The following article was published in the 11 April 2015 Engiish and Afrikaans editions of Finweek

How SA Can Achieve Growth Of 5.4%

South Africa needs to change its social and economic architecture to boost economic growth, as the benefits of economic integration over the past two decades are now exhausted, says Adrian Saville, chief investment officer at Cannon Asset Managers and professor at the Gordon Institute of Business Science (Gibs).

"South Africa has gone backwards in the past couple of years,” he says.

The country needs to focus on improving economic openness, policy certainty, social welfare, life expectancy, education, health delivery and build a savings culture to help boost investment.

To meet the National Development Plan target of 3 GDP growth rate of 5.4%, Saville suggests three changes:

  • Improving fixed investment rates, which will require improved confidence in the public sector. Public sector delivery combined with private sector investment can help boost economic growth rates to 4%, Saville says.
  • Increased openness and connectedness through improved trade, capital flows, information flows and allowing the free movement of people (TCiP).
  • Social and economic inclusion matters more than achieving the growth rate of 5.4%, Saville says. The country's Gini coefficient remains the highest in the world, while the country faces high levels of unemployment.
  • Hoe Suid-Afrika Groei Van 5,4% Kan Behaal

    Suid-Afrika moet sy maatskaplike en ekonomiese stelsel verander om ekonomiese groei te versterk, want die voordele van die afgelope twee dekades se ekonomiese integrasie is nou uitgeput, sê Adrian Saville. beleggingshoof van Cannon Asset Managers en professor aan die Gordon Institute of Business Science (Gibs).

    "Suid-Afrika het die laaste paar jaar agteruitgegaan," sê hy.

    Die land moet daarop konsentreer om ekonomiese openheid, beleidsekerheid, maatskaplike welstand, lewensverwagting, onderwys en gesondheidsdienste te verbeter, en om 'n spaarkultuur op te bou wat investering aanhelp.

    Om die Nasionale Ontwikkelingsplan se teiken van 'n BBP-groeikoers van 5,4% te bereik, stel Saville drie veranderinge voor:

  • Verbeter die koers van vaste investering, wat groter vertroue in die openbare sektor vereis. Openbare dienslewering saam met privaatsektor-investering kan die ekonomiese groeikoers tot 4% help versterk, sê Saville.
  • Groter openheid en verbondenheid deur beter handel, kapitaalvloei, inligtingsvloei en om vrye beweging van mense toe te laat.
  • Maatskaplike en ekonomiese insluiting maak meer saak as om die groeikoers van 5,4% te bereik, sê Saville. Die land se Gini-koëffisiënt bly die hoogste ter wêreld, terwyl die land 'n hoë werkloosheidsvlak het.