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21 July 2021 | Story Prof Philippe Burger | Photo Sonia Small (Kaleidoscope Studios)
Prof Philippe Burger is Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development at the University of the Free State.

Government needs to see the private sector as a true partner, whose expertise and capital can leverage its plans

Opinion article by Prof Philippe Burger, Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development, University of the Free State

Many South Africans watched in disbelief last week as KwaZulu-Natal and Gauteng descended into looting, chaos, and destruction after Jacob Zuma’s imprisonment. Though probably instigated by disgruntled pro-Zuma supporters, it is clear that the protests very quickly spun out of control.

In newspapers, the question was repeatedly asked: did we see the hungry poor looting for food, or the opportunistic middle-class turning up in cars and bakkies to grab big-screen TVs and fridges? While images and videos clearly show that the latter were present in large numbers, the sight of other people – including gogos – ransacking supermarkets and running off on foot with loaves of bread and bags of maize meal, point to the former. In short, if people had jobs and hope that their lives would improve, I doubt we would have seen such anarchy.

Only a matter of time before protests and unrest occurred

With official unemployment above 30% and the broad unemployment rate – which includes discouraged work-seekers – in excess of 40%, it was only a matter of time before protests and unrest occurred. Zuma’s imprisonment was surely incidental. If it hadn’t been that, something else would have triggered the chaos.

COVID-19 also aggravated the situation, with 1,4 million people losing their jobs as a result of lockdown measures. In addition, the R350 COVID-relief grant expired at the end of April, leaving many with less food on the table.

A number of people argue that, in light of what has happened, we should bring back the relief grant; government may not have much choice now, given the lingering effect of 16 months of COVID restrictions on levels of unemployment and poverty. It will simply have to rearrange its budget to do so. However, we can’t stop at grants.

Even though a grant puts a bit of food in your stomach, it does not give you hope that the future will look better than today. It’s that bleak-looking future, that sense of nothing to lose, that fuels the looting and gives unsavoury politicians leverage for their selfish interests. Contrast this behaviour with that of taxi drivers, who came out to protect malls and chase away looters. They did so because they have something to lose, a stake in the economy to protect.

Every South African has a stake in the economy

We need to ensure that every South African has a stake in the economy. That way, people will have a sense of belonging, they will have options and agency, and they will have resources to improve their lives. They will have hope that the future will look better than the present. A person with a stake in the system is unlikely to break that system. 

We therefore need to seriously reconsider our policies, speed up much-needed change, and start building a believable message of hope – hope stemming from real concern for the plight of the poor, and serious implementation of policy. To help the poor, we need to create jobs, and for that we need investment.

Analysis of economic data shows that for every percentage point rise in private investment as percentage of GDP, we lift GDP growth by a third of a percentage point. And, on average, for every percentage point that GDP grows, employment increases by 1%. In recent years, private investment has averaged a mere 12% of GDP. If we can lift it to 15%, or even to 18%, GDP can grow by an extra one or two percentage points. It might not sound much, but after a decade or two it makes a big difference.

However, for this to happen, the government will have to see the private sector as a true partner whose expertise and capital can leverage the state’s plans. With such an approach, for instance, it would not be necessary for government to own and run an airline – a private operator will fill the gap in the market with its own capital, saving government billions of rands. And the government could long ago have let the private sector play a key role in the generation of electricity, instead of resisting change and only belatedly agreeing to lift the cap on private generation capacity from 1 MW to 100 MW.

Build communities where people escape poverty and have hope

The type and location of investment is also important. Data from the Council for Scientific and Industrial Research shows that SA’s urban population will have increased to between 50 million and 52 million by 2035. This is an increase of 12 million to 14 million compared to 2018.

We must use the opportunity to build green industries. It will save money and build a better environment. In short, as a growth strategy, we need a green, urban-driven investment strategy that caters for SA’s burgeoning urban population.

That way, we can build communities where people have a stake in the economy, where they have jobs and businesses, escape poverty, and have hope that their future and that of their children will improve.

• The article was first published in Business Day


News Archive

UFS Council elects a new Chairperson
2009-11-22

Judge Ian van der Merwe

The Council of the University of the Free State (UFS) elected Judge Ian van der Merwe as its new Chairperson at its last meeting for this year on Friday, 20 November 2009.

Judge Van der Merwe is an alumnus of the UFS and has been a member of the Council since 9 March 2007. In accepting his appointment, Judge Van der Merwe said that he was honoured and humbled to lead a Council of this calibre. “I will always do what is in the best interest of the UFS and, together with the Council, I will work towards making it an autonomous institution of academic excellence that is non-racial, non-sexist, and where diversity is cherished,” he said.

The election of a new Chairperson and the term of the Chancellor were among the matters discussed during yesterday’s meeting.

Dr Franklin Sonn will retire as Chancellor on 31 December 2009 and the term of office of the current Chairperson of Council, Judge Faan Hancke, will also expire on 31 December 2009. Dr Sonn has been Chancellor since 7 February 2003 and Judge Hancke has been Chairperson of the Council since 1 June 2001.

“I am elated that someone of Judge Van der Merwe’s stature has been elected as Chairperson and will provide him with my full support,” said Prof. Jonathan Jansen, Rector and Vice-Chancellor.

The Council paid tribute to Judge Hancke for the time he dedicated to the UFS, as well as for his leadership, guidance and wisdom to take the institution to where it stands in the current phase of its history. The Council also recognised Judge Hancke for, amongst others, his decision to appoint Prof. Jansen as the first black Rector and Vice-Chancellor, for his role in the implementation of the Transformation Plan and the policy to increase diversity in residences at the UFS, as well as his contribution to the growth of black students.

Judge Hancke thanked the Council for their support and assistance during his term and congratulated Judge van der Merwe on his appointment. “I wish Prof. Jansen and his management team well and hope that they will have the wisdom to solve the problems the institution is facing so that they can focus on the core business of the UFS namely its academia. I know the University can make a tremendous contribution to the country,” he said.

The Council also welcomed the following new members who were present at the meeting: Mr Pule Makgoe, MEC for Education in the Free State; Mr Ndaba Ntsele, Chief Executive Officer of the Pamodzi Group and Mr Willem Louw, Managing Director of Sasol Technology.

The new Chancellor will be elected as soon as the proposed statute is approved by the Council in 2010 and published in the Government Gazette. Prof. Jansen will act as Chancellor for the interim period from 1 January 2010.

Media release
Issued by: Lacea Loader
Deputy Director: Media Liaison
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl.stg@ufs.ac.za  
21 November 2009
 

 

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