Government and business partners in renewed drive to hit 3% growth by 2025

Discovery CEO Adrian Gore set a lofty target for economic growth as business and the government renewed their working partnership in Sandton on Tuesday. 

Gore told CEOs and government representatives that it was possible for the economy to grow 3% by 2025, resulting in the creation of more than 2.5-million jobs in the next five years.

It is an ambitious target — and unattainable, despite the easing of load-shedding.

Business and government met on Tuesday to launch the second phase of their partnership, dubbed “the renewing of the vows” by insiders in the presidency. More than 150 leading CEOs again pledged their support for the partnership, which in the first phase confronted the energy and logistics crisis in SA. 

President Cyril Ramaphosa said the initiative was born out of his belief in extensive consultations and with like-minded partners who are working in the national interest. 

“We have opened a new era of hope and promise. Load-shedding was debilitating and we have finally turned a new corner. We are on a forward-moving path. We are not stuck in a rut because we have been brave enough to form partnerships that move our country forward. We have to celebrate and look forward,” Ramaphosa said.

The initiative has worked from the ground up thus far through the provision of technical experts and some financial support to Eskom and Transnet. 

The high-level meetings with the president are generally attended from government’s side by about 10 cabinet ministers, including those responsible for the electricity, transport and law enforcement sectors, as well as the CEOs of Eskom and Transnet. 

The question is, where will economic growth come from after years of a disappointingly poor showing due to a lack of political of will and the scourge of corruption? 

It was answered by Busa chair Gore, who said that 3% economic growth was achievable through “changing sentiment”.

“If sentiment is bad, it pulls growth down,” Gore said. 

He said that hugely improved economic growth could be achieved if 4GW of electricity was added to the grid and if SA was removed from global financial crime watchdog Financial Action Task Force’s list of countries with a higher risk of money-laundering and terrorism financing. 

“This country is in a different place. Between us, there is good faith and trust,” Gore said. 

The executives in charge of each of the partnership’s three focal areas will report back to the meeting on progress and challenges.

omarjeeh@businesslive.co.za