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Gcina Mtengwane teaches in the Community Development Programme at the Centre for Gender and Africa Studies, University of the Free State, Qwaqwa Campus.

Opinion article by Gcina Mtengwane, Centre for Gender and Africa Studies, University of the Free State.


The notion that 2024 could echo the transformative spirit of 1994 holds weight. South Africans find themselves in a pressing need for positive social, economic, and political change. Yet, the avenue through which this change will manifest - a reformed African National Congress (ANC), an opposition party or a coalition government - remains unchartered territory. South Africa is on a downward trajectory. As various international indexes project corruption and poor governance, noting also that those indexes may not at times be accurate, the lived experiences of South Africans echo despair, disillusionment, and a betrayal of promises for a better life, particularly among the working class and the poor. 

The first democratic election in 1994 heralded an era where a new government had the opportunity to represent the interests and aspirations of all citizens, countering the discriminatory policies of apartheid. It fostered optimism for equal access to opportunities and life chances regardless of race, religion, gender, class, or ethnicity.

However, the transition to democracy, like any new venture, brought forth both opportunities and challenges. Actualising the vision of a ‘rainbow nation’ necessitated tangible legislative reforms and macroeconomic strategies beyond mere rhetoric. Consequently, initiatives such as the Reconstruction and Development Programme (RDP) in 1994, the Growth, Employment and Redistribution (GEAR) strategy in 1996, The Accelerated and Shared Growth Initiative for South Africa (ASGISA) in 2005, the new Growth Path in 2010, and the National Development Plan vision 2030 were implemented. While the efficacy of these macroeconomic frameworks remains contested, there is a consensus that more can be done and perhaps differently.

Parallels between 2024 and 1994? 

South Africa grapples with high unemployment, alarming crime rates, and an education system ranked among the world’s worst. South Africa is among the most unsafe countries in the world with an estimate of 27 494 murders recorded in 2022-2023. Ranked at 50th out of 63 countries, its education system is rated among the worst performing in the world. The education system fails to equip matriculants with practical skills for sustainable livelihoods. Additionally, funding exclusions and high dropout rates plague higher education, exacerbating the crisis. NSFAS has proposed defunding certain qualifications from its budget and half of those who do make it to universities drop out in their first year.  Moreover, South Africa measures the highest income inequality in the world, with a Gini coefficient of around 0.67, race being a key factor in a society where 10 per cent of the population owns more than 80 per cent of the wealth.

Persistent income inequality and deeply entrenched racial disparities are hindering the opportunities for upward social and economic mobility for the majority, notably the youth. The unemployment rate among youth, which includes persons between 15 and 35 years old, is around 60%. There is low support for and a high failure rate of start-up small to medium enterprises (SMMEs) with between 70% to 80% failing in the first five years of operations. There is a high rate of youth neither in employment nor in education or training (NEETs).  Data shows that 32.6% of graduates struggle to find work within the first two years of graduation, implying that for some, regardless of educational attainment, there is no optimism regarding the prospects for a better future.

The issues highlighted above are just some of the issues facing South Africa. These challenges underscore the urgent need for well-conceived and actionable solutions. A governing party must demonstrate clear policy direction and effective implementation mechanisms to uplift the most vulnerable while safeguarding the rights of all citizens, irrespective of race. However, certain radical policy proposals, like affirmative action and land expropriation without compensation, pose significant ideological divides.

Opportunity to nurture democracy

South Africa boasts over 30 years of democratic experience, providing invaluable lessons from past elections. There is a unique opportunity to nurture democracy and freedom, as is enshrined in the constitution, ensuring the well-being of current and future generations. The prospect of a coalition government looms large, potentially marking a historic shift. While unprecedented at the national level, coalition governance has been trialled in various municipalities including Johannesburg, Nelson Mandela Bay, and Ekurhuleni. However, these experiments often resulted in governance failures, characterised by instability and policy dissonance, rather than cohesive leadership. Political rivalry among the parties undermined service delivery and good governance, leading to the failure of coalition governance at the local government level.

Policy misalignment emerges as the key impediment to coalition success. The recent formation of the ‘Moon-shot pact’ underscores the necessity for aligned policy positions among coalition partners to avert governance crises.

Voter implications

Voting entails entrusting a political party with the responsibility to serve the interests of millions. It demands an informed understanding of the party’s policies as outlined in its manifesto. While individual charisma may sway voter preferences, informed decisions are imperative amidst South Africa’s challenges and opportunities. 

News Archive

Guest lecture: Mr Pretorius, CEO of McCarthy Limited
2004-11-05

The challenges facing business leaders in a rapidly changing South Africa

“The world we used to know does not exist anymore. Leaders are continually dealing with crisis and opportunities, in a high-pressure environment,” said Mr Brand Pretorius, honorary professor from the University of the Free State , delivering his 13th guest lecture on the challenges facing business leaders in a rapidly changing South Africa .

Mr Pretorius, CEO of McCarthy Limited, identified certain trends which are responsible for changes to the South African business environment. He said the South African business environment is ever-changing, fast moving, complex and unpredictable. “As business people we have to deal with the impact,” he said.

“Years ago we were globally isolated. Now we live in a shrinking borderless world with crumbling trade barriers. Globilisation of our economy is accelerating. For South African business leaders this creates a sea of export opportunities,” he said.

Although there are ongoing demands for substantial profit growth from shareholders, the days of focussing only on their interests are gone, said Mr Pretorius. Stakeholder commitment now enjoys high priority and business leaders have to deal with the challenges accompanying black economic empowerment and employment equity.

Customers are also well-informed and demanding. Business leaders could easily loose the loyalty of their customers because of a hyper-competitive environment with an oversupply of goods and services.

Mr Pretorius stated that staff want to be involved and are looking for meaning in their workplace. Employers also have to deal with HIV/Aids in their workplaces. Trauma, absenteeism and financial implications could have a great effect on the viability of a business.

Against these changes Mr Pretorius pointed out the challenges business leaders are facing. In doing so a number of questions arise. The external business climate is characterised by turbulence and change. Internally there is a need for stability and meaning. How do we handle both challenges effectively?

Because of changes strategy decay is taking place and past strategies become irrelevant. Mr Pretorius said that business leaders need to modify their business models to prevent the downfall of their companies.

It is important for leaders to know what is happening in their world. “Continuous innovation is a critical success factor. The reality is that innovation is the only insurance against irrelevance,” he said.

Because of a changed environment leaders must perform and transform, simultaneously. How do we strike a balance between focused transformation and the achievement of world class performance, asked Mr Pretorius? “We need to bring about meaningful and sustainable empowerment, in order to create an inclusive economy and society. Leadership and management profiles should reflect the diversity of our teams, however at the same time every effort should be made to stop the brain drain and retain the expertise of experienced white managers.”

He also stated that leaders have an important role to play in terms of employment creation and corporate caring. “Sustainable stability and prosperity will not materialise without efforts in this regard.”

Mr Pretorius said that above challenges could be addressed by developing the ability to focus on creating a better future, rather than defending the past, a long-term vision, facing new realities, enhancing the value of brands and mobilising IT and the Internet to serve the business and customers better.

Retaining a positive vision of the future, embracing change and transformation, building your business according to the right principles and values and aspiring to be the best are some of the guidelines, according to Mr Brand, for future business success. He stated that creating a value advantage above one’s competitors, customer satisfaction and retention and inspirational leadership will add to the success of one’s business.

“We are indeed living in the era of the ultimate challenges, but also the ultimate opportunities. Let me clearly state that I have hope – in my view the tide has turned. Every day I experience small miracles inspired by ordinary people making an extraordinary difference,” said Mr Pretorius.

 

Media release
Issued by: Lacea Loader
Media Representative
Tel: (051) 401-2584
Cell: 083 645 2454
E-mail: loaderl.stg@mail.uovs.ac.za
5 November 2004

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