EDITORIAL | From this crossroads, South Africa must choose its economic path wisely

This past weekend, the Kgalema Motlanthe Foundation hosted a forum to discuss South Africa’s future. Several high-profile speakers, including SA Reserve Bank governor Lesetja Kganyago, MTN Group chair and former deputy finance minister Mcebisi Jonas and The Rivonia Circle chair and former Business Day editor Songezo Zibi spoke honestly and frankly about the country’s dire situation.

Incidentally, on this same weekend, where the phrase “state capture” often featured, President Cyril Ramaphosa addressed the nation on chief justice Raymond Zondo’s report.

Ramaphosa took some time to unveil the plan of action on the state capture report, authored by Zondo, who chaired the commission of inquiry. The president’s deadline to respond was October 15, but a delay caused by Zondo meant South Africa would only get feedback a week later. Ramaphosa has assured his countrymen “the political will is there” to implement the recommendations from the inquiry that looked into allegations of state capture, corruption and fraud in the public sector, including organs of state. This is crucial work and goes hand in hand with what leaders discussed at the Drakensberg Inclusive Growth Forum. 

The truth of the matter is that there needs to be hard work, driven by the people in this room in partnership with civil society, business, religious leaders, youth and labour to develop a new national vision and agenda for change.

—  Mcebisi Jonas, MTN Group chair and former deputy finance minister 

Kganyago did not mince his words when he spoke about our financial crisis, linking it directly to state capture. “South Africa’s bad growth over the past decade is not due to tight macroeconomic policies or global conditions. New research shows recent stagnation is mainly due to low productivity linked to state capture. There was more spending, but it produced worse outcomes, such as expensive power stations that don’t work properly. Private sector confidence collapsed.”

Our woes are well-known: load-shedding, water-shedding, high inflation, high petrol prices, high food prices. These are all linked to a state which some believe has already failed. Our state-owned enterprises are falling apart, as Ramaphosa’s predecessor and state capture-implicated Jacob Zuma happily pointed out on Saturday, without a hint of irony. Our daily problems are spilling into the ruling ANC, with political analyst Lukhona Mnguni this weekend predicting it will lose power as early as the 2024 elections. South Africa should prepare for this, he argued, with other speakers such as Gugu Motlanthe saying young people needed the chance to lead.

Jonas outlined five points on what needs to be done to reimagine our future. These included electoral reforms, a competent state, tackling inequality and focusing on economic growth in all sectors of society. “The truth of the matter is that there needs to be hard work, driven by the people in this room in partnership with civil society, business, religious leaders, youth and labour to develop a new national vision and agenda for change,” said Jonas.

These conversations are key. We need drastic change and co-operation across all sectors to bring about improvement in all our lives. Ramaphosa’s action plan against state capture culprits — if implemented properly and speedily — can be the start of our recovery as a nation. The ANC’s national executive committee said it is fully behind Ramaphosa in his implementation of the recommendations contained in the state capture report. The proof lies in the pudding. These are make-or-break times for the ANC and our nation.

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