Transitioning SA's Petrochemical Value Chain
Government administration, bureaucracy and institutions
Democracy, transparency and a capable, organised and functional state are seen as critical to the energy transition, to drive a move to a more inclusive and just South Africa (Source: Labour Engagement). Some of the challenges being encountered in driving the just transition include:
- A lack of intra-government co-ordination: According to a Business Engagement, a lack of co-ordination is seen within and between government department objectives, in the types of conversations and the various discussions that happen in silos, and in the lack of policy co-ordination.
- Government capacity is limited: The Zuma period of state capture eroded government capacity. Given current socio-economic challenges, government is focused on dealing with short term crises, with little space or institutional mechanisms to consider longer term implications of policy (Source: Government Engagement). For example, a short-term employment creation drive that focuses on petrol station forecourts runs counter to a longer-term transition to electric vehicles (Source: Government Engagement).
- Decarbonisation literacy amongst many leaders is limited: Many politicians and civil servants do not understand the implications of climate change and decarbonisation (Source: Labour Engagement). Short term imperatives, such as those focusing on security of liquid fuel supply, may be real or may just be perceptions of reality. Perceptions of challenges become as significant barriers to decarbonisation as real ones, and overcoming such perceptions requires a significant level of effort (Source: Government Engagement).
South Africa has been governed by the ANC as its liberation party for the past 30 years, but this looks set to shift to a coalition government sometime this decade, perhaps as early as 2024. Coalitions at the local level have been fragile and unstable, exacerbate existing programming difficulties and slow down the ability to make long term policy (Source: Labour Engagement). This could signal further challenges in this area.
