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‘No need for us to be a failed state’: How SA can power back up in 2017

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The past year has been a gruelling one for business, civil society and South Africa’s young democracy.

But the country has proved its resilience and ability to rise to a challenge.

Anemic economic growth, persistent unemployment, continued political uncertainty and unrest at institutions of higher learning are among the concerns likely to shape 2017.

These issues facing the country were contemplated by a panel of leaders from business, academia, government and civil society who gathered at Gibs to discuss the year that was.

Economic Outlook

“We shouldn’t be surprised that our economy is stuck; its structure has been inappropriate for some time,” Jabu Mabuza, chairperson of the board of directors of Telkom SA and president of Business Unity South Africa, said.

Mabuza called the pace of transformation of the economy “nauseatingly slow”.

“Most business people don’t understand or embrace the need to transform. Business must continue to see its role beyond just the narrow pursuit of profit, and participate as a member of society.”

Cas Coovadia, managing director of the Banking Association of South Africa said the country’s financial services institutions were well positioned to play a financial intermediation role in the economy, with good business models and liquidity.

However, he said the lack of a favourable investment environment was holding the sector back.

“We must see the banking sector as a national asset. It is globally connected and at the cutting edge of international best practice when it comes to regulation. There has been a lot of noise around the regulation of financial services, which we have to guard against,” he warned.


The importance of civil society

Mark Heywood, executive director of Section27 and member of Save South Africa, said 2016 had seen an unprecedented challenge of the legitimacy of the traditional sites of authority in politics, business and academia.

“We are all culpable in the crisis that is engulfing ordinary people,” he said.

Society had started to notice the important role civil society could play: “We are able to demonstrate that there are ways to fix our current social ills. There are some solutions to be found that can hold out hope to people, and incremental improvements that can be made to help to restore hope and legitimacy.”


A way forward for institutions of higher learning?

Vice-chancellor and principal of the University of Pretoria, Professor Cheryl de la Rey, said fee protests and disruptions at institutions of higher learning had made 2016 an exceptionally difficult year.

“The two issues of transformation and funding have still not been resolved. But there is an enormous goodwill,” she said.

A new funding model, relying heavily on investment from the private sector and state-owned institutions, as well as contribution from government, would be piloted next year in an attempt to solve the fees crisis. “If this works, I feel we may have the beginnings of a sustainable way forward,” De la Rey said.


A year of continued political uncertainty

A growing number of voices from all sectors of society called on President Jacob Zuma to step down from office throughout the year. While Heywood admitted his removal would not solve all of the country’s problems.

“Getting rid of President Zuma is now a prerequisite for beginning deep change to this country and for putting this country back on track.

“We are very close to becoming a failed state, because of a failed president. And yet there is absolutely no need for us to be a failed state. We have people in government of whom we can be extremely proud. These are great people, capable of leading our country and unifying our country. Instead, we have a president who is dividing us and demoralising us, and corrupting us.”

Following the numerous high profile political court cases that marked the year, Pierre de Vos, Claude Leon Foundation Chair in Constitutional Governance at the University of Cape Town, warned there was a danger of over-reliance on the judiciary to maintain our democracy.

“There is a risk that people become demobilised, and begin to think that politics can only happen in the courts, instead of coming together to solve our problems.”

Gauteng Finance MEC Barbara Creecy told the gathering it was important for those who hold public office to “re-establish the connection with those we serve to reinstate trust with our electorate.”

She said ethical spending of the public purse was one way to restore faith: “We have to govern differently and make a difference in people’s lives at a local level.”


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