We have almost achieved the end of load shedding because of the private sector’s embrace of electricity generation. Billions are being invested in new renewable energy plants, adding significant capacity to the grid. At the same time, the partnership between business and government has enabled private sector expertise to support Eskom in improving plant performance, all in line with the Energy Action Plan.

The electricity story in South Africa is an example of what can be achieved when we approach a problem in a new way, It is the art of the possible, but with a much wider conception of what is possible than we had thought before.

I found myself pondering the comparison between the electricity story and logistics last week during a meeting of the executive of Transnet and the BLSA Council. Transnet’s new management team is making good progress on many fronts, but, particularly when it comes to drawing on the private sector, there is a limited conception of what is possible. There are several public/private partnerships that Transnet is working on, including concessions for Richard’s Bay and Durban ports. But compared to the electricity sector, which enabled a dramatic increase in investment, the steps on the logistics front are lukewarm.

Transnet is struggling to raise finance given its high debt level that is costing it R13bn/year to service, including R60bn of debt accumulated during state capture for which the utility received no positive value. It now faces a R51.4bn maintenance backlog for network restoration while its fleet of locomotives is ageing rapidly. Transnet is working on several private sector partnerships, largely through “private sector participation” arrangements in which private investors contribute equity or operating leases. These are all well and good, but as the electricity experience shows, if the private sector is empowered to become a producer and supplier itself, rapid progress can be achieved. The logistics sector has a history of private sector participation – the toll roads most obviously. The N1 and N3 toll roads were among the first public-private partnerships in our democratic history and enabled the rapid deployment of private capital to support economic growth. Those deals made it possible for the private sector to build and operate the roads on 30-year concessions. The model has even worked for cross-border infrastructure, particularly the Maputo Corridor that links Johannesburg to Maputo.

If we were pushing the envelope of what is possible, we would have a far greater vision for the rail and ports sector. Concessions of whole rail corridors can be done. Whole ports can be concessioned. That could introduce real competition, with rail corridors and ports competing to provide the best and lowest cost services against each other. That would enable the economy to become far more competitive in servicing export markets, driving economic growth and creating jobs and tax revenue. And, as the electricity sector has shown, it can happen fast once the key decisions are made.

I am, though, concerned about the policy environment for logistics in future, making it hard for such important decisions to be made. It is entirely unclear what government department oversees our big state-owned enterprises. After the closure of the Department of State-Owned Enterprises at the end of the last election, the SOEs were initially being overseen directly by the presidency. They are in the process of moving to their policy departments – Eskom to energy and electricity and Transnet to transport, but then they are supposed to be moving to a new SOE holding company once the relevant legislation is enacted. This is a potentially long and confusing period in which the kind of vision needed to drive a strategy for the sectors will be difficult to develop. It does not inspire confidence, given the kind of vision we need to ensure world-class logistics services for our country.

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We do achieve much when government and the private sector work together in a productive way that draws on the strengths of each party. That is why the idea of “compacts” can be helpful in painting a vision and achieving consensus. However, the “health compact” that was signed by Deputy President Paul Mashatile last week is a mockery of that idea. A compact that excludes key organised business is not a reflection of any deep consensus, and not the way for the country to make progress. Business Unity South Africa, the apex business body, as well as key organisations in the health sector have publicly expressed dismay that the compact was unilaterally redrafted by government to put the National Health Insurance scheme at its centre. Busa and BLSA are on record for our clear view that the NHI as currently conceived is unworkable, and a huge risk to the economy. We cannot compact with government, unless it is in line with the many constructive proposals from business on how the NHI could be made workable without extensive damage to the economy. That government would go ahead and sign a compact that is nothing of the sort, is an act of bad faith.

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Congratulations to Judge Raymond Zondo on his retirement after a 27-year career in the judiciary. He leaves a proud legacy for the rule of law in South Africa. His tenure as chief justice and his critical role leading the State Capture Commission has helped the country get back on its feet after our institutions of the criminal justice system were dealt a heavy blow. Our country’s jurisprudence has been heavily influenced by important judgements he penned over the years. We are all lucky to have had him as the head of our judiciary.

I wish the best to Judge Mandisa Maya as she takes over as chief justice. Organised business has profound respect for the apex court and the wider judiciary which we hope to see thrive under her leadership.

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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.