DailySun
Last week’s handover of the B20 recommendations represents a pivotal chance to harness the G20’s potential for our future.
A significant amount of energy has been invested in the B20 process, led by some of South Africa’s top business leaders and numerous global contributors.
The G20 will assess these recommendations, which we trust will direct the choices made by the governments of the world’s largest economies to enhance prosperity in Africa.
As the host nation, South Africa will have substantial sway in the G20 discussions, though it remains a collaborative effort that hinges on global cooperation.
Upon evaluating the B20 task teams’ recommendations, we see a treasure trove of actionable insights that South Africa can leverage for economic revitalization.
Revitalization should be our foremost objective.
Recently, the Department of Employment and Labour warned that potential layoffs might endanger 250,000 jobs within our supply chains.
This looming threat, combined with anticipated job losses, is utterly devastating.
The B20 recommendations offer a dependable framework for the prompt, targeted actions we need—favoring specific reforms over vague global policies that have worked for other emerging economies in crisis.
The strength of the B20’s strategy lies in its breakdown of complex economic transformations into digestible steps—presenting straightforward, incremental improvements that deliver results compared to extensive plans that often stall in discussions.
The challenges we face are complex, yet the B20 framework provides us with a methodical approach to tackle them.
For example, in terms of global trade, the urgency of the B20’s trade facilitation recommendations is heightened as US tariffs force businesses to make tough decisions regarding their production strategies.
While we cannot dictate Washington’s trade policy, we can accelerate the adoption of the B20’s recommendations concerning digital customs systems and export processes, enabling our manufacturers to respond to new market dynamics.
Navigating US negotiations remains intricate, with multifaceted demands that deeply intersect with our national sovereignty, compounded by the unpredictability of US global strategy.
Our government is actively engaging, but the journey is anything but straightforward.
In the interim, we must take decisive and immediate actions in the areas we can influence.
What plan do we have to invigorate the automotive sector and ready it for emerging markets?
More critically, what is our execution plan, and are we progressing adequately?
The B20’s insights on special economic zones present one viable solution for swiftly creating the conditions necessary to kickstart manufacturing.
With 250,000 jobs hanging in the balance, fast-tracking manufacturing zones focused on automotive and renewable energy could open up opportunities for displaced workers within a matter of months, rather than years.
How are we strategically using our tariffs to promote vital domestic industries and support their growth?
Is there sufficient collaboration between businesses and government to tackle challenges as they emerge?
Is the government positioned to act promptly on specific issues?
The B20’s emphasis on industry-led partnerships exemplifies how this collaboration can function.
Economic development thrives on a series of incremental enhancements rather than grand, sweeping strategies.
Small yet effective initiatives—like reforming visa regulations to improve access to home affairs documents via banks or allowing individuals ownership of their homes—accumulate to create substantial change.
These initiatives align seamlessly with the B20’s principles of regulatory simplification: targeted reforms that require decisive action rather than extensive strategies.
The B20 presents straightforward policy adjustments we can enact right away to address our job crisis.
Immediate actions must focus on job creation and aligning skills.
The government should fully exploit special economic zones by accelerating manufacturing investment permits within the automotive, renewable energy, agri-processing, and other sectors equipped to swiftly absorb displaced workers.
At the same time, labor laws need revisiting to establish flexible employment models while ensuring worker protections and creating industry-led skills development partnerships with mandatory private sector involvement.
This directly tackles the skills mismatches that are at the heart of our unemployment crisis.
Infrastructure improvements require focused institutional reforms.
We must establish blended finance institutions to leverage public capital for infrastructure and SMME development while revising banking regulations to boost financial inclusion.
Investment in national broadband infrastructure, digital literacy programs, and comprehensive trade facilitation measures—including digital customs systems and improved export procedures—position South Africa as a regional manufacturing leader.
Such initiatives could turn the R1 trillion earmarked for infrastructure investment in the budget over the next three years into tangible progress.
We need to prioritize the rollout of national broadband infrastructure, implement compulsory digital literacy programs in schools and communities, and develop robust cybersecurity regulations.
We must execute thorough trade facilitation efforts, adopting digital customs systems and simplified export procedures while actively pursuing bilateral investment treaties to establish South Africa as both a manufacturing and services hub in the region.
These are just a few of the many recommendations presented by the eight B20 workstreams.
They provide invaluable insights on how we can foster global economic growth, but more importantly, they should compel us to act decisively within our domestic context as we confront serious economic challenges.
It may appear that maintaining the status quo is the safest approach for policymakers.
However, it is increasingly clear that clinging to the familiar could lead to dire consequences.
We cannot persist with outdated practices while the job crisis devastates our economy.
Our public sector must be as dedicated to overcoming these challenges as we are in the business sphere, ensuring our economy serves our citizens effectively.
The B20 has provided us with a clear pathway forward.
The urgency of the jobs crisis has imposed a deadline upon us. The only remaining question is whether we have the political resolve to act promptly, in alignment with the expectations of the business community and the needs of our populace.
We must make timely decisions and execute them without hesitation.
Let’s focus on the small yet significant changes without being overwhelmed by complexity or prolonging deliberations. Most importantly, we must take action.
*This column was originally published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso, is the CEO of BLSA.
*The views Busi Mavuso expresses in this column do not necessarily reflect those of The Bulrushes.
