NADIA K RAWJEE: Pragmatism will drive inclusive and sustainable growth

As the CEO of a finance company that is deeply involved in public-private partnerships, I am optimistic about the recent appointment of Parks Tau as trade, industry & competition minister.

Alongside Zuko Godlimpi (ANC) and Andrew Whitfield (DA) as deputy ministers, this diverse leadership team brings a unique blend of perspectives that could foster a more inclusive, balanced and pragmatic approach to economic development in SA. 

The country’s economic landscape is intricate, demanding solutions that address historical inequalities while fostering growth and job creation. Under Ebrahim Patel the department focused on redressing historical injustices, promoting BEE and supporting small and medium-sized enterprises (SMEs). While these efforts were commendable, they often left mid-tier independent manufacturers feeling overlooked. 

Pivotal moment

Tau’s leadership represents a pivotal moment. Known for his tenure as mayor of Johannesburg, Tau has demonstrated a strong commitment to sustainable development and inclusive progress. His approach to leadership is pragmatic and collaborative, often involving multiple stakeholders to achieve common goals. This style is likely to continue at trade, industry & competition, fostering a balanced industrial policy that acknowledges the contributions of established industrialists, while promoting transformative policies to uplift disadvantaged communities. 

During his time as mayor Tau led several urban renewal projects that emphasised sustainability and economic inclusivity. His ability to integrate various interests and focus on long-term growth makes him well suited to guide the department towards a more co-operative and balanced future. 

Godlimpi is expected to bring a strong focus on addressing historical inequalities and supporting BEE. As an advocate for community engagement and empowerment, his policies are likely to ensure that incentives are inclusive, targeting both new entrants and established market players. By bridging economic segments, he aims to create a cohesive industrial ecosystem that supports equitable growth. 

Godlimpi’s background in the ANC reflects his commitment to inclusive economic policies. His emphasis on creating opportunities for marginalised groups aligns with the broader goals of fostering equitable growth across SA’s economy. 

Whitfield’s market-orientated stance is expected to streamline processes, reduce bureaucratic hurdles and enhance competitiveness. His influence is expected to lead to more transparent and efficient incentive mechanisms, benefiting both local businesses and attracting new investments. His approach aligns with the DA’s principles of creating a business-friendly environment through deregulation and efficient public services.

As a proponent of transparency and accountability, Whitfield aims to develop a regulatory framework that encourages innovation and investment. His market-driven perspective is poised to boost SA’s competitiveness on the global stage, fostering economic growth through foreign direct investment (FDI) and local enterprise support. 

Amid these leadership changes, there have been notable positives in SA’s economic landscape. The reduction in load-shedding and a renewed focus on improving port operations are encouraging signs of progress. Additionally, ArcelorMittal’s recent statement highlights “green shoots” of recovery and growth within the industry, indicating a potentially brighter future​​. 

For SA to thrive it is essential to mobilise both domestic and foreign capital effectively. Positive sentiment among investors is a critical catalyst for economic growth. Incentives should not solely cater to FDI through the reintroduction of old schemes like S12i but should also ensure that the existing industrial base is supported and encouraged to expand and innovate. 

The balanced leadership team of Tau, Godlimpi and Whitfield has the potential to create a more integrated and holistic economic policy framework. By leveraging their diverse perspectives, the department can implement strategies that mobilise capital efficiently, foster positive investor sentiment and drive sustainable economic growth. 

Historically the department has been perceived as being anti-consultant, often sidelining external experts in favour of internal resources. This stance, while aimed at reducing costs and increasing internal capacity, may have limited the department’s ability to harness specialised expertise for industrial growth.

The new leadership, particularly with Tau’s pragmatic approach, might view consultants and external experts as valuable partners, especially for advisory businesses with deal pipelines. Engaging with consultants close to their clients’ needs can provide the department with fresh insights and targeted advice, enhancing policy development and implementation. Greater collaboration with consultants servicing various industrial sectors would result in more efficient budget deployment, meeting National Development Plan objectives, and driving substantial economic growth. 

The key to successful industrial policy lies in a pragmatic approach that balances the needs of various stakeholders. SA must continue to address the legacies of apartheid by supporting emerging black entrepreneurs and SMEs while also recognising the contributions of established industrialists. This balanced approach can ensure sustainable economic growth, job creation and social equity. 

Integrative approach

Patel’s tenure focused on transformation and inclusivity, often sidelining mid-tier manufacturers. Tau’s prospective tenure is expected to adopt a more integrative approach, supporting both established and emerging industrial players. The new leadership at the department, with Tau at the helm supported by Godlimpi and Whitfield, holds the promise of a balanced and inclusive industrial policy.

By recognising the importance of mobilising capital, fostering positive sentiment, and implementing pragmatic policies, the department can drive sustainable economic growth while addressing past inequalities. This approach not only serves to attract FDI but also ensures that the broad industrial base, critical for job creation and economic stability, is not sidelined. It is a nuanced and inclusive strategy that acknowledges the complexities of SA’s economic landscape and aims to create a prosperous future for all its citizens. 

The new leadership team has the potential to drive meaningful change and foster a thriving, equitable economy. As thought leaders, we must continue to advocate for policies that promote sustainability, inclusivity and innovation, ensuring a brighter future for SA.

Balanced and inclusive industrial policy will lead to increased domestic and foreign investment that will drive economic growth and job creation, fostering a robust economy. Sufficient support for black industrialists, entrepreneurs and SMEs through these policies could result in a surge of innovation and enhanced competitiveness that contribute to economic diversification and growth.

Streamlined regulations and transparent incentives could improve the country’s competitiveness on the global stage, attracting more global partnerships and investments. These policies have the potential to reduce economic disparities, fostering social cohesion and stability by promoting social equity. 

As we move forward it is essential to embrace a balanced approach that leverages the strengths of diverse leadership. By combining political pragmatism with business acumen, Tau, Godlimpi and Whitfield can create a balanced, inclusive and sustainable economic policy that will not only foster positive investor sentiment, drive economic growth and address past inequalities, but will pave the way for a prosperous and equitable future. 

• Rawjee is CEO at Uzenzele Holdings.