Business-government partnerships key to South Africa's economic revival

Nelson Mandela Bay Business Chamber, in collaboration with BDO South Africa, hosted an insightful discussion highlighting the essential role of business-government partnerships in addressing South Africa's economic and infrastructural challenges. This important conversation was led by notable business leader Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), alongside Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber and moderated by Siyabonga Mthembu, BDO Partner: Audit

New era of collaboration

Mavuso, whose extensive experience spans banking, telecoms, and business management, expressed optimism about the significant progress emerging from recent governmental shifts towards a Government of National Unity (GNU). She described the structural reforms currently unfolding as "a once-in-a-generation opportunity for genuine change in South Africa."

Mthembu added, "Collaboration between business and government is no longer optional, it’s fundamental for South Africa’s economic revival. At this critical juncture, our partnerships must prioritise accountability, transparency, and sustainable growth to unlock our nation’s true potential."

Public-private partnerships: A practical solution

One of the core topics addressed was the critical role of public-private partnerships (PPPs), particularly considering South Africa's historical challenges with energy crises, water shortages, and failing transport logistics. According to Mavuso, while these partnerships are essential, they must be designed to ensure sustainable institutional capabilities within government structures.

Van Huyssteen highlighted a compelling success story from Nelson Mandela Bay, where the Business Chamber supported the municipality in addressing a sanitation infrastructure crisis. By bringing private-sector engineers to work alongside municipal officials, last year the Chamber helped improve the efficiency of the city's sanitation infrastructure from a mere 15% to over 80%—demonstrating the tangible benefits of PPPs when implemented with collaboration and transparency.

Leadership: The driving force for change

Leadership emerged as another significant issue during the discussion. Mavuso emphasized that the establishment of South Africa's Government of National Unity on May 29, 2024, represents a crucial turning point, reflecting citizens' demand for accountability, efficiency, and ethical governance.

"Leadership should embody a commitment to public service rather than self-interest," Mavuso stated, adding that successful leaders must be willing to make tough decisions swiftly.

Van Huyssteen echoed this sentiment, advocating for greater accountability and emphasizing implementation over endless discussion. She highlighted Nelson Mandela Bay's unique economic advantages, including its strategic position with multiple ports, making it an ideal hub for manufacturing and exports. She called for increased national attention to the Eastern Cape's potential to boost South Africa's broader economy.

Education: Foundation for sustainable growth

Both speakers identified education as a foundational pillar for sustainable economic development. They stressed the urgency of addressing South Africa's education crisis, particularly the mismatch between skills taught in educational institutions and those demanded by businesses.

Mavuso criticised the current educational standards, citing the 30% pass rate as unacceptable in today's rapidly evolving global economy. She emphasized that improving basic education quality and aligning it with industry needs is critical to addressing both the skills mismatch and the unemployment crisis.

A path forward

The conversation concluded with cautious optimism for South Africa's future, propelled by growing business-led initiatives, responsible leadership, and improved cooperation between government and business communities.

Both Mavuso and van Huyssteen expressed commitment to deepening their collaboration, ensuring that Nelson Mandela Bay receives the national attention and resources needed to unlock its significant economic potential, thereby contributing positively to South Africa's broader recovery and growth.