Sacci: South Africa needs to stop the excuses and fix growth

South Africa's economy faces critical challenges, with growth stalling at less than 1% amid slumps in agriculture and persistent structural issues. The South African Chamber of Commerce and Industry (Sacci) warns against blaming corruption alone, urging a deeper probe into fiscal, monetary, and private sector dynamics. Despite initiatives like Operation Vulindlela targeting energy and infrastructure, progress remains slow. Leadership development and unlocking broader economic potential are key to tackling inequality and unemployment..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..By Monique Vanek.South Africa needs to stop finding excuses for its underperforming economy and examine the root causes, a local commerce group said.."Whilst there are many attempts to explain the negative environment, it is becoming increasingly clear that South Africa is struggling to bed down its recovery program," the South African Chamber of Commerce and Industry said in a statement Thursday in response to recent gross domestic product data..South Africa's economy unexpectedly contracted in the third quarter, after the agriculture sector slumped the most in at least 31 years. The outcome suggests it may again grow at less than 1% this year, a rate it has averaged for the past decade..The slump took place even as a new government formed by the African National Congress with nine rivals, after it lost its parliamentary majority in May elections, has continued to initiate key reforms to address economic, energy and governance challenges facing South Africa. .Notable efforts include stabilizing the electricity grid through private investment and renewable energy projects, as well as modernizing logistics and water infrastructure with the aid of a government unit responsible for structural reforms called Operation Vulindlela..The body said that while it recognized the apparently good work of programs such as Operation Vulindlela to unlock some of the blockades, it may not be enough to solve high levels of unemployment, inequality and poverty..Read more: How to fix South Africa's broken economy – Frans Rautenbach, author of Help Yourself South Africa.Lack of Progress."It is now time to get all of South Africa investigating the real issues behind the lack of progress," Sacci said. "The dogma that it is only state corruption may be robbing South Africa of an incisive and diligent appraisal of the entire ecosystem, including the role of the fiscal and monetary authorities.".South Africa has frequently attributed its economic failures — including logistics constraints and a collapse in water infrastructure — to graft that became endemic during former President Jacob Zuma's almost nine-year rule. ."Both India and China have been growing at higher rates, notwithstanding the fact that their corruption perception index rating is not that dissimilar to that of South Africa," the lobby group said. .South Africa ranks 83 out of 180 nations on Transparency International's corruption perception index. China is at 76 and India 93. .Alongside corruption, other issues also need to be looked at, such as the role of the private sector, including leadership development, Sacci said. "Unlike our Chinese and Indian counterparts, we lack the critical mass of private sector leaders who are global in outlook and in particular are intimate with the opportunities in our own continent and beyond.".Read also:.The man at my bin: Can welfare sustain South Africa's future? – Anlu KeeveJohann Rupert urges action to save AGOA for South AfricaJohn Endres: Who wins Gauteng will decide South Africa's future.© 2024 Bloomberg L.P.

Sacci: South Africa needs to stop the excuses and fix growth

Related Stories

Business Day investigation exposes SA's massive illegal number plate crisis

The R24 billion debt crisis ruining SA universities

CR's troubles - South Africa's investment case is about to be rewritten

Reversing 19 years of decline - Moody’s watershed moment on SA sovereign debt