Johannesburg, South Africa: In his State of the Nation Address delivered on 6 January 2025, South African President Matamela Cyril Ramaphosa articulated his vision for the economy and the South Africa we want. Whilst acknowledging the various challenges faced by the Republic, such as climate change, the President unpacked the Government’s desire to lift economic growth to above 3 per cent.
Quite a number of key interventions were mentioned in his speech, accompanied by clear plans of what the government intends to do to catalyse the South African economy. Whilst these interventions are noted and welcomed, there is a need to interrogate the many ways in which these interact with the aviation sector.
President Ramaphosa emphasised that graduate recruitment schemes will be strengthened to tackle youth unemployment and create jobs. It is no secret that the aviation industry is in dire need of such an intervention for the hundreds of aviators (pilots, cabin crew, air traffic controllers, dispatchers, aeronautical engineers, drone pilots) who find themselves unemployed.
A total of R940 billion in infrastructure development will be spent over the next few years to revitalise both the urban and the rural infrastructure. Amongst other key projects, these funds will be utilised to modernise our ports and airports. Notable is the construction of Boegoebaai Harbour in the Northern Cape, which will be a game changer for both coastal communities and the marine industry. It goes without saying that this new harbour must be integrated with aviation in order to maximise on its contribution to the economy.
The proposed interventions include energy sector reform to ensure energy security. Coupled with this is heavy investment in the development of artificial intelligence (AI), reviving the digital economy, embracing renewable energy and green manufacturing. An interesting hint was the mention of electric vehicles, coupled with the need to finalise a vibrant industrial policy. A starling omission was Alfie the President to articulate South Africa’s direction in the area of Electronic Take Off and Landing (eVTOLs) aircraft. With the leading economies in the globe currently involved in debates, policy and regulatory developments, as well as research and development around eVTOLs, South Africa ought to be going in the same direction.
Key take aways from the speech include the Government’s commitment to training women entrepreneurs to participate in the economy. Properly executed, such a move would contribute to the transformation of the aviation industry where women remain poorly represented. Further, the speech revealed the Government’s commitment to improving rural supply chains, and making improvements in agricultural production. This cannot be achieved without stimulating and reviving existing rural airports, such as Victoria West, and making them economic hubs for the ease of transportation of goods and produce.
Acknowledging that the mining industry is the bedrock upon which the South African economy was built, the President indicated that Government will be developing and implementing a modern transparent mining rights framework, coupled with concrete steps to ensure beneficiation of minerals extracted locally. Again, this sector needs to see more Government interventions that are inclined towards aviation. The use of drones for various purposes within the mining industries (ranging from surveillance, security, etc) could help increase productivity in the mining sector.
The services sector also emerged as a key economic driver. For instance, feeder industries such as tourism were highlighted as a key focus area for spending in the coming year. To that end the Government will work tirelessly to increase flights to key destinations and introduce an e-visa framework accompanied by an AI-assisted application process. These are aimed at streamlining and fast tracking the process.
In keeping with the trajectory of leading economies globally, an Innovation Fund will be established to provide venture capital for tech startups. This is a critical development for the aviation sector, and hopefully this will encourage participation by tech startups in the remotely piloted aircraft systems sector, the AI and software development sector which are sorely needed to transform and advance the aviation industry. Connected to this ambition, is the Government’s plan to ensure investment in the digital infrastructure to enhance overall service delivery. For the aviation sector this is critical, to ensure that these startups can apply for funding, registration, bid for services etc without following an archaic, convoluted analogue process that presents more barriers than opportunities. Implemented correctly this intervention can be a catalyst for the growth of the aviation industry.
In his address it emerged that the Government will introduce a comprehensive student funding model for higher education, to address the issue of the missing middle. The aim is to provide for university students from disadvantaged backgrounds. While notable, this intervention lacks targeted interventions for aviation students. Quite often funding for higher education excludes aviation training, thus leaving many aspiring pilots, cabin crew, aeronautical engineers, flight dispatchers and air traffic controllers unfunded and without access to the industry. When funding for aviation students is made available, it is often on an ad hoc basis, leaving a majority of disadvantaged students uncatered for.
In dealing with the ever present risk of resource squandering, the Government intends, amongst others, to establish a Digital Lab to fight commercial crimes as part of a plan to fight state capture and corruption. The anti-corruption architecture will be reformed to avoid duplication of mandates, a whistle blower protection bill will be introduced in parliament, and efforts to fight corruption will be intensified in an attempt to remove South Africa from the International Financial Task Force grey list. These interventions are commendable and critical if all the investments the President talked about are to bear fruit. If the anti-corruption architecture is not emboldened, all these investments will be in vain.
In summary, it would have been lovely to see the Government’s plan to catalyse the aviation industry in a more pointed and specific manner. For instance, in his talks about programmes for youth employment, the President did not indicate how the South African Airforce will be capacitated to absorb more young people into various facets of the force, to utilise their aviation skills. What is to be commended though are his plans to ensure that state owned enterprises are functional, which would prevent a second collapse of the flag carrier, SAA.
Prof Angelo Dube
