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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

Outstanding UFS alumni celebrated at annual award ceremony
2016-11-08

Description: Alumni awards 2016 Tags: Alumni awards 2016

Justice Mahube Molemela, Justice Ian van der Merwe
and Tanya Calitz.

The annual Chancellor’s Distinguished Alumni Awards ceremony was presented by the Office of Institutional Advancement on 5 November 2016, at the University of the Free State (UFS) Bloemfontein Campus. The prestigious awards recognise outstanding achievements of UFS alumni provincially, nationally and internationally. These are alumni who have not only placed the university on the world stage but have inspired the next generation of Kovsies and their communities at large.

“I am proud of this year’s award recipients and it is an honour to recognise them for the contributions they make,” said Justice Ian van der Merwe, Chairperson of the UFS Council, at the ceremony. “With these awards, the university wants to strengthen its bond and replenish its connection with alumni, showcase their achievements, and inspire other alumni and students to achieve in their respective fields,” Justice van der Merwe said.

For the first time, the Young Alumnus of the Year Award was presented, to recognise and celebrate the achievements of alumni who have graduated within the past decade. The recipient of the award, Tanya Calitz, Research Lawyer at the Constitutional Court of South Africa, said in her acceptance speech: “At Kovsies you arrive as a student and leave as a critical thinker and leader.”

The Chancellor’s Distinguished Alumnus Award was presented to Justice Mahube Molemela, Chancellor of the Central University of Technology and Judge President of the Free State High Court. “I accept this award with humility and appreciation from this esteemed institution. It is moments like these that we as alumni should reflect on what we can do to contribute to the excellence of the UFS,” said Justice Molemela.

More awards were presented to alumni in the following categories:
•    Rolene Strauss, former Miss World and student at the UFS.
•    Wayde van Niekerk, current world record holder, world champion and Olympic champion in the 400 metres, and student at the UFS.

Cum Laude Award:
•    Neil Powell, Coach of Blitzbokke that won the bronze medal at the Olympic Games in 2016.
•    Professor Eunice Seekoe, Acting Dean: Faculty of Health Sciences, and leader in Health Science professional training.
•    Gary Stroebel, CEO of Central Media Group and visionary media pioneer.

Executive Management Award:
•    Anna Botha (Tannie Ans), coach and mentor of Wayde van Niekerk.
•    Anton Esterhuyse, musical director, composer, arranger, producer, and performer.

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