We will

If there was one phrase that Cyril Ramaphosa relied on during last week’s State of the Nation Address (SoNA) it was “we will”. The president created a long list of commitments for the government by prefixing many of his sentences with “we will”.

Given the lack of follow-through on previous commitments from previous SoNAs, however, citizens will rightly be cynical until he returns to say; “We have”.

From a maritime perspective the 2025 SoNA was wholly disappointing. Past SoNAs have had more of a salty flavour. Since taking over from Jacob Zuma, Ramaphosa has commented on port performance, the need to tidy up Transnet, the progress of Phakisa, opportunities in oil and gas, looming legislation, the green hydrogen horizon and more.

The expectation that these would be revisited this year was unrealised. Despite focusing on the poor performance in our ports during his speech, his proclamations that operations were “steadily improving” seems to be a distinctive step backwards from previous years where he has been enthused about Transnet’s progress in securing private sector involvement in specific port operations.

The promised private sector involvement in the Port of Durban’s container operations that was triumphantly announced in more than one previous SoNA has been stalled by legal action – essentially thwarting the initiation of assumption of work by an international investor.

This is not a good signal to be sending to other potential private investors.

Perhaps, then it was wise that the president remained circumspect and vague in his comments on the ports and specific ambitions in this year’s address.

This brings us to the subject of Transnet and State Owned Enterprises (SOE) in general. The need to address the systemic issues that deter optimal effectiveness across several of our SOEs includes that of Transnet.

The concerns over the workings of several of our SOEs has permeated most of the SoNAs. Interventions have been launched and yet we are still left with the overall theme of weak performance, corruption and wasted expenditure. ?

Mr President, we need to see more comprehensive progress in the work to corporatise Transnet National Ports Authority (TNPA) as required by the National Ports Act. This has been an ongoing commitment that has not materialised. The worry that the finalisation corporatisation will upset the Transnet balance sheet must be addressed with some urgency to give effect to an action that many believe will promote TNPA’s effectiveness to enforce and improve port efficiencies.

Now that the oversight for Transnet has been moved to the Department of Transport, we would also like to see this ministry place a greater focus on the maritime sector as a whole.

With elections for a seat on the International Maritime Organisation scheduled for the end of this year – I would have welcomed one of his “we will” sentences to end with the details of how South Africa intends to campaign to regain their position in Category C.

Referring to the commitment to fast track the Public Procurement Act, my hope would be to see a more transparent and consistent process introduced for the issuing, awarding and publishing of all public tenders.

Publishing a weekly list of maritime tenders to subscribers, Maritime Review notes that almost none of the government departments provide updated details on the progress of issued tenders on their website.

To their credit, the Department of Forestry, Fisheries and the Environment is the most transparent in this regard. Sadly, however, this does make the rate of cancellation and slow award of many of the maritime-related tenders that they do issue very noticeable.

Moving to the topic of mining. Ramaphosa threw out another of his “we will” statements:

“We will put in place an enabling policy and regulatory framework for critical minerals.”

He goes on to mention the valuable resources under our soil, but fails to address the potential of the offshore oil and gas sector. Is South Africa content to allow its neighbours to pursue this opportunity while leaving us behind?

Can we not work to create a roadmap that allows us to entertain the conversation of a just transition towards renewable resources that simultaneously provides an opportunity to benefit from the offshore reserves? It may well assist Ramaphosa’s ambitious goal of achieving the economic growth rate of 3% that he is seeking. ?

This should have been a fundamental topic for inclusion in this year’s SoNA.

It would have also been useful to hear a bit more about the country’s progress regarding the establishment of itself as a Green Hydrogen hub. This has special significance for the maritime sector.

Previous SoNA’s have tabled the idea of a new port at Boegoebaai in the Northern Cape. The construction of port infrastructure would require marine services such as surveying, diving, dredging and more. Port operations would create employment for more and the establishment of the country as a possible supplier of green hydrogen as a bunker fuel would help boost South Africa’s global maritime credibility.

After introducing the topic in previous SoNA’s the president should have provided an update on developments – particularly as other African nations develop their own hydrogen strategies and roadmaps.

The topic of skills is of particular importance to the maritime sectors and Ramaphosa’s call for the private sector to work with training institutions to combine formal learning and job training is one that would assist the marine engineering, ship repair and building sector focus on developing fit-for-industry skills amongst artisans.

But, it’s not enough to just increase the production of artisans through TVET colleges, it is critical to ensure that they are equipped with the relevant skills that make them employable. Too many maritime skills still remain on the scarce skills list of the country.

I hosted a SoNA Watch Party this year and was joined by a small group of passionate maritime stakeholders who engaged in a post-speech discussion on what we heard.

The overall impression was that the president missed the mark on many maritime topics. Granted, we are not the only industry that requires governmental input. Given the strategic importance of our ports, however, and the fact that the ocean economy was singled out to help improve the country’s economic growth ambitions, it was a rather disappointing address.

So, President Ramaphosa, we will be watching in anticipation to see how these commitments are delivered.

UPCOMING COMMITTEE MEETINGS: Tuesday 11 Feb

Portfolio Committee on Minerals and Petroleum Resources (National Assembly):

• The committee will receive an update on the operationalisation of the South African National Petroleum Company.

Portfolio Committee on Transport, (National Assembly):

• The committee will consider written submissions on the draft Economic Regulation of Transport Amendment Bill, 2024.

PUBLIC COMMENTS REQUESTED

The Department of Forestry, Fisheries and the Environment (DFFE) is calling for public comment on draft regulations relating to the entry of foreign fishing vessels into South African waters which aim to provide clarity on procedures applicable to foreign fishing vessels wishing to transit local waters or enter the country’s ports.

Comments can be delivered by hand to: Aphiwe Nonkeneza: 3rd Floor Foretrust Building, Martin Hammerschlag Way, Foreshore, Cape Town Or by email: [email protected]