Business, be a force for good

After several years of weak growth and rising unemployment, news that the private sector has pledged to invest nearly R290-billion in the South African economy shows a clear willingness by business to create jobs and stimulate economic growth.

But we need a drastic change of approach if we are to maximise the effect of these investments.

Historically, South Africa has a poor track record for converting investment into inclusive growth.

Even during the “good” years, when the economy was experiencing growth in excess of 5%, unemployment and inequality remained stubbornly high.

Much of this has to do with a mismatch of skills in the labour market. This has been exacerbated by a failing public education system in which fewer than half of South Africans pass matric and only 6% of young people get some form of tertiary qualification within six years of matriculating.

The 2018 Business Contribution Index (BCI) tracks the direct and indirect contribution made to the economy by various sectors and found that the private sector is collectively the most important contributor to economic growth and prosperity in South Africa. It’s also the biggest employer.

By understanding the essential role that business plays in generating economic opportunity in South Africa, the BCI shows how we can leverage that role and amplify its effects for the benefit of the wider economy — and ourselves — by improving financial inclusion and developing practical skills and capacity in our younger employees towards transformed and empowered futures.

On their own these investments may seem relatively insignificant, but it is as a collective that their true effect will be felt.

We are committed to using business as a force for good and hope that others will examine their own contribution.