The sooner the Transnet strike ends the better, says Kgosientso 'Sputla' Ramokgopa

Head of investment and infrastructure development in the presidency Kgosientso “Sputla” Ramokgopa says if the ongoing wage strike at Transnet is not resolved, GDP will continue to contract and there will be job losses.

“The sooner we resolve the strike the better for the economy because we know that we have significant structural problems in the form of load-shedding. You don’t want another front to be opened in relation to the inefficiency of the transport network,” he said.

Speaking on the sidelines of a state visit to Saudi Arabia on Saturday, Ramokgopa said the strike at the country’s rail, port and pipeline company needed urgent political intervention.

TimesLIVE understands ministers Pravin Gordhan, Thoko Didiza and Thulas Nxesi met Transnet management on Friday to get an update on negotiations. This week the parastatal’s latest wage offer was reportedly rejected.

Though there was some headway when the CCMA intervened this week, the unions rejected Transnet’s offer of a 4% to 5% increase on Tuesday. TimesLIVE understands the union has since revised it to 7% from 6%.

A source close to the negotiations said: “In the first year, it will be 5.5%, followed by 6% and then 5% on the last year. Two of the biggest unions went to consult their members on the proposed offer.”

Ramaphosa, who concludes his visit on Sunday, arrived in Jeddah on Friday at the invitation of King Salman bin Abdulaziz Al-Saud and Crown Prince and prime minister Arabia Mohammad bin Salman bin Abdulaziz al Saud.

Speaking at the South Africa-Saudi Arabia Investment Forum, Ramokgopa said the gulf state and other Middle Eastern countries provide South Africa with an opportunity for exports. While the visit is about domestic investment growth, South Africa is also positioning itself as a significant player in the global economy.

“The first thing we needed to do was to announce to them that we can produce the best product. For us to be able to export products of a broad range it’s important that we comply with the rules here before we land our products here.”

He said it was important to understand the requirements to access markets before exporting.

“We have started those discussions and we are being introduced to learn more about their requirements so when farmers back home are producing they have that in mind.”

TimesLIVE understands the discussions between the countries were “frank and direct”.

A government source said: “The Saudis know what they want, they are like the Chinese. For them it is more about respecting their religion and culture.”

The visit was largely investment driven with both countries seeking to exploit each others' strengths. It is also understood leaders discussed the high number of South African Muslims who travel to Mecca on pilgrimage.

Mineral resources and energy minister Gwede Mantashe said Saudi Arabia is a new player in mining and this provided South Africa with an opportunity.

“Oil is described as fossil and therefore everyone must move away from it. I think that the (just) transition is going to be longer than many people anticipate, but the Saudis are determined to reduce their dependence on oil,” said Mantashe.

Saudi Arabia’s minister of investment Khalid Al Falih said the relationship between the two countries was “punching way below the weight”.

Attractive sectors of the economy that move the investment needle for both include energy.

“This is paramount and has always been especially important as the world faces an energy challenge that has started with the energy transition and decarbonisation which has been accelerated by the unfortunate events in Europe with the Russia-Ukraine war.”

Falih said there is unlimited appetite for Saudi companies to invest in energy.

Turning to mining, Falih said many of the memoranda of understanding signed on Saturday are in the areas of geological technical exchange. “The energy transition is going to lead to huge demand for copper, but also for electric vehicle batteries.”

On agriculture, Falih said serious Saudi Arabian investors were eyeing red meat, poultry, fisheries and aquaculture.

South Africa's agriculture director-general Mooketsa Ramasodi said the Saudi Arabian government has asked to inspect South Africa's systems as they want to import beef and mutton.

“We will be doing the inspections as soon as they are ready,” said Ramasodi.

Among products exported by South Africa to Saudi Arabia are lemons and acacia, while it imports dates.

“We are currently in discussions with them to export grapes,” he said adding it is also intended to export maize.

TimesLIVE

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