Wrong policies are SA’s problem

CHRISTO WIESE: NOTHING IS STRUCTURALLY WRONG ‘There is no reason to believe that in this dark night, there won’t be a dawn again.’

Attempts to find practical solutions to SA’s social and economic challenges have been futile simply because the wrong questions have been asked, according to Shoprite chairperson Dr Christo Wiese.

In the group’s annual report, published on Friday, he says: “There is nothing structurally wrong with South Africa. The issue is that we are not following the policies that could so easily make life so much better for all South Africans.”

He says the right question isn’t what do our people want or need, but what can our people not do without?

“The answer is self-evident – our people need jobs. Once we arrive at that answer, then everything else falls into place.

“Everything our government does should be determined by whether it creates or destroys jobs,” says Wiese.

“If guided by this test, we will arrive at the right solutions and focus on implementing policies and actions which bring more people into the economy.”

He says there’s “little doubt the absence of growth in the economy is putting South African consumers under enormous pressure. In the course of our work in the communities in which we operate, we are constantly aware of heightened levels of financial distress.”

While the Reserve Bank’s decision to cut interest rates and government’s new Inclusive Growth Action Plan are a start, Wiese argues this isn’t nearly enough.

“With a GDP growth outlook of less than 1% at best, and with our foreign currency debt downgraded to junk, these steps are widely acknowledged as palliative in a situation where intensive care is required, coupled with innovative thinking.

“At the heart of SA’s challenges is widening income disparity caused by rampant unemployment and poor education.

“The unemployment rate for the first quarter of 2017 was 27.7%, the highest it has been in 14 years.

“Of more concern is an unemployment rate among 15- to 34-year-olds of 38.6%.

“Various local and international organisations estimate South Africa’s youth unemployment at over 50%.”

Note, he’s not overly bearish or negative. In an interview with

Moneyweb’s Ryk van Niekerk this year, Wiese offered a useful perspective that we easily forget: “In my opinion, in the last 50 years, South Africa has been through tougher times than we’re currently experiencing.

“There is no reason to believe that in this dark night, there won’t be a dawn again. Things will be better again.”

“Problems are everywhere in the world. Our problems, in my opinion, are relatively easy to solve, if we start using our heads.”