This month, our country hosted two seminal conferences that starkly demonstrated South Africa's paradox of constraint and opportunity.
These were the fifth edition of the South Africa Investment Conference and the African Continental Free Trade Area (AfCFTA) Business Forum. Both conferences provided an opportunity for us to put out best foot forward.
One of the most immediate positives from the recent events is the demonstration of our ability to attract summits of international relevance as we continue to feature strongly on the diplomatic map.
We will host the Brics summit in August, with some 20 heads of state and several political and business heavyweights expected to attend, and we are scheduled to host the G20 summit in 2025. South Africa is the only African country in Brics and the G20, a unique position that comes with immense opportunities.
In these times of significant global geopolitical shift, the G20 has become a prominent global forum for international economic co-operation. It is increasingly important in shaping and influencing global economies' architecture and governance. Put differently, South Africa still matters and has relevance or these summits would not feature in our country.
Given the constraints and bottlenecks we face, the question arises as to whether we can optimise the immense currency and capital these high-profile events present. As an active participant at the investment conference and the business forum, I can provide some perspective.
A good start is that both conferences, the first at the Sandton Convention Centre and the second at the Cape Town International Convention Centre, were seamlessly executed. Several foreign delegates remarked on the quality of our conferencing, hotel and leisure industries. Expressions like “good value for money” frequently crossed their lips. All this confirmed our strengths, which we must continue harnessing for the tourism sector and the broader economy.
We cannot shy away from the challenges, constraints and bottlenecks: energy security, infrastructure, red tape and administrative burdens, corruption, security and crime all feature.
One can sense the despair and despondency afflicting South Africans daily. As a result of the overwhelming nature of the challenges, we can be our own worst enemies by focusing on the negatives when interacting with investors.
Due to the information superhighway, existing and prospective investors are as aware of these constraints as ordinary South Africans. However, in my experience, they also realise the tremendous potential in our country and how this can be realised if we fix some of the basics.
One thing investors are unanimous on is that we need to up our pace, execution and consistency in policy implementation
Some international partners feel the country is moving in the right direction. However, they lament the pace of execution and lack of capacity to implement policies, all costing us dearly. There is a strong case for talking up our potential in the same breath as our plans to deal with the constraints.
Some of the constraints can be turned into opportunities. An example is the energy crisis and the option of solar, wind and other energy technologies.
One thing investors are unanimous on is that we need to up our pace, execution and consistency in policy implementation. We also need to improve the ease of doing business. Capital is agnostic and goes where it is likely to encounter the most consistent and predictable environment.
Investors want to hear us talk up our prospects but also want us to start dealing coherently and constructively with the constraints.
This will require the public and private sectors to work together with one common purpose. That would be to combine our joint capacity, expertise and skills to grow the economy and start realising its potential.
As the business sector, we must constructively engage with all the social partners in a way that holds the government accountable on the one hand, but on the other drives a partnership with the state that provides capacity for mutual growth.
The success of this type of co-operation between the private sector and the state is well recorded. In the fight against Covid, we partnered to set up the immensely successful Solidarity Fund, the procurement of life-saving equipment and a highly effective vaccine rollout programme in which the private sector made available its resources to both public and private patients. This is a well-rehearsed model and an excellent blueprint.
My big takeouts from these two conferences are the following: South Africa still matters and is globally relevant. With the right corrective measures, investors still think we can unlock our economic potential.
This potential can only be realised if we accelerate the pace and execution of structural reform. Pace and execution require capacity. The private sector stands poised, even in the highly traumatic areas of safety and security, to assist.
Working jointly, we have a good track record but need to drive a common purpose with clear goals.
Without being blindly optimistic and without minimising the underlying challenges, we need to recalibrate some of our personal and country narratives towards turning challenges and constraints into realisable potential. We can't permanently talk down our prospects.
I take comfort from the fact that the world still sees our relevance, and I'm certain we will continue to execute all these summits with aplomb.
However, the ball remains very much in our court as to whether we can convince investors on the pace and execution of our structural reforms. Let's not leave them wondering. Instead, we should pull together to ensure our country realises the economic potential it and its citizens deserve.
* Nicolaou is a group senior executive at Aspen Pharmacare, a board member of Busa and a Brics business council member
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