DA's Plan for Growth and Jobs - Democratic Alliance

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Simplify import and export proceduresExpedite imports and exports by reducing the number of documents and proceduresrequired by replacing the current system (which requires a bill of landing; certificate of origin;commercial invoice; customs declaration; foreign exchange form; inspection report; packinglist; and terminal handling receipts) with a simplified system that requires only threedocument: (i) a bill of landing; (ii) customs declaration; and (iii) a packing list (for exporters)or terminal handling receipts (for importers). This will simplify cross-border trade, and reducethe time it takes to import and export from over 3 weeks to between 7 and 8 days.Simplify customs proceduresExpedite the customs clearance process by introducing an electronic data interchangesystem, modelled on the Mauritius example, which will allow users to submit customsdeclarations online to the South African customs authorities. The system will include a riskmanagement component, which will assist officials to target their inspections on cargodeemed risky, and thereby minimise delays. These measures should reduce the customsclearance process form the current average of 4 days to only 1 day.Trading across borders (various indices)CountryDocumentsto export(number)Time toexport(days)Cost toexport (US$)Documentsimport(number)South Africa 8 30 1531 9 35Mauritius 5 13 737 6 13Singapore 4 5 456 4 6Time toimport(days)Table 11: Red tape and unnecessary delays hamper South Africa’s international trade. As aconsequence we are beginning to lose out to potential competitors on the continent, such asMauritius, which has put in place ambitious reforms aimed at making trade more competitive.Singapore is regarded as international best practice. Source: World BankPolicy outcome: Effective resource allocationEstablish a Parliamentary Budget OfficeFully implement the Money Bills Amendment Procedure and Related Matters Act, which waspassed in 2009. The Bill gives Parliament the power to amend the budget after it has beentabled and presented by the Minister of Finance (previously Parliament had only had thepower to approve or reject the budget) and provides for the creation of a specialistParliamentary Budget Office. Implementing the legislation fully by establishing a BudgetOffice will enhance the oversight role of Parliament and provide greater scope for promotinggrowth-enhancing fiscal policy.Limit government wage bill increaseLimit the total increase in the Government Wage Bill to the inflation rate, but allow fordifferential pay increases determined by performance. This is critical for reigning in the outof-controlpublic sector wage bill, which has far outstripped inflation, and has not beenmatched by productivity gains.73 | P a g e
Rationalise State Owned EnterprisesBegin a process of rationalising South Africa’s portfolio of state-owned enterprises (SOEs).This will begin with a comprehensive review of their core mandates, strategic importance,corporate structure, current financial position, and commercial viability. Based on thisassessment, an SOE consolidation programme will be rolled out that will see either (i) the fullor partial sale of SOE assets to interested investors; (ii) the listing of SOE assets on the JSE;or (iii) the retention of state ownership where this is deemed strategically desirable or in thepublic interest. In the case of scenarios (i) and (ii) the sale of these assets will assist withdeficit reduction; increased revenue for infrastructure development and social projects;enhance technology and knowledge transfers; and bring about efficiency gains resulting inimproved delivery and economic performance. In general, these will be instances where thecore function of the asset is not a strategic priority or where it does not provide an essentialpublic good. State mining company Alexkor is a prime example. Where assets, or divisionsthereof, are retained, their mandates will be narrowed considerably, their corporatestructures rationalised, and improved governance and oversight measures put in place (seeprevious chapter). Examples of this may include, but are not limited to, certain divisions ofDenel and Eskom.The DA in Government: Clean Audit means Clean GovernmentIn 2011 the Auditor General delivered a clean bill of health to the Western CapeGovernment. Every single provincial department received an unqualified audit opinion for thesecond year in a row. The Western Cape is the only province in South Africa to haveachieved this, which makes the DA administration by far the best-run provincial governmentin the country. Over 99% of its budget was fully spent, the bulk going to health andeducation.Desired outcome: Increase infrastructure investmentIncrease infrastructure investmentIncrease infrastructure investment to 10% of GDP. By building and maintaining the vitalinfrastructure that our economy depends on (such as roads, rail, ports, airports, pipelines,hospitals and schools), this investment will lay the foundation for future growth. Financingthe infrastructure development programme will require a mix of (i) direct state expenditure;(ii) listing SOEs themselves and/ or selling existing SOE assets; and (iii) private investment.This mixed financing approach will raise significantly more capital than direct state financingalone, and will contribute to mitigating the budget deficit while also ensuring that otherbudget priorities (such as social security) are not compromised. Private investment will beencouraged not only by creating the demand for private participation in infrastructuredevelopment through PPPs, but also by growing the private infrastructure asset class. Thiswill be achieved through active encouragement of household savings, which will fuel theavailability of capital for investment.Refine and strengthen the role of infrastructure regulatorsConduct a comprehensive analytical review of the current state of South Africa’sindependent infrastructure regulators. The review process will (i) clarify their respectiveroles; (ii) strengthen accountability; (iii) update relevant legislation and regulations; and (iv)make recommendations regarding institutional design reform. The Regulatory Impact74 | P a g e
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The DA’s Plan for Growth and Jobs
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Foreword by Helen Zille, Leader of
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Foreword by Wilmot James, Federal C
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LIST OF ABBREVIATIONS AND ACRONYMSB
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PreambleThe 8% Growth Project is th
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EXECUTIVE SUMMARYBreaking down barr
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A preferable, more nuanced approach
Page 16 and 17:
The DA’s policy proposals in this
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Engage Africa as a strategic econom
Page 20 and 21:
This high unemployment underpins wi
Page 22 and 23:
operative government’. The separa
Page 24 and 25: South Africa growth in GDP, 2000 to
Page 26 and 27: The situation is exacerbated by pol
Page 28 and 29: elieves that, with our rich mineral
Page 30 and 31: Inefficient resource allocation: Re
Page 32 and 33: credit, while the employees of thes
Page 34 and 35: have the intended effect. In develo
Page 36 and 37: FISCAL AND MONETARY POLICY PRIORITI
Page 38 and 39: Presidency and VIP security have in
Page 40 and 41: OPENING JOB OPPORTUNITIES TO ALLThe
Page 42 and 43: LONG-TERM POLICY PROPOSALSPolicy ou
Page 44 and 45: Policy outcome: Flexibility in labo
Page 46 and 47: an accredited V-TAP Certificate. Th
Page 48 and 49: SA’s global education rankingsInd
Page 50 and 51: BREAKING DOWN BARRIERS TO INCLUSION
Page 52 and 53: shareholders, and any employee alre
Page 54 and 55: SA Sports AcademyEstablish a world-
Page 56 and 57: (b) Specify that the annual financi
Page 58 and 59: Small Business Growth: A Key Driver
Page 60 and 61: Breaking down the barriers that kee
Page 62 and 63: and (ii) registering the Title Deed
Page 64 and 65: E-government in Africa (global rank
Page 66 and 67: Internet users in South Africa and
Page 68 and 69: Policy outcome: Improved state effi
Page 70 and 71: In the interests of sustaining stro
Page 76 and 77: Assessment Unit, located in the Pre
Page 78 and 79: The DA in Government: ‘No Frills
Page 80 and 81: A SUSTAINABLE FUTURE FOR ALLWe have
Page 84 and 85: MEDIUM-TERM POLICY PROPOSALSPolicy
Page 86 and 87: CONCLUSIONSouth Africa’s economy
Page 88: than limit, economic opportunities
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DA's Plan for Growth and Jobs - Democratic Alliance

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