By Deon van Zyl, Chairperson of the Western Cape Property Development Forum (WCPDF).
Opening Parliament recently, President Ramaphosa (with his technicolored dream coat GNU cabinet) declared that South Africa is open for business, with the seventh post-democracy administration to be about reducing red tape, getting government out of the way and allowing the private sector to create and grow an inclusive economy.
But, as Primedia journalist Thsidi Madia clearly pointed out in various post-Parliament interviews, we have heard this all before. What’s new?
With nearly two weeks behind us, some new ministers are already out of the blocks, implementing policies that have been on the cards for months if not years.
Shout out to Leon Schrieber for placing visas for skilled people high on his agenda, and to Gayton McKenzie for questioning where the Covid-19 relief funds have gone. Shout out to Dean McPherson as he aims towards South Africa being a construction site, and to both him and Senzo Mchunu for vowing to tackle the construction mafia.
Who have I missed? Another shout out to Lesetja Kganyago for calling out National Treasury for causing inflation through excessive administrative costs. Let us hope Enoch Godongwana has heard and can put his foot down even firmer with his colleagues and Treasury.
Healthy competition in the cabinet is what is required. Much like the Comrades Marathon after the cockerel’s crow, the early sprinters get out of the blocks quickly, but the real race only starts at Drummond, the halfway mark. In national terms, the next election is five years away, but halfway will co-inside with the next local government elections.
These local authority elections will be indicative of who gets to control the Union Buildings in 2029. Therefore, the race is not about which minister says what after yet another cabinet lekgotla; the real competition lies within what each municipality controls: which municipality can land the most and quickest land use approvals? Which ones can get bulk services implemented? Which ones can fix (not patch) potholes? And which municipality will be able to release public land the fastest for investment and housing?
In other words, which municipality will go out of its way to make South Africa a construction site?
Cape Town has an early lead due to a mayor and deputy mayor who understand the need for investment in infrastructure and growth. But all is still not well with the City’s Development Application Management System (DAMS), and the lack of urgency for internal departments commenting on land use and building plan applications. As an aside to both Mayor Geordin Hill Lewis and Deputy Mayor Eddie Andrews, it is time for some internal competition as well: which District Managers run the best show? Which officials will step willingly up to the plate, particularly once comments are in and the amended City of Cape Town Municipal Planning By-law is in place?
Another runner in the race is George Municipality, a well-performing municipality in the past but one which has just lost what is arguably one of the most competent senior municipal management teams in the Western Cape. Rumor has it that party political squabbles are to blame. Will party or coalition squabbles also derail other municipalities?
Oudtshoorn has also declared itself open for business and would like to attract new development, but the coalition there has also imploded.
I am reminded that it is not only a Western Cape race; until April this year, Midvaal Municipality was the best run in the country. It may have now been overtaken by Swartland, but it is still a strong contender who will fight for position. Will there be any others in the country contending for first place?
But what if municipalities are not in control of their own destiny? Will the Auditor General, charging government departments and local government R4.583 billion in auditing fees in 2022-23, help or hinder municipalities in better service delivery? Will the SALGA revenue of R730 million it charges municipalities lead to better municipal performance or only to bigger salaries for municipal employees? What about the R750 million the NHBRC charged the property market over the last fiscal year (2023) while paying out an average salary of R1.023 million to its 568 employees (and yet it has paid only R15 million in claims)? And how does it intend to use its accumulated surplus of over R8.3 billion?
President Ramaphosa, can we really afford to reduce red tape when so many government institutions and agencies rely solely on red tape for their existence? Which begs the question: how serious are you about reducing red tape?
We look forward to seeing how journalists such as Thsidi and others track the oversight obligations of Parliament’s portfolio committees to answer these questions.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Property Wheel.
The Western Cape Property Development Forum (WCPDF) is a registered non-profit organisation (246-760 NPO). It was founded in 2008 to create awareness, address the challenges that face the property development and construction industry, and to be the collective voice of the industry in the Western Cape. The WCPDF focuses on the full production line of private and public property projects and associated infrastructure provision.