On July 19, 2023, Minister of Human Settlements Mmamoloko Kubayi delivered a powerful speech at the Nedbank Top Empowerment Conference in Sandton. She spoke about the challenges facing South Africa’s economy and the need to reduce inequality in the country.
International Mandela Day
Kubayi began her speech by emphasizing the significance of International Mandela Day, which honors the life and legacy of Nelson Mandela. She acknowledged that although political freedom has been achieved in South Africa, economic freedom remains elusive for many citizens.
South Africa’s Economic Challenges
Kubayi identified three primary constraints on the South African economy: electricity supply, logistics, and inequality. She noted that small and medium businesses have been particularly impacted by unreliable power supply, but the government is working to address this issue.
Addressing Inequality
Kubayi emphasized that inequality is a product of South Africa’s exclusionary economic configuration and must be addressed to achieve inclusive growth. She cited the detrimental effects of inequality on society and urged both the public and private sectors to work together to reduce it.
Purpose-led Transformation in Businesses
Kubayi highlighted the need for enterprises to adopt a purpose-led transformation approach, which involves creating sustainable value for a broad range of stakeholders. She urged businesses to think beyond profit and consider the well-being of employees, communities, suppliers, governments, investors, and shareholders.
Key Steps to Address Economic Challenges
Kubayi outlined five key steps to address South Africa’s economic challenges and promote inclusive growth:
- Intensify efforts to grow the economy.
- Transform the financial sector to be more accessible to small businesses.
- Foster strong partnerships among all social partners to attract investment.
- Increase efforts to make the economy more inclusive and diversified.
- Enhance efficiency in both the public and private sectors.
A Just Transition
Kubayi concluded her speech by emphasizing the importance of a just transition towards a low-carbon and digital economy. She noted that businesses must recognize the need to create and protect value for employees and communities to avoid leaving them behind.
By adopting purpose-led transformation and implementing measures to address South Africa’s economic challenges, the country can achieve inclusive growth and reduce inequality in honor of Nelson Mandela’s vision.
