The positive impact of the Government of National Unity continues. Last week’s gazetting of important new regulations for visas for skilled workers is a big step forward to ease a major constraint on business.

The new points-based system for work visas provides an objective test of whether someone is eligible for work visas and enables companies to more easily get the skills they need to grow. Combined with the commendable progress made by the Department of Home Affairs in dealing with visa backlogs, the new regulations are being trusted to result in eased access to skills. It is remarkable how effectively the visa constraints on business are being resolved. The Presidency has estimated that one additional job is created for every skilled post that is filled. In research it did last year, it also estimated that access to visas was then the second biggest constraint on the economy after load shedding. Add the fact that last week also marked 200 days without load shedding, the two biggest constraints on the economy are easing.

The changes are not new policy – indeed, the points-based visa system as well as the remote work visitor visa that was introduced last week are the result of big reforms made by the previous administration working with Operation Vulindlela. The new policies were announced in May last year alongside a timetable for Home Affairs to implement the new regulations. The points-based system was given a two-year timeline for implementation, so last week’s announcement was well within that deadline. This is what effective government looks like.

It was also good to see more arrests last week related to tender fraud at Eskom, one of the main drivers of the utility’s operational struggles. The Hawks arrested six people involved in companies that got Eskom tenders by submitting forged financial records and shareholder agreements. This is another step in the many efforts that Eskom, as well as organised business, have made to get on top of corruption that has blighted the utility. BLSA has strongly supported these efforts.

However, with each success we must turn our attention to the challenges still ahead. Business is increasingly concerned about the reliability of water in our economic centres. Johannesburg has suffered several water outages and reportedly came close to a more catastrophic system collapse. The city is potentially facing a day zero soon, unless it is able to get on top of maintenance. That will be difficult, given that Johannesburg Water estimates it needs to spend R24bn to catch up on repairs to existing infrastructure, but its annual budget covers around R1.2bn. Its target for spending on renewal of infrastructure is 2% of the value of its assets, but this has been trending at below 0.5%. The situation is driven by a growing population as well as neglect of existing infrastructure.

Government has made strides in dealing with the bulk water infrastructure end of the value chain. The National Water Resources Infrastructure Agency was established earlier this year to ensure that the right dams and connecting infrastructure are developed. But we are seeing serious failures at the local government level, which are catastrophic for business. Economists estimate that if Gauteng’s water supply were seriously disrupted, R3bn of GDP could be lost every day. Constant water outages are already having a catastrophic impact.

Water is more complicated than electricity in the sense that there are many different institutions involved in the infrastructure chain from the collection of rainwater through to it coming out of taps in homes and businesses. Water boards and city infrastructure play key parts, and it is difficult for central government to directly drive sustained improvement. All three tiers of government, as well as the associated agencies, must work effectively to get water to consumers. But we need now to find our way through this complexity. It is increasingly critical that we look to find solutions that reach the local government level. Operation Vulindlela played a critical role in getting the new water infrastructure agency set up and has indicated its intention to focus more on problems at local government level. Water should be a priority. Alongside problems with port and rail performance, I think it is safe to say that water is now one of the biggest constraints on the economy.

The good thing is that with each success, such as load shedding and visa reform, business and the rest of the country can feel more confident that government is able to confront these challenges. We are, of course, a willing partner to help, but government capacity is key to long-term resolutions that remove the need for constant emergency interventions driven through government and business partnerships. I applaud the progress that has been made, which is making a genuine impact on the business environment and our ability to grow and create jobs. But we cannot let up – we must continue to work on constraints both new and old that frustrate progress.

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I was saddened by news over the weekend of the death former minister and Reserve Bank governor Tito Mboweni. He was a stalwart of the democratic government and a larger-than-life character. From minister of labour to finance minister, Mboweni contributed immensely to developing the key institutions of our democracy and ensuring our economy grew under independent and effective financial regulators. He could be relied on to speak his mind with clear and pragmatic views. He was a frequent speaker at BLSA events, displaying characteristic frankness in all our engagements. Of course we did not always agree, but Mboweni’s intentions were never in question. In between his government appointments, he joined the business world and served on the boards of several major companies with distinction. My condolences to his friends and family.

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BLSA is a business organisation that believes in South Africa’s future and shares the values set out in the Constitution. BLSA is committed to playing its part in creating a South Africa of increasing prosperity for all by harnessing the resources and capabilities of business in partnership with government and civil society to deliver economic growth, transformation and inclusion.