Lessons from BRICS countries to renew our economy

By Masibongwe Sihlahla

As South Africa, the economic giant of Africa, is playing an increasing role in BRICS+, it is critical for our political stability that we address our slow economic growth of less than 1%. Germany's growth is struggling as well to reach 1% but because of the war which is understandable because Germany is unable to tell the US not to order them around.

In a US hegemonic world, the largest economy in Europe is beholden to US political instructions. What a disgrace when countries as important as Germany has to swallow their pride and dignity and jump when Uncle Sam says jump. In South Africa, however, for us to kickstart our economy and be that beacon of hope that BRICS+ represents, I propose the following strategies:

1. Addressing Corruption and State Capture: South Africa's economy has been hamstrung by corruption, state capture, and a lack of accountability. To move forward, it's essential to strengthen our Chapter 9 institutions, enhance transparency, and hold those responsible accountable. This would unlock significant economic potential and attract much-needed investment. It is time that the HAWKS be removed from SAPS and placed under the Presidency.

2. Invest in Human Capital: Despite a rich human resource base, South Africa's education system has struggled to produce the skills required for a modern economy. Investing in education, training, and upskilling the workforce would help South Africa to rebuild its economy and establish a competitive advantage, much like Russia and Japan did post-WW2.Our TVET colleges are failing our youth in delivering the technical training our economy needs. Our National Research Foundation responsible for funding vital research is no longer heard of in the media as if they operate in a vacuum.

3. Industrialization and Diversification: South Africa's economy remains heavily reliant on commodity exports, making it vulnerable to global market fluctuations. Diversifying the economy, particularly in areas like manufacturing, renewable energy, and services, especially in e-commerce and tourism, would reduce this vulnerability and create new opportunities for growth. As President Mbeki said many years ago South Africa need to stop exporting our raw minerals and add value to it by processing it here in our country thus increasing our share of revenue to the fiscus.

4. Addressing Inequality, Crime and Poverty: South Africa's economy has been characterised by high levels of inequality and poverty, which have hindered economic growth. Implementing policies to address these issues, such as progressive taxation, social welfare programs, and job creation initiatives, would stimulate domestic consumption and reduce inequality. SARS should stop thinking of themselves that of being in the role of launching witchhunts and increase their database and in the process disadvantaging those who work hard and deliver job creation opportunities.

5. Infrastructure Constraints: South Africa's infrastructure, including transportation networks, energy systems, and telecommunications, has struggled to keep pace with economic demands. Investing in modernizing and expanding this infrastructure would vastly improve the business environment and facilitate economic growth. The privatisation of Transnet has only resulted in more corruption and a cavalier attitude amongst management and executives thinking they are beyond the reach of law enforcement authorities, it is time we have a DG of Transnet again to ensure accountability.

6. State-Led Development: South Africa's government has a critical role to play in guiding economic development through strategic planning, investments, and subsidies. This could involve state-owned enterprises, public-private partnerships, or other forms of collaboration to drive growth. The DA thus far in the GNU has boasted about their successes in government but they fail to state it is only ANC policies they are implementing.

7. Encouraging Domestic Consumption: South Africa's economy has been characterized by low levels of domestic consumption, largely due to high levels of poverty and inequality. Implementing policies to boost domestic demand, such as tax incentives or subsidies, would stimulate economic growth and reduce reliance on exports. The cost of living pressure has reduced South Africa's population to the level where meat is no longer on the menu as the majority of our people cannot afford it. Some pensioners eat pap 3 times a day.

8. Innovation and R&D: South Africa has struggled to invest in research and development, hindering its ability to stay competitive in the global economy. Increasing investment in R&D, particularly in areas like renewable energy, biotechnology, and advanced manufacturing, would unlock new opportunities for growth and innovation. The HSRC and the CSIR are shadows of themselves having been run into the ground through poor leadership only interested in lining their own pockets.

By addressing these significant challenges and learning from BRICS countries, South Africa can create a more favorable environment for economic growth and move towards a more autarchic economy and assist other African countries achieve autarchic economies as well.

*Sihlahla is an independent writer, political commentator and social justice activist

**The views expressed here are not necessarily those of Independent Media or IOL.