Gearing for Growth has been saved
Gearing for Growth
Achieving the Elusive Trinity of (Re) industrialisation, Productivity and Employment.
Outcomes report June 2018
The Gearing for Growth seminars are a series of four flagship executive seminars that enable the sharing of intellectual capital, while proposing best practice ideas and insights to support renewed growth of the South African economy. While poverty, inequality and unemployment are key challenges in the economy, there is still disagreement surrounding the necessary steps that need to be taken to rectify these issues.
The realities of labour, capital and global competition may conspire against us achieving this recipe of inclusive growth. How do policy-makers and business combine efforts to consider and pursue the elusive trinity of (re) industrialisation, productivity and employment creation? Phumzile Langeni,Executive Chairman, Afropulse Group and Investment Envoy for H.E. President Ramaphosa and Professor Robert Lawrence of Harvard University delve into the realities of labour, capital and global competition in achieving inclusive growth.
Key take-outs from this report
- South Africa’s key challenges to achieving economic development include poverty, inequality and unemployment. The balance of payment deficit, the decline in economic growth and the high increase in the unemployment rates are structural issues that need to be addressed.
- Countries with high Gini coefficients (i.e. most inequality) tend to have low manufacturing value add (MVA) as a share of GDP, and the countries with higher MVA have lower Gini coefficients. This suggests that in order to reduce inequality, South Africa needs to revisit its industrial policy.
- Manufacturing is often seen as mechanism for inclusive growth as it has historically been an important source of well-paying employment for workers without high education levels, allowing them to enter the middle class. However, in the future, manufacturing is unlikely to perform the same role as it has in the past.
What our experts say
- South Africa is tending more towards diverging rather than converging with developed economies.
Call to action
To achieve the elusive trinity of (re)industrialisation, productivity and employment, South Africa should rather focus on a number of policy suggestions. Download the full summary to see what is proposed.
How can Deloitte help
Contact us to see how we can partner with you to practically and pragmatically grow the South African economy.