Gareth Ackerman, Pick n Pay chairman and co-chairman of the Consumer Goods Council of South Africa (CGCSA), has called for enhanced cooperation between the Government of National Unity (GNU) and the private sector to tackle the country’s persistent economic stagnation and infrastructure deficiencies.
Speaking at the CGCSA’s annual summit yesterday, Ackerman emphasised that achieving economic growth—hovering at a dismal average of 2% over the past decade—required a fundamental shift in governmental approach.
“We have a long way to go and the last decade or more we have regressed economically and growth has averaged about 2%, yet we actually need growth of 7%,” Ackerman said.
“We need a mindset change in government and learn from countries such as India which has defined the role of government versus the private sector. Government should set policies and let the private sector to implement.”
He urged that South Africa should learn from countries such as India on how to delineate the roles of government and business, advocating for a model where government sets forth the policies while allowing the private sector to spearhead implementation.
Ackerman expressed cautious optimism about the GNU’s current trajectory, recognising promising developments in departments like Home Affairs, which is actively addressing visa and permit backlogs.
He is among many business leaders who have been encouraged by the speed with which the GNU is willing to implement structural reforms, as also indicated by recent business confidence indices.
“Things are coming back slowly with the GNU and I hope it will be positive for the economy,” Ackerman said, stressing that such partnerships are crucial for overcoming economic challenges, particularly regarding electricity supply.
His reference to Eskom’s uninterrupted power supply for over four months illustrates how synergistic efforts between the private and public sectors could prove beneficial.
As the CGCSA’s summit progressed, Ackerman reiterated the importance of public-private partnerships in areas like crime, job creation, and infrastructural development.
“We need to allow and enable the private sector to invest within the policy and regulatory framework.”
He underscored that businesses must take proactive steps in their communities, such as repairing and maintaining essential infrastructure, in order to mitigate the adverse effects stemming from past hardships, particularly regarding load shedding.
“We as businesses have the power to do something and these are things business can fix,” he said, also reiterating the need for the consumer goods sector to adapt its operations, including embracing technology to remain relevant in an evolving market.
Busisiwe Mavuso, CEO of Business Leadership South Africa, echoed Ackerman’s sentiments but with a more urgent tone.
Mavuso emphasised the necessity for the government to act swiftly in addressing structural issues facing the economy, such as logistics, water, and energy constraints.
She warned that while SA is not yet a failed state, it will if these basics are not addressed.
“The country needs to turn the corner; it is about the 65 million (in SA), it is about 43% unemployment when you use the expanded definition of unemployment and it is about 65% youth unemployment, which is the biggest risk as a country,” Mavuso said.