Harare — CEOs from more than 115 top South African companies, which together employ 1.2 million people and have a market value of R11 trillion, have publicly committed to aiding the nation in resolving the issues that are now impeding inclusive economic growth, according to Business Tech.
The businesses operate in every sector of the South African economy, which is currently characterised by low economic development, crumbling infrastructure, crime and corruption, high levels of inequality and unemployment, and low levels of government accountability.
CEOs from more than 100 other large corporations, including Standard Bank, FNB, Shell, Anglo American, Napsers, Woolworths, Spar, Vodacom, MTN, and Netcare, are said to have signed the pledge.
According to their promise, the CEOs are dedicated to addressing South Africa’s many difficulties, fostering inclusive economic growth, and acting as “a force for good” because they believe in the country’s potential.
Adrian Gore, group CEO of Discovery and vice president of Business Unity South Africa (Busa), said that the pledge was more than just a token act and represented a “concrete commitment to drive change in key sectors that are essential for our economic recovery.”
A partnership between President Cyril Ramaphosa and Busa, through its arm Business for South Africa, has recently been announced to implement interventions in the fields of energy, transportation and logistics, and crime and corruption. While a R100 million (approximatey U.S.$5,6 million) resource mobilisation fund has also been raised to support the addition of expertise to the National Energy Crisis Committee, which was established to address the loadshedding crisis.
South Africa’s growth is set to decelerate sharply in 2023 due to power cuts, the International Monetary Fund warned in March, 2023. In their recent visit to South Africa, an IMF team said: “South Africa’s economic and social challenges are mounting, risking stagnation amid an unprecedented energy crisis, increasingly binding infrastructure and logistics bottlenecks … Real GDP growth is projected to decelerate sharply to 0.1% in 2023 mainly due to a significant increase in the intensity of power cuts, as well as the weaker commodity prices and external environment.”
Meanwhile, the 2023 Southern Africa Economic Outlook, just issued by the African Development Bank (AfDB), paints a gloomy picture of the region’s economic prospects. The top development financier on the continent forecasts a woeful growth rate of 1.6% for this year and blames the slump on chronic global shocks that are still having an effect on economies throughout Africa, including climate change, inflation, increasing interest rates, and rising prices.
The Southern African region has been most hit by the Covid-19 pandemic’s aftermath. Very little economic development has been seen over the previous two years, and it is predicted to continue on a sluggish path. George Kararach, the African Development Bank’s chief economist, has reportedly warned that growth in Southern Africa is projected to dip down to around 1.6% in 2023 before slightly picking up in 2024 to reach about 2.7%.
