{"id":794555,"date":"2024-10-10T07:00:00","date_gmt":"2024-10-10T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=794555"},"modified":"2024-10-11T07:22:51","modified_gmt":"2024-10-11T05:22:51","slug":"what-south-africa-needs-to-learn-from-countries-like-india","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/794555\/what-south-africa-needs-to-learn-from-countries-like-india\/","title":{"rendered":"What South Africa needs to learn from countries like India"},"content":{"rendered":"\n

Several business leaders have expressed cautious optimism about the new Government of National Unity (GNU); however, stressed the need for the government to create an environment that allows private businesses to do what they need to do.<\/p>\n\n\n\n

They emphasised the importance of both parties consistently and actively working together to ensure that the goal of proper economic growth is achieved.<\/p>\n\n\n\n

Speaking at the annual summit of the Consumer Goods Council of South Africa (CGCSA) on 9 October, co-chairman of CGCSA Gareth Ackerman presented this view and echoed other government and business leaders<\/strong><\/a> in the calls and commitments for closer collaboration between business and the government.<\/p>\n\n\n\n

Ackerman said that a capable government open to working with the private sector would be critical to growing the economy, citing that GDP growth has been lackluster, averaging below 1% for the past decade.<\/p>\n\n\n\n

\u201cWe have a long way to go, and the last decade or more we have regressed economically, and growth has averaged about 2%, yet we actually need growth of 7%,” said Ackerman.<\/p>\n\n\n\n

“We need a mindset change in government and to learn from countries such as India, which has defined the role of government versus the private sector. Government should set policies and let the private sector implement them<\/strong>,\u201d he added.<\/p>\n\n\n\n

Ackerman expressed a sense of cautious optimism about the GNU, acknowledging that it is still early days. However, he highlighted positive strides departments like Home Affairs, where visa and permit backlogs are being addressed.<\/p>\n\n\n\n

He emphasised that collaboration between the public and private sectors is crucial for tackling the country\u2019s economic challenges.<\/p>\n\n\n\n

He pointed to the uninterrupted power supply maintained for over four months as an example, which showcases the success of the partnership among Eskom, businesses, and the government. Similar efforts extend to issues like crime, job creation, and infrastructure.<\/p>\n\n\n\n

\u201cThings are coming back slowly with the GNU, and I hope it will be positive for the economy, and this will allow the consumer goods sector to grow, which is good for the economy.”<\/p>\n\n\n\n

“We need to allow and enable the private sector to invest within the policy and regulatory framework,\u201d he added.<\/p>\n\n\n\n

The CGCSA co-chairman said the past year was particularly difficult not only for the sector but for the economy, mainly due to load shedding and infrastructure bottlenecks.<\/p>\n\n\n\n

But, where there is a will, there is a way and he called on businesses to do what they can within the communities they operate, such as investing in repairing and maintaining infrastructure.<\/p>\n\n\n\n

\u201cWe as businesses have the power to do something, and these are things businesses can fix,\u201d Ackerman concluded.<\/p>\n\n\n\n

Speaking at the same summit, Business Leadership South Africa CEO Busisiwe Mavuso stressed the need for government to demonstrate urgency to prioritise resolving structural issues facing the economy, including resolving logistics, water and energy issues. <\/p>\n\n\n\n

She warned that while South Africa is not yet a failed state, it can be if these basics are not addressed. <\/p>\n\n\n\n

\u201cThe country needs to turn the corner; it is about 65 million, it is about 43% unemployment when you use the expanded definition of unemployment, and it is about 65% youth unemployment, which is the biggest risk as a country,\u201d Mavuso said.<\/p>\n\n\n\n

These calls have not fallen on deaf ears.<\/p>\n\n\n\n

On 1 October, President Cyril Ramaphosa, ministers and some of South Africa\u2019s top CEOs launched Phase 2 of the Government Business Partnership.<\/p>\n\n\n\n

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The big plan to grow South Africa’s economy by at least 3%<\/a><\/blockquote>