Spotlight falls on transformation of state and economy

The role society, businesses and universities should play in transforming the state and economy was the core of former deputy finance minister Mcebisi Jonas’ speech at the Purchasing Consortium Southern Africa (Purco) conference yesterday.

Jonas delivered the keynote address for the consortium, which represents public universities and their allied institutions, as well as private higher education institutions and TVET colleges, at the East London ICC.

The conference began yesterday and runs until tomorrow.

More than 300 delegates from across the country have gathered alongside business industry leaders and small business-owners to discuss enterprise and supplier development in institutions of higher education, and in society at large.

He was addressing how higher education leaders and business influencers can work together with other stakeholders to achieve economic transformation.

“We must accept that our economic model is not working.

“We are failing to get the necessary growth returns, and millions of South Africans remain excluded from the economy.

“Patterns of inequality have remained, unemployment continues to rise. Fortunately , this is happening in the full public glare.”

Jonas described South Africa as a fragile economy that has become heavily reliant on “unreliable sources of foreign investment” to finance its growth ambitions.

“The reason for this has to do with the structure of the economy, and the failure to implement the necessary economic reforms.”

“Both government and citizens of SA are heavily indebted, which makes us extremely vulnerable.

“We could fund the annual budget of an additional two provinces, or provide the additional costs for free higher education for the next five years, on what we spend on debt servicing in one year.”

Jonas spoke of a “resource curse” in the country.

He said South Africa was still relying on traditional income sources instead of prioritising innovative ways to grow human and technological capabilities.

“We need to radically increase levels of economic participation among the majority of citizens who remain locked outside the economic mainstream.

“We need to find ways to make small firms and start-ups more productive and competitive, reduce costs and red tape, and address other real constraints to doing business.”

In the address Jonas said civil society, business, political and social movements, trade unions and universities should all play a role in combating the corruption that threatens both the state and the economy.

“We must play a more deliberate role in positive social and economic transformation,” he said.

Speaking to the Dispatch, Purco chief executive officer Selvan Govender said the conference brought together different community players in an effort to bring lasting transformation to the economy.

“This conference will be engaging with field experts to share experiences with delegates present so that they can go back with tools on how to implement enterprise and supply development on a practical basis.

“It is critical to understand what’s happening in the public space and be active roleplayers.

“We need to focus on issues prevalent in order to make a difference in communities around us.”

Purco regional chairman Luyanda Mema said: “We as Eastern Cape are excited to have this conference in Buffalo City, especially because of the revenue it will bring in to our local economy.

“This province has produced leaders that have always given direction to the country, and we want to remain at the forefront.

“We hope this conference will come with practical insights and tangible solutions and interventions in directing how our communities can be developed throughout.

“Whatever we do must speak to the broader picture of building a state that is capable.” — nonsindisoq@dispatch.co.za