.
The newsletter titled “Ministers and Business Leaders Deliver a Positive Message at Davos” (27 January 2025) was the top performer, achieving 610 opens and 82 clicks.
As we reflect on the start of 2025, it’s clear that we kicked off the year on a high note. The positive sentiment at the World Economic Forum regarding Team South Africa have set a promising tone for the months ahead. The successful launch of the B20 has further solidified our position on the global stage, showcasing our commitment to economic growth and collaboration. President Ramaphosa’s State of the Nation Address was well-received, highlighting key achievements and setting a clear vision for the future.
While the cancellation of the budget speech was disappointing, it also spoke volumes about the critical voices and views of the GNU parties. The parliamentary processes are becoming more and more transparent because of the coalition government. We eagerly await the outcome of the approved Budget 2.0 and the extent to which these will enable economic growth and the creation of jobs. Here’s to a year of continued success and unity!
