In the 2022 State of the Nation Address, President Cyril Ramaphosa spoke of the government’s intention to forge a comprehensive social compact that would join all social partners in a common programme to rebuild the South African economy and enable higher growth. However, this has proved difficult to get off the ground, the President said last night during the 2023 address.

Government has been unable to forge a social compact in the timeframe envisaged, the President acknowledged, because a number of new circumstances emerged that have made it difficult for social partners to forge a consensus.

Nonetheless, various role players have continued to work on a framework to enable joint action in key areas, such as energy, transport and logistics, employment creation and skills development, investment and localisation, social protection, crime and corruption.

While the government remains committed to forging a consensus among all sectors of South Africa’s society, the government has also undertaken practical collaboration in specific areas. Other social compacts, such as the one to fight the Covid-19 pandemic, have now been concluded.

Other social compacts have achieved several gains, the President pointed out. “We have seen it in initiatives like the Solidarity Fund that mobilised society, citizen activism and funding to achieve common goals, and in partnerships to end gender-based violence and femicide, and to respond to the effects of climate change,” he said.

“We have seen the benefits of this approach to promote investment and to develop master plans in sectors of the economy, such as automotives, clothing and textiles, poultry, sugar, agriculture and global business services,” he added.

The government’s social compact plans are also supporting the revival of several sectors and have led to the injection of private sector investment and the creation of new jobs and livelihoods. “We are pleased that social partners, particularly business, have been providing support to implement the Energy Action Plan in the spirit of social compacting. Similarly, we have developed a close working partnership with both labour and community in supporting other aspects of the energy crisis response,” continued Mr Ramaphosa.

By Mava Lukani
10 February 2023