FOREWORD
FOREWORD
AN ECONOMY FOR ALL SOUTH AFRICANS What would an economy that works for all South Africans look like? After a decade of slow growth and poor governance, the ills that plague the economy are easy to discern. It is not difficult to recite the litany of woes and missteps that have kept the economy stagnant over that period. After President Ramaphosa took over the mantle of leadership early in 2018, business and consumer confidence rose. The change in leadership provided hope that the economic climate would improve. Indeed, government has tackled a number of pressing issues with vigour. Some of the policy and regulatory issues that have dampened the environment for growth – in fields ranging from mining, energy, tourism and telecommunications – are being tackled. A new Mining Charter has been released. There is constructive debate over the newly released Integrated Resource Plan. Regulations on visas have
The Constitution provides the vision of a society that
been amended. The policy framework for the release of high-demand spectrum
progressively gives all South Africans the opportunity
is being laid out, and an inquiry into the cost to communicate is under way.
to live with dignity, in good health, and with access to
New leadership has come in at various state-owned enterprises. The framework
education, sanitation and housing. This instructs us to
agreement arising out of the Jobs Summit signifies the desire of business, labour
build an inclusive economy. Global economic history
and government to work together to tackle unemployment. Private investment is also
teaches us that an economy that creates value in
set to emerge from the slump of the recent past, with some significant investment
extractive and exclusionary ways breeds social instability,
pledges announced at the Investment Conference held in October last year.
destroys the planet and steals from future generations.
Yet this newfound sense of direction and energy risks being overwhelmed by the
In responding to short-term challenges while developing
effects of the past. In the first two quarters of last year, the economy suffered a
a long-term growth strategy, social partners – including
contraction. This came about as the result of a confluence of factors, with the prospects of emerging markets under scrutiny as crises unfolded in peer countries
business – need to keep the end-state in mind. In reading all the voluminous body of texts attempting to
such as Turkey and Argentina. The failure to stage a decisive recovery from the
influence the economy’s trajectory, from the Constitution
Great Recession means that our economy lacks the resilience to weather high oil
and the National Development Plan to the national
prices, brewing trade wars and negative global sentiment.
budget, monetary policy statements and company annual reports, one sees the common thread of a nation
The negative macro-economic trends that played out in the second and
aspiring to sustainable, inclusive growth. This end-state
third quarter of 2018 add to the odious economy legacy that keeps potential
eludes us for many reasons, including those related to
growth low. The structural underpinnings of the economy, with its high levels of
implementation and co-ordination. One of the greatest
concentration, inequality and exclusion constrain growth.
achievements that can come from this era of change is to reaffirm our commitment to a just and prosperous
In the face of the foregoing analysis, there is a tendency for the difficulties to
economy and to pursue, relentlessly, priority initiatives
overwhelm the progress that is underway.
that enable investment and create jobs. In so doing, we will turn that commitment into a reality.
At times like this, it is important to step back and turn to a constructive lens through which to assess the economy. We will never have the luxury of a blank state. That being said, we need to develop a shared understanding of the principles on which to build the South African economy of the future.
Trudi Makhaya Advisory Board Member: KASI Insight Presidential Economic Adviser
TOP500 10th Edition 11
