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The road ahead: Social cohesion for a secure future

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As South Africa celebrates a generation of freedom, Anglo American acknowledges its deep roots in the country and looks ahead to its contribution in the next 25 years and beyond. Experience 25 Reasons to Believe with City Press as we explore the economy, job creation, enterprise development, health, land reform, sustainability, education, technology and – most important of all – the communities

BUILDING THRIVING COMMUNITIES:

Earlier this year, President Cyril Ramaphosa outlined 10 value-creating principles for a modern, successful and productive mining industry. Anglo American has aligned them to its existing social initiatives:

1. Investing in education and training

2. Partnering with training colleges

3. Prioritising the development of young women

4. Investing in the overall health and safety of workers

5. Fostering inclusive growth

6. Partnering with local governments to improve infrastructure in the areas where we operate

7. Investing in the living conditions of workers

8. Providing internships and job experience opportunities for young people – as well as providing business opportunities for SMMEs

9. Including workers in our shareholding

10. Embracing beneficiation

Over the past few years, South Africa has confronted many serious challenges that take on different forms in our fractured society.

Many South Africans are affected adversely by violence and crime, discrimination, unemployment – which now hovers at about 27% – and poor access to opportunities, resulting in generational poverty.

It was against the backdrop of these social challenges, compounded by the lack of trust between key social partners, that the Indlulamithi SA Scenarios 2030 project was formed. The project considered the key question: “What would a socially cohesive South Africa look like, and to what degree is it attainable by 2030?”

When Indlulamithi SA Scenarios 2030 refers to social cohesion, it envisions a process of social integration and inclusion in our communities and society at large.

When Indlulamithi SA Scenarios 2030 refers to social cohesion, it envisions a process of social integration and inclusion in our communities and society at large. This is a process that promotes mutual solidarity and acceptance among individuals and communities.

The concept of a social compact is also captured in our Constitution, with its emphasis on healing the divisions of the past, and establishing a society based on democratic values, social justice and fundamental human rights.

One of the underpinnings of Indlulamithi is that South Africa’s economic future is inseparably linked with its levels of social cohesion. As a diverse country with generational burdens of division and inequality, South Africa depends on this cohesion for progress. Without it, many of the country’s social, economic and political developments will flounder.

CAN WE CHANGE COURSE?

One scenario that is outlined in Indlulamithi is the Nayi le Walk scenario – one where a pro-poor economic path leads to an average growth of 5.74%; unemployment drops to 12.3%; and poverty reduces by two-thirds to 13%.

Although this may seem impossible in the face of our current growth trajectory, Indlulamithi’s economic modelling demonstrates that a revision of the country’s current micro and macroeconomic policies is necessary to achieve such growth. In addition, extensive collaboration between business, labour, civil society and government will be crucial in overcoming the socioeconomic development challenges South Africa is facing.

Although this may seem impossible in the face of our current growth trajectory, Indlulamithi’s economic modelling demonstrates that a revision of the country’s current micro and macroeconomic policies is necessary to achieve such growth.

The Nayi le Walk scenario demonstrates that we can all have a piece of the pie – even poor and marginalised communities would benefit from the country’s economic growth.

However, there is no silver bullet. It is evident that, as a country, we urgently need to adopt more transformative economic growth strategies that address the root causes of inequality and inclusivity.

Importantly, these growth strategies need to ensure ever more South Africans benefit from such growth.

If we do not adopt these measures and improve the basic underlying welfare of the majority of citizens, we can anticipate an average economic growth of below 2% and an unemployment rate of 26% in the next 10 years. Such low levels of growth can only lead to a society that is further demoralised, and characterised by disorder and decay.

Andile Sangqu is executive head of Anglo American SA and chairperson of Indlulamithi SA Scenarios 2030

Visit https://sascenarios2030.co.za/ to learn more about Indlulamithi SA Scenarios 2030

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