We can achieve a lot in reviving our economy by, among other things, erasing bureaucratic red tape, fast-tracking licensing

We live in a world of unprecedented economic uncertainty. Covid-19 is showing us how vulnerable economies can be to factors that may seem beyond our control.

This challenge is not new. Over centuries humans have learnt to control very difficult and seemingly implausible situations. There is no doubt we will evolve our capacity to deal with tough challenges – be they Covid-19 related or something unknown in the near or distant future.

While we learn to manage new situations that might appear to be beyond our immediate control, we must maximise our efforts where we are in control of our economic endeavours. I have in mind the regulatory and licensing powers that reside within the powers of the state.

There is an infinite lot we can achieve in reviving our economy, by, among other things, erasing bureaucratic red tape, fast-tracking licensing of businesses and easing the burdens of regulatory compliance. It is within this context that the decision by Human Settlements, Water and Sanitation Minister Lindiwe Sisulu to actively intervene to ensure quicker processing of water user licenses should be applauded by all who care about reviving the South African economy.

In a statement issued on 20 September, Sisulu acknowledged the crucial role her department could play in our economy. It includes accelerating the issuing of water-use licenses. “For our economy to recover and create job opportunities, businesses and investors need water use licenses for agriculture, mining and other sectors,” she said.

Sisulu has directed officials in her department and state entities within her ministerial portfolio to make sure outstanding water-use licenses were finalised within 30 to 60 days. “We need to play our part in supporting our business community during this difficult time,” she said. To demonstrate her seriousness, she has asked a report on outstanding water-use licenses.Sisulu has hit the proverbial nail on the head: we can have all fancy, big-worded economic plans, but if we don’t do the basic things that are completely within our control, we can forget about reviving the economy or reviving it with the urgency required to deal with the socio-political time-bomb that is waiting to explode.

It is clear that Sisulu has taken the directive issued by President Cyril Ramaphosa in the February State of the Nation Address to speed up water use licenses with the necessary seriousness. Indeed, the success of Ramaphosa’s economic recovery plan will depend on commitment of individual members of his Cabinet.

In her September statement, Sisulu demonstrated the urgency of the matter. She seems to share the frustrations that is felt in the business sector. In March, her department told Parliament of the plans to implement the decision to speed up the processing of applications. In June, she once again committed to playing her part in reviving the economy.

It is clear from the 20 September statement that Sisulu has decided to enforce strict compliance with her directives within the department. This is more than welcome, for there is no point with seeking to attract investors – foreign or local – when many of them are already in the queue, with capital in hand, waiting for the red tape to be broken.

Sisulu must not be the only one cracking the whip. Indispensable as they are, water-use licenses cannot, on their own, unlock South Africa’s economic potential. Businesses also need environmental authorisations. Those involved in these regulatory processes in this contested arena have to set aside their personal preferences and demonstrate absolute objectivity in favour of defusing the bomb of rampant unemployment.

Regulatory approvals are among the key considerations in the measurement of an economic competitiveness and the ease of doing business. This is why some countries, like Australia, have put in place systems to get all regulators on the same table to process applications.

This is an attempt to eliminate red-tape and to reduce regulatory gaps that allow some officials to inexplicably frustrate approvals. Competitiveness with regard to the ease of doing business is important to attract skeptical investors and retain confidence of the existing ones.

South Africa’s heart-breaking unemployment rate – with about 60% of unemployment among young people – requires that everyone focuses on creating as many job opportunities as possible within the shortest period possible.

South Africa’s fiscal position – with the fastest expenditure item on the national budget being interest payment on debt – requires that the state must fast-track economic activities from which it could derive revenue through taxes and royalties.

It’s in the self-interest of all Cabinet ministers to appreciate the importance of using their power to break red-tape in the interest of the economic well-being of the republic. This must be at the heart of public service – as opposed to personal service.