As 2016 draws to a close, it becomes very important to reflect on some of the critical work that unfolded over the course of this year to set the bar for the new year.
This year has been a challenging one in terms of our economy. We have all seen the impact of service delivery protests and the effects of the turmoil that engulfed our institutions of higher learning as students pushed for #FeesMustFall.
These challenges were accompanied by signs of weakness in the broader economy, higher unemployment and indications that the government’s fiscal space was narrowing. Even so, these challenges proved not catastrophic. Even when there was uncertainty about the legal processes involving the Finance Minister, Pravin Gordhan, the country still managed to avert a sovereign rating downgrade.
I am heartened by some of the initiatives implemented by the Johannesburg Chamber of Commerce (JCCI) this year, including the convening of our annual conference in September under the theme: “Inclusive Growth Through Key Stakeholder Partnership”.
Representatives of business, government, labour and civil society discussed mechanisms to obliterate perceptions associated with trust deficit and strengthen the commitment to work together in solving our growth challenge.
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All parties also acknowledged the urgent need to reignite economic growth, boost small business, integrate the township economy into the mainstream economy and create alternative funding mechanisms for entrepreneurs such as the 4 Africa Exchange. The goal for these measures and others is to create jobs to reduce unemployment, which stood at an alarming 27.1 percent in the third-quarter of 2016.
This unemployment figure will grow as more young people wrap up high school or graduate from university early next year. Many will be confronted with the reality that securing a job is a near impossible task. It is this backdrop that has the JCCI pinning its focus on creating an enabling environment that makes it possible for business to thrive, and thus create the necessary opportunities for job creation.
I am pleased that many of our core initiatives to this end are under way, and next year should bring a new impetus to our efforts to assist enterprises and aspirant entrepreneurs. The memorandum of understanding that the JCCI signed with the Gauteng department of economic development is the clearest indication that business acknowledges that growing the economy is a collective effort. For our part, we are looking to re-double that effort in the new year through bringing our collective capacities to bear as well as various partnerships.
History
The JCCI celebrated its 126th anniversary this year. Although we were founded in Johannesburg with a history that is closely interlinked with that of the City of Johannesburg and Gauteng, our reach has for many years been global and Pan African, hence our affiliation to the International Chamber of Commerce in Paris. It is for this reason that one expects next year to bring about more opportunities for our members to leverage our expertise and resourcefulness to chart a new path towards the development of a more sustainable economy.
The Provincial Political Report by the Gauteng Premier, David Makhura, underscored progress made on the developmental front. He said the province had allocated about R44 billion for infrastructure development over three years.
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This commitment, I believe, should go a long way towards job creation. Our work in the townships is also starting to bear results as we deepen our partnerships to support local entrepreneurs. At our conference in September, the JCCI resolved to create a mechanism that would ensure better co-ordination, execution and monitoring of efforts aimed at driving inclusive growth through strong stakeholder partnerships. I am happy say this mechanism is taking shape.
The key areas of focus next year will encompass the sectors that the stakeholders have identified as most likely to fuel job creation. Commitment from the government is that of creating an enabling environment to foster investment and instil confidence. I believe that this is one of the critical pillars of the partnership for sustainable growth. With 2017 on the horizon, I am confident we will see commitments made this year bear results.
Ernest Mahlaule is the president of the Johannesburg Chamber of Commerce.