On Thursday, President Cyril Ramaphosa delivered the annual state of the nation address (Sona). The Sona is a critical tool through which the president informs the nation about the current economic, political and social conditions. It also serves as an opportunity to highlight the government's accomplishments and outline its plans for the future. This year, however, what particularly stood out for me was the president’s emphasis on the growing involvement of the private sector in public governance which is rooted in neoliberalism.
Public-private partnerships (PPPs) are widely regarded as valuable mechanisms for driving development, especially in areas where the state may be limited in its capacity. Developed countries often employ this model to accelerate progress in sectors such as infrastructure, health care and education. However, a key distinction is that these countries do not relinquish their fundamental responsibilities to the private sector. Instead, they use PPPs to supplement and enhance public sector efforts without undermining the state’s primary role. The idea of completely shifting responsibilities to the private sector, as suggested in the recent Sona, raises significant concerns about the potential long-term consequences for South Africa's democracy and the wellbeing of its citizens.
In his speech, Ramaphosa proposed several initiatives that would rely heavily on private sector collaboration. This trend is particularly concerning, as former president Thabo Mbeki had previously warned against such a move. Speaking at the South African Association of Public Administration and Management (Saapam) annual conference, Mbeki cautioned: “In years to come, South Africa will become a case study of how private initiative succeeds where states fail. In political science, this is characterised as a counterrevolution, and a counterrevolution is not innocent, but in our case a direct threat to our democratic state and the welfare and wellbeing of millions of our people.” Mbeki’s warning is not one to be taken lightly; it reflects a profound concern about the growing shift of power away from the public sector, which could pose a direct threat to South Africa’s democratic foundations.
The concept of a “counterrevolution” in political science refers to a shift in power dynamics, where the state’s authority is diminished and private entities begin to wield disproportionate influence. This scenario threatens the core principles of democratic governance, such as accountability, transparency and the protection of public interest. When the private sector becomes too involved in decision-making processes traditionally held by the government there is a risk that profit motives will override public welfare. Essential services may become commodified, resulting in the exclusion of vulnerable populations and a weakening of social safety nets.
While private sector involvement in specific projects can be beneficial, it should never come at the expense of the state’s responsibility to provide for its citizens and protect their fundamental rights
There are numerous examples from around the world where the privatisation of essential services has led to detrimental outcomes. In some cases, privatisation has resulted in inflated costs, decreased access to services for low-income communities, and a lack of accountability to the public. For instance, in the UK, the privatisation of public utilities and the National Health Service has been a contentious issue, with critics arguing that these moves have compromised the quality of services and increased inequality. While private sector involvement in specific projects can be beneficial, it should never come at the expense of the state’s responsibility to provide for its citizens and protect their fundamental rights.
The government’s increasing reliance on the private sector to address systemic challenges is troubling. While the private sector may offer expertise and efficiency in certain areas, it is essential that the government retains control over critical sectors, such as health care, education and infrastructure. These sectors are foundational to the nation’s development and wellbeing, and their oversight should remain firmly in the hands of the state, which is ultimately accountable to the people.
If we are to preserve the integrity of our democracy, it is crucial that we strike a balance between private sector involvement and the state’s role in ensuring equitable access to services and resources.
The potential consequences of over-relying on private sector solutions are manifold. First, there is the risk of further entrenching inequality. The private sector often prioritises profit, which can lead to the marginalisation of less profitable or underserved communities. Second, increased privatisation can result in a loss of public accountability. When services are outsourced to private entities, citizens may find it more difficult to hold these companies accountable for failures in service delivery. Finally, there is the concern that the privatisation of essential services could erode the social contract between the government and its citizens. The state’s primary duty is to safeguard the welfare of all its people, not to outsource this responsibility to profit-driven corporations.
As Mbeki warned, this over-reliance on the private sector could indeed result in a “counterrevolution” that undermines South Africa’s democratic institutions. If we are to preserve the integrity of our democracy, it is crucial that we strike a balance between private sector involvement and the state’s role in ensuring equitable access to services and resources. The government must resist the temptation to delegate its core responsibilities to private corporations and instead focus on strengthening its own capacity to deliver essential services to its citizens.
In conclusion, while public-private partnerships can be a useful tool in addressing certain challenges, they should not be used to abdicate the government’s primary role. The state's involvement in key sectors must remain robust and centred on public welfare. Let us heed the warning that too much reliance on the private sector could lead to a weakening of democracy, and, ultimately, to a society that serves corporate interests over the needs of its people.
John Ntshaupe Molepo is an associate professor at the Tshwane University of Technology and the executive director of the South African Association of Public Administration. He writes in his personal capacity
For opinion and analysis consideration, email Opinions@timeslive.co.za
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