The economic environment and change.

Written by Lynelle Clark

On 14 March 2024, under the supervision of Daily Maverick’s MC, Rebecca Davis, senior journalist, leaders came together for a robust dialogue.

Rebecca Davis had her work cut out for her, which she did with sophisticated flair.

Even from an online point of view, one noticed the level of professionalism the conference held. In partnership with Ninety One, Pick a Pay ASAP, The Friedrich Naumann Foundation and Henley Business School, it was an enormous success.

The Gathering Twenty Twenty-Four conference had six panels which touched on fundamental questions in our society. But I will focus on what the economists had to say about South Africa’s current economic environment.

With the elections around the corner, we are holding our breath for the outcome. The 2024 election is a turning point, and as important as that of the 1994 election.

South Africans are ready for change.

We pray for change.

Desire change.

But the question is, are we ready for change?

The right mindset to change is the key.

But the question that carries the most weight is, do we have skilled leadership?

The narrative of the panel was: “How do you give an economist the jitters? Tell them an election is coming. Low levels of short-term confidence and certainty represent a risk to prospective investors. What’s the possible long-term gain of a “change”? And what (realistic) political scenario is most conducive to the business environment?”

We are not unfamiliar with the term A vote of No-Confidence. In the political sphere, it is a common characteristic on provincial and national level. Economic uncertainty and the continuous breakdown of systems and dissolvents of institutions have marked our economy in a terrible light.

Investors are pulling out; skilled people are leaving, and our education system fails the next generation. South Africa cannot afford another four years of this trend. Change must happen. Unless we do not face the facts, it will continue on a downward spiral. And who will pay the price? You and me.

Dr Iraj Abedian, founder and CEO of Pan-African Capital Holdings, “Economy does not operate in a vacuum. It requires at least two complementary solid foundations. One is the regulatory environment within which different businesses have to operate. And, it requires another important complementary pillar, a political system that is accum to the needs of the economy.”

In layperson’s terms; we need governing stability to grow. As Dr Abedian stated, the money is there, but we, as South Africans, must show the international investors that we are credible. That we believe in ourselves and act as a democratic country.

During the discussion, it was stressed that unemployment is a human resource problem. The human resource training is no longer effective and is stuck in old ways of thinking. It needs to change. We are short of skills. Whether it is an electrician, an engineer, a doctor, or a bricklayer, we need up-to-date skills.

Skills must translate to the ability of the application.

Dr Abedian said, “The age of certification are gone.” We must question the titles; if it does not translate to the ability to lead, then we must strip the title bearer. If they cannot do the job or are not honourable, they must be removed.

Capability is a must.

Accountability is a must.

Without it, we will not survive.

Old leadership must be replaced with new thinking. “We need a 45-year-old president.” Said Mark Barnes, former CEO, SA Post Office. “Africa is the undiscovered opportunity.”

We must think individual first.

Another problem we have is unskilled labourers. The unskilled labourer cannot be ignored. They need to work. They have to eat. They must pay rent. By giving them an opportunity, we help them to get ahead.

Skills are important, but for the unskilled worker, even if it is the first job at a factory, it is their chance at schooling. Schooling is necessary to change their situation for the better. Stated Ann Bernstein, founder and executive director of the Centre for Development and Enterprise (CDE).

What can the average person do for change? Vote. Vote for a difference. Do not vote for the same party. Especially if they haven’t produced.

The current government has impoverished this country. In 1994, they wanted to change the lives of every black citizen, but that didn’t happen. Currently, we have the highest unemployment rate in the world. 

We can only bring change when we stand together.

The political environment that will be conducive for the economic environment is: There is no shortage of money, there is no shortage of investors. There is no shortage of opportunities. The funds are waiting but we need credibility of the election process and the attraction of economic resources. The government must understand how the economy function. Because of lack of knowledge, they don’t know what is going on in the current market. We need a government that understands the markets. We are not attractive enough. Ignorance is bliss, is no longer an excuse. The second thing is infrastructure upgrading. Our infrastructure needs radical change. Our roads, railways, aviation, ports, bridges—everything needs an upgrade.

A new attitude towards the private sector and how they work is needed. Only when we stand together is change possible.

South Africa needs a government that has everyone on their mind and not only their party members. When the elect is in the Office of the President, he/she cannot think party but people first.

We have to understand each other to co-inside within a new cultural environment. We need commercial vividity. If we do not set aside our own way of thinking and think community, individual first, all the talk will not be enough to bring change.

South Africa is waiting for us.

Are we up for the challenge to change? 

Copyright Lynelle Clark 2024