How can SA move from rhetoric to action?

SA cannot afford another year of empty promises.

The president spoke eloquently in his state of the nation address (Sona) of hope and progress, and outlined new initiatives to shake economic growth out of its torpor, including infrastructure investments totalling more than R940bn over three years, public sector reform and anti-corruption measures.

But for many South Africans the Sona felt more like a laundry list of recycled promises. Less a road map to a better future and more a carefully crafted performance designed to appeal to the broad spectrum of the political landscape — with an eye too, on the international investment community. But can we afford to be middle-of-the-road at this critical juncture?

Yes, collaboration and statesmanship are necessary, but we also need action — and fast. Especially as we now have a veritable geopolitical storm raging around us. If we don’t enact real transformation and find our feet in the global world order, we risk becoming a political football, kicked to the sidelines.

SA’s G20 presidency gives us an unprecedented opportunity to take control of — and change — the narrative. World business leaders have converged on Cape Town for the opening event of the Business 20 (B20) summit as part of SA’s G20 presidency to develop policy recommendations on areas from trade enhancement, infrastructure development and sustainable energy transitions to food security, to influence G20 deliberations.

Aside from this being an opportunity to showcase African leadership and excellence on the world stage, what will SA leaders put on the table that can really change the fortunes of this country? At a recent post-Sona seminar hosted by the Black Management Forum, Henley Business School and Alexforbes, with panellists Bonang Mohale, Mpho Molopyane and Rutendo Hwindingwi, three key issues were flagged: capability building, tackling crime and corruption, and boosting accountability.

Job creation alone won’t save the economy

The economy can create all the jobs in the world, but without relevant skills development we won’t have anyone to fill them. Just about all of SA’s woes can be traced back to the critical need for capacity building. Transformation cannot be merely a slogan; it must be rooted in skills development, capability building and opening doors of opportunity for all South Africans. This requires dismantling the structural barriers that perpetuate economic inequality, including the entrenched dominance of oligarchs in key industries.

Breaking down these patterns and expanding the economic pie will require a concerted effort not just to boost economic growth to above 3%, as the president suggested, by fostering a more competitive business environment and nurturing the growth of globally competitive companies in strategic sectors, but also in making sure that this reaches the informal economy and the disenfranchised. For instance, can we work together to really empower the township economy, perhaps through the professionalisation of the spaza sector, for example? Furthermore, can we find ways to capacitate South Africans to deliver world-class business services to the rest of the world without leaving the continent?

Stolen money is wasted money

President Cyril Ramaphosa announced aims to strengthen whistle-blower protections and enforcement against financial crimes as part of broader anti-corruption efforts in SA, but critics question whether this goes far enough. Leaving aside the question of corruption at the state level, SA is also seeing an alarming rise in crime, particularly within the business community.

This is increasing the cost of doing business and harming the country's investment ratings, which in turn erodes economic growth and stability. With the US president recently signing an executive order that pauses the enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits bribery of foreign officials by US companies, we can expect to see an escalation in international corruption, which can only end badly for African economies if we are unprepared on our end.

This is why organisations such as Business Leadership SA and Business Unity SA are rightly prioritising this issue, and together with government we all need to work to develop and implement effective strategies to combat crime and corruption at every level. Equally important, however, is to move beyond the rhetoric and focus on productivity.

We need to build companies that work efficiently and effectively. This would include ensuring that lousy managers and leaders are replaced with competent, capable and ethical people. Productivity brings transparency, and transparency drives out corruption. If we are not prepared to act, then all the measures in the world won’t change the outcome.

Without accountability, we are just kicking the can down the road

Africa is rightly proud of its philosophy of ubuntu. But as Dr Hwindingwi says, without action, ubuntu is just “kumbaya”. We need clear, measurable targets to hold the government accountable to ensure that Sona promises don’t become just another exercise in kicking the can down the road. How can we strengthen oversight bodies and enhance transparency while also making sure that these crimes are detected and the perpetrators punished? 

Business, too, needs to shoulder its fair share of accountability. Are we aligning with corporate governance codes and training our leaders to be ethical and wise? SA is not a poor country, but a poorly managed one. The challenges we face lie in getting the right resources to the right (skilled) people at the right time.

The shocking revelation that 127 KwaZulu-Natal government officials cannot read or write, alongside the fact that only a third of SA municipalities received clean audits, underscores the scale of the problem. This, coupled with the excessive number of deputy ministers in the government of national unity, points to a bloated and inefficient state apparatus all of which are issues that we need to tackle.

The clock is ticking, and the window of opportunity for meaningful change is shrinking. That we get this right is vital, not just for our own country but for Africa as a whole. SA is the largest economy on the continent, responsible for about 20% of intra-African trade. If we fall, Africa falls.

This isn’t a time for grandstanding or divisive rhetoric but for wise heads and collaborative and courageous action. It’s up to us to create our brave new world, and it starts with investing in each other.

• Ndlovu is MD of the Black Management Forum and an alumnus of Henley Business School Africa. Foster-Pedley is dean and director of Henley, chair of the Association of African Business Schools, and former chair of the British Chamber of Business in Southern Africa.