'Energy, SAA announcements a good start but SA must expedite economic reform'
The CEO of Rand Merchant Bank (RMB) has commended government for its recent action to address South Africa's major economic challenges.
At the same it should do more to build on this momentum, says James Formby.
Last week President Cyril Ramaphosa announced that companies would be allowed to generate up to 100 megawatts of their own power and even add excess to the national grid.
This was followed by the news that South African Airways (SAA) is relaunching with an equity partner.
Bruce Whitfield interviews Formby on The Money Show.
While the RMB CEO believes South Africa should respond very positively to last week's announcements, the message he's trying to bring across is that "a couple of swallows don't make a summer".
It's very important that we, altogether (government and the private sector), expedite this and actually do quite a lot more to build on the momentum that was clearly started a week ago.James Formby, CEO - Rand Merchant Bank
It's a positive start, but there are a number of areas where there can be some similar action which wouldn't cost the tax payer money and actually get a lot of progress in our economy.James Formby, CEO - Rand Merchant Bank
The decisions on power supply and SAA would seem blindingly obvious to most South Africans, Whitfield points out.
Why does it take so long for government to decide on important changes?
There was obviously lobbying for some time on the energy decision, and the SAA matter has been very well publicised, but what is good is that these decisions have happened now.James Formby, CEO - Rand Merchant Bank
I really think that if government builds on this with a focus on a few other key areas, we could make progress... like the telecoms spectrum that's been hanging in the balance for many years...James Formby, CEO - Rand Merchant Bank
This is a good example where actually sitting around a table with some of the telco leaders and some of the senior leaders in government could reach an outcome which would stop the lengthy legal process and get to some real progress.James Formby, CEO - Rand Merchant Bank
Formby says government reducing its stake in Telkom but retaining an interest, is an example of how public-private partnerships can work.
It's vital that government sticks to creating the right enabling environment and actually attracting great business leaders to lead businesses like Telkom and help grow them in a highly competitive environment.James Formby, CEO - Rand Merchant Bank
When it comes to SAA, Formby expresses the hope that this model can be replicated in other sectors.
He cites the example of the Post Office which, although struggling, has great potential.
"With the right strategic partner it could do a lot better."
Listen to the conversation on The Money Show:
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