The post-pandemic period has been challenging for SA, characterised by constrained supply chains, rising interest rates, growing inflation and rising inequality. The war in Ukraine is exacerbating these issues.
This year, the annual Sunday Times Directors Event, in partnership with BCX, was focused on reigniting the sense of Ubuntu. Now in its eighth year, The Directors Event, dubbed SA’s largest board meeting, has become an important platform for dialogue and debate between the public and private sectors, shining the spotlight on the major issues of the day, said Sunday Times editor, S’thembiso Msomi.
Jonas Bogoshi, CEO of BCX said The Directors Event is an important platform for leaders to listen and reflect. Critically, it’s also an opportunity to ask a fundamental question: what can we do to make things better?
Dr Imtiaz Sooliman, founder and chairman of Gift of the Givers delivered this year’s keynote address. Established 30 years ago, Gift of the Givers is currently the largest and most comprehensive disaster response organisation globally, providing assistance unconditionally, assisting the needy, irrespective of race, religion, colour, class, political affiliation or geographic location.
Since its establishment it has been responsible for delivering life-saving goods and on-the-ground support in more than 43 countries around the world, including in SA. Most corporate social responsibility initiatives “don’t have a clue” and “don’t address the real issues”, said Sooliman.
Food insecurity has become a very real problem. In the Eastern Cape, for example, children are dying of hunger. When people have no dignity and are hungry, they lose hope. If leaders want to make a real difference then they need to give people hope. This requires that we grow the economy and create more jobs.
He reminded the audience that SA does not belong to the government but rather to its citizens. Therefore, “it’s our responsibility to fix SA.”
Political analyst Daniel Silke delivered the keynote analysis. He predicts ongoing supply chain disruptions and a frozen conflict in Ukraine which will have global ramifications including slow global economic growth, inflation spikes, rising food prices and a changed global order.
While SA is likely to fare better than many economically given the commodities it exports, the country’s ruling party is caught between its economic ties to the West and an emotional and ideological connection to Russia. As the commodity boom tapers it will need to bear in mind that it still requires foreign direct investment. SA only just made it into the top 10 of Deloitte’s 2022 Africa Investment Attractiveness Index released this month, indicating that there is work to be done before it will successfully attract investment.
The first panel discussion, moderated by Gugulethu Mfuphi, focused on fixing the economy to improve livelihoods. Panellists included Nontobeko Hlela, a researcher for the SA Office of the Tricontinental Institute for Social Research; Dr Azar Jammine, the chief economist at Econometrix; Eustace Mashimbye, CEO of Proudly SA; Hendrik Malan, CEO of Frost & Sullivan Africa; John Dludlu, CEO of the Small Business Institute; and Jan Bouwer, chief of Digital Platform Solutions at BCX.
The global environment is already having an impact on SA, resulting in higher food prices, and inflation and interest rates both on an upward trajectory. Unemployment is at an all-time high, educational outcomes are poor and the small business sector is struggling to survive.
The panel agreed that we need to grow the entrepreneurial sector and capitalise on the agricultural opportunities realised by the war in Ukraine. At the same time we need to move away from a purely extractive economy and put more focus on beneficiating commodities. We also need to build our technological skills base so that South Africans are able to take advantage of global opportunities. Importantly, we need to ensure that we remain competitive, despite a focus on localisation.
The second panel discussion, moderated by Uveka Rangappa, focused on feeding the nation. Panellists included Dr Jaisheila Rajput, founder and CEO of Tomorrow Matters Now; Professor Mark Swilling, co-director of the Centre for Sustainability Transitions at the University of Stellenbosch; Professor Imraan Valodia, pro-vice chancellor: climate, sustainability and inequality at the University of the Witwatersrand; Andy du Plessis, MD of FoodForward SA; and Professor Francois Engelbrecht, director and professor of Climatology, Global Change Institute at the University of Witwatersrand.
Currently, more than 40% of South Africans are affected by hunger and suffer from nutrient deficiencies. Hunger has worsened since the onset of the pandemic making it more urgent than ever that SA doubles down on securing resilient food supply chains. Climate change is likely to exacerbate this situation. Already unpredictable and extreme weather patterns – floods, droughts and wildfires – are playing havoc with agricultural supply chains which is impacting food security.
The problem is not that SA does not have enough food, but rather that it’s not being equitably distributed. As affordability and accessibility become growing issues, we need to transition away from an industrialised food system towards more ecologically friendly agricultural methods and a more sustainable system. Civil society organisations have stepped up to address hunger but need regulation to regulate donations of excess food.
The biggest risk to food security in sub-Saharan Africa is climate change including the risk of longer lasting droughts which makes it imperative that the continent curbs its carbon emissions as quickly as possible.
The third – and final – panel discussion, moderated by Nompumelelo Runji, put the spotlight on new ways of tackling inequality. Panellists included Precious Zikhali, senior economist in the Poverty and Equity Global Practice at the World Bank; Phelisa Nkomo, development economist and chairperson of Oxfam South Africa; Cosatu spokesperson Sizwe Pamla; Professor Murray Leibbrandt, MRF chair in Poverty and Inequality Research and director of the Southern Africa Labour and Development Research Unit at UCT; and Busisiwe Memela-Khambula, CEO of the South African Social Security Agency (SASSA).
The World Bank ranks SA as the most unequal country in the world. High levels of inequality are underpinned by inherited lack of economic opportunity for a large proportion of the population. While government does offer a safety net in the form of social security grants, the grants are not big enough to survive on. Of concern is that a growing number of people – many of whom are of productive age – are falling into this social security net. Restoring hope to this sector of the population will require a co-ordinated approach between government and business to create opportunities for employment.
One of the over-arching take-outs from this year’s Sunday Times Director’s Event is that while SA faces numerous significant challenges currently, its recovery will be dependent on leaders in both the public and private sectors charting a bold and brave new path for the country.