It’s hardly surprising – given our lacklustre economic
growth that really benefits no-one and is hardly inclusive – that some people
are anti the World Economic Forum (WEF) meeting in Durbs.
WEF Africa 2017, which ends on Friday, has seen more than
1 000 important leaders gather at the Durban International Convention
Centre to hash out topics around the theme of “Achieving Inclusive Growth
through Responsive and Responsible Leadership”.
And therein lies the rub – inclusive growth.
Frankly, we have to do something to jump start the
economy.
South Africa’s gross domestic product grew a measly 0.3
percent last year, and – with a bit of luck – will grow by about a percent this
year.
Hardly, as I’ve noted before, the sort of growth that’s
inspiring and will create jobs.
Which is maybe why so much of the talk coming out of WEF
Africa this year is around Africans working together – to the benefit of all
Africans.
Africa, as a whole, is expected to grow at less than 5
percent this year – less than what it gained over the previous decade. Yes,
there will be pockets of growth, but the gains will be nothing like the growth
that made the continent look like the Promised Land for expansion.
Africa’s growth is coming off because of a recent slump
in commodity prices, and the economic slowdown in China. While these two
external factors have weighed on growth – and both are picking up – Africa also
needs to look towards herself for growth.
Let’s face it, we don’t trade nearly enough with our
neighbours.
Finance Minister Malusi Gigaba pointed out just before the
start of WEF that intra-African trade is shockingly low at
about 11 percent, while intra-Asian and North American trade is both at 40
percent.
The problem is, while Africa has the resources, it
doesn’t have the infrastructure. It is in dire need of roads, and those are
expensive to build. Too many countries don’t have ports, which means relying on
shoddy roads to truck vast amounts of products many many thousands of
kilometres to get to a port.
(That’s why Transnet is so chuffed with itself,
and sees itself as an access point for Africa to trade with the rest of the
world.)
In addition, about 60 percent of Africans
still don’t have electricity.
Lack of investment
What all of this speaks to is a serious lack of investment.
Granted, much of the blame lies in colonialism, but blaming history doesn’t
solve our immediate issues.
We need to invest, and we need to do so smartly, and in
collaboration – as Gigaba said. I’ll add a rider to that – we need to invest as
a matter of extreme urgency.
And we need to invest not just in infrastructure, but
education and technology also, because the fourth industrial revolution is
coming, at a rate of knots.
I don’t know where we’ll get the money, but if we look at
collaborative investment – a model can be developed.
Because then we can take advantage of all we have to sell
the world and our neighbours. Our smarts, our inventions, our resources, our
skills… the list is almost endless.
And we need to get a move on, because the theory of
trickle down economy is not only broken, it’s leaking.
The problem with that theory is that the rich get richer,
but generally don’t invest in anything that will help the poor. (Unless they
are big on philanthropy, and then tend to shout to the world about their good
deeds.) Instead, they invest in things that will make them richer.
This is among the reasons, I suspect, is why civil society took to
the streets as WEF started. Although concerned about climate change,
they also called for people to be put ahead of profits.
If we want inclusive growth that benefits all, we need to
collectively invest so that all Africans can benefit.
* Nicola Mawson is the online editor of Business
Report. Follow her on Twitter @NicolaMawson or Business Report @busrep.
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