“Economic change is never easy and reforms are more easily spoken about than done. In South Africa we are getting to the point of convergence in civil labour and society to engage in practical activity to demonstrate how to bring about change. There is no textbook to this. Growing an economy is more complex and requires a collective purpose and will as well as time.”
These were the words of the Finance Minister, Pravin Gordhan at The Gathering, which took place at the Vodaworld in Gauteng recently. The Minister was the last speaker of the day, and like many of the speakers that proceeded him, he expressed an optimism about South Africa.
But The Gathering kicked off on a dry note with the director general of the ANC, Zweli Mkhize regurgitating ANC policy and election manifestos with the audience listening politely. Democratic Alliance leader, Mmusi Maimane, fared only slightly better – although he did get a chuckle out of the audience when he asked where Jacob Zuma was - “Probably in Dubai” being his answer - given that both he and Julius made the effort to attend.
But both Mkhize and Maimane were quickly forgotten when Julius Malema of the EFF took the stage. The highlight of the three by far, the largely white middle class audience clapped and cheered him on as he asked why there was so much concern with bicycle lanes in Sandton when just across the road people in Alex were without toilets.
It was right there that one of the themes of the day took shape and for the rest of the event, bicycles and toilets were a reference point, a metaphor and the subject of much discussion.
However, the optimism theme started with Mkhize, when he admitted that the economic situation was not good and that the current growth was never anticipated, but we are also affected by factors beyond our control, such as the commodities prices. “South Africa, its leaders and government must work together to bring back confidence in the country. We need to solve what we can and adjust the ones we cannot. I am optimistic at our prospects.”
Mmusi added to this. “It is part of prevailing conditions to make a change. What is wrong with South Africa is not its people; it is its leaders. It is the test of democracy. Given the right leadership and change, then country can be prosperous. We have been in these difficult conditions before as a country.”
But the real optimist on the day was Pravin Gordhan. And if the audience response was anything to go on he was also the most popular speaker of the day. The Finance Minister started off by telling the audience that as a nation we should not be too depressed. “In South Africa we have many things to be proud of… We have avoided junk status for the next few months, and will have to work harder, but there are many things going well for South Africa. We have a vibrant civil society and parliament and we are more transparent than many other countries in the world.”
He adds to this that our business community is fairly innovative and we have the most sophisticated economy on the continent and a fiscal framework that we stick to and deliver. “When we say we will reduce the deficit, we do. However, to be frank, more work does need to be done in this area.”
The minister says that confidence plays a big part in getting business and investment in our country going. “Confidence is also about building trust and a shared idea which is not easy as South Africa is still a divided country with different points of view. It is important we try to get a common purpose on how to approach investors and rating agencies.”
South Africa is a microcosm of what the world is talking about he points out. “The big topic is inequality and how increased productivity is not resulting in the spread of benefits to the lower part of society. The levels of alienation are growing and this leads to a growing cynicism. Young people especially are feeling alienated. If we do not solve these problems, then they will compound in the longer term.”
The challenge he adds is to find transformation and growth and ensure they take place at the same time. “To get growth we need to remove obstacles, implement monetary policy and find opportunities for investments in sectors that lead to growth and skills development, especially for the youth. Government and business must cooperate, and leadership is required from each sector. This leadership must be ethical and campaign for higher levels of integrity and a higher set of values.”
Structural reforms and changes in South Africa will require bold leadership and careful judgement he adds. “We are going through tough times, and are facing a few years of a low growth scenario. Many economies on the continent are in difficulty, particularly oil resource ones, but we have no option, but to exercise our creativity and leadership, new mortality, democratic institutions of country and work to leave behind a better SA for future generations.”
Asked how much political support he has, his answer was clear: “I am still in the job and next week I will be in the job.” It was at this point that he was overwhelmed with emotion and needed a moment.
