Nicola Mawson
South Africa’s partnership between the government and the private sector, with phase two launched last night, has set itself the “stretch goal” of adding a million new jobs to the economy through adding 3% to gross domestic product (GDP) growth by 2025.
The initial partnership was established in June last year to tackle the electricity supply crisis, the severe challenges in freight rail and port operations, and crime and corruption. These areas were identified as the most immediate obstacles to faster growth and job creation and resolving them was set to enable economic growth.
Some 140 companies, with those listed being worth R11 trillion, representing 136 million employees are represented through the partnership.
Addressing an audience of business leaders last night, President Cyril Ramaphosa, said: “If we can achieve, as we must, rapid economic growth, we will be able to create jobs and reduce poverty among our people.”
Reflecting on the past year and three months, the President said: “Look at where we are today, with all of you collaborating.”
Ramaphosa added that, “this partnership has worked very well to mobilise skills, expertise, and goodwill that exists in this country to grow the country and create jobs”.
The Government of National Unity is fully committed to following through on the reform agenda to place South Africa on a new trajectory, said Ramaphosa, while acknowledging that there were challenges, including an “unsustainable” unemployment level.
Discovery CEO and co-convenor of the business delegation, Adrian Gore, said the programme has “been an unequivocal success. We’ve come a long way in just a year.”
Gore added that the architecture was about bringing CEOs to the forefront and getting them to “pledge to the potential of the country”.
In this second phase, Gore said, participants would target the same areas of logistics, energy, and crime, seeking to achieve three percent in GDP growth by 2025, a million extra jobs, and an additional 4GW of renewable energy added to the grid.
He explained that the process in phase two would be a virtuous circle of positive sentiment, job growth, and economic growth.
“Our strong view is getting the cycle to turn is the focus on jobs, growth, and narrative,” Gore said.
“Getting over three percent is very important. The question is, can we do it. We think we can, and that’s the stretch. I hope phase two is setting out stretch goals. The prize is big. We are committed to doing it.”
Gore said “we can make a difference collectively quickly. It’s a fantastic model… we’re now in a different position in the country, things feel completely different.” South Africa’s problematic logistics systems, crime, and energy situation have seriously cost the economy, he said.
Business 4 South Africa (B4SA) chair, Martin Kingston, noted that the first phase had focused on areas where the partners felt the most meaningful changes could be made.
“There was enormous pressure to increase the number of [focus] areas, although we have been steadfast. We may expand that going forward,” he said.
Kingston added that, getting South Africa off the greylist around 2025, would increase foreign direct investment and reduce the cost of financing.
He explained that the private sector had been assisting the prosecution of complex criminal cases through providing capacity and expertise such as in forensic analysis without detracting from its independence.
There needs to be, Kingston said, a particular focus on youth unemployment, which is a significant challenge.
“These targets we are talking about, we hold ourselves to as a partnership. All of this requires commitment and momentum of resources if we are to succeed with phase two.”
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