Africa could be an engine for SA’s growth

President Cyril Ramaphosa has brought back hope that the promise of our 1996 Constitution is possible. South Africans across political ideologies, class, race, colour and creed are talking about a new beginning reminiscent of the first transition of 1994.

Ramaphosa did not disappoint in his state of the nation address by delivering an inclusive, forward-looking speech, reminiscent of Nelson Mandela. Recognising how state capture, fake news and lies had dominated our society, Ramaphosa reminded us of the tenets of our 1996 Constitution — particularly that SA belongs to all who live in her, black and white.

Every word in the speech resonated as if he was talking to us as individuals. As I answer the calling to partake in the reconstruction and development of SA, I would like to encourage Ramaphosa to also look beyond our borders.

There is a lucrative market of 2-billion (by 2050) people that is on our doorstep. This market is literally for the taking and could be an engine for SA’s growth through exports.

Japan, through its “flying geese” strategy and the Asian Tigers are examples of how one country’s success can be replicated and sustained next door. This phenomenon can also be seen with respect to China as she moves her production capacity to countries such as Vietnam and Myanmar.

There is a huge opportunity for SA to anchor the development of Africa and particularly capitalise on the extensive infrastructure buildup that is under way.

For instance, only 38% of the African population has access to electricity, the penetration rate for internet is less than 10% and only a quarter of Africa’s road network is paved. Studies have shown that poor road, rail and port facilities add 30%-40% to the costs of goods traded among African countries.

SA should harness its unique position and leverage its combination of funding capacity and expertise, including a better assessment of the risk and technical expertise. The knowledge accumulated in the Renewable Energy Independent Power Producer Procurement Programme could be shared with the rest of the continent.

While SA’s current economic growth potential remains constrained at 3%, an outwardlooking economic strategy could drive that potential to 7%9%. In the consultation processes with various stakeholders as part of Ramaphosa’s 12 priorities, many South African companies will have the opportunity to share their strategies, emphasising the urgency of anchoring Africa’s development.

An area of concern for Ramaphosa that could undermine his plan and dent the optimism in the country is the ANC itself. He needs to take the governing party along with him.

Yet some of his comrades have been part of repurposing the state for private benefit. The ANC has also been comfortable with supporting those who put the ANC first, before the country.

The affirmation of incompetent ministers such as Mosebenzi Zwane and undermining of those with capability, such as Mcebisi Jonas, needs to be corrected. South Africans will not forget the words of Nomvula Mokonyane when Pravin Gordhan was fired: the rand can fall, we will pick it up.

For Ramaphosa and SA to succeed, the transformation of the ANC is a prerequisite.

This requires modernising the party to become a competent constitutional organisation that puts the interests of SA first. Knowledgeable, capable and ethical members must be appointed to senior positions in government. As long as the focus of the ANC is unity, it will not be easy. Without transformation in the governing party, Ramaphosa will fail, and so will SA.