Organised business should flex its muscles and play a more active role in pushing for much-needed economic policy reform, according to the latest research report from the Institute of Race Relations.
The IRR’s 2025 ‘Blueprint for Growth’ provides a frank appraisal of the current state of the economy, which is suffering from chronically low levels of investment, the report says. In discussing the numerous obstacles to growth, the report highlights the vital role of the government-business relationship in shaping future policy and economic performance.
A more outspoken business sector could help address the many urgent challenges, particularly at a local government level where service delivery is sadly lacking throughout much of the country, the report says.
“One area where business might fruitfully invest some effort is in resuscitating the local-level business chamber movement.”
“Since much of South Africa’s failures are most acutely visible in its municipalities, a strong voice for business is critical. Given the dysfunctionality of much of the municipal sphere, though, business would need to go beyond attempting to interact with the municipal leadership.
Rather, business would need to explore creative options for partnerships with interlocutors in civil society and at other levels of government,” the report says.
The historical ‘adversarial’ tone of government-business relations needed a reset to reflect the shared goal of economic growth, the IRR says.
Such a move was a “necessary part of the modernisation process that is essential to South Africa’s progress.”
“Business is hardly without influence, and nor would the positions it might take with regard to policy positions necessarily be unpopular. This was suggested by the evident blowback that followed President Ramaphosa’s signing of the NHI Bill into law,” the report says.
Much of the ‘Blueprint for Growth’ document looks at the reasons for South Africa’s current low-growth path and failure to attract investment.
“As long as this persists, it might well see not only its chance at rapid gains eroded, but so too its status as a middle-income country, as its peers become ever more prosperous and today’s less affluent societies position themselves to step into opportunities that these economic shifts create,” the report says.
Why are chambers of commerce still important now?
Because they are funded and run by entrepreneurs. And these are the ones with the broadest knowledge about what the real needs are. Due to their international and supra-sectoral nature, they have the advantage of speaking with the authority that comes from companies in all sectors. They are key actors as institutions in charge of promoting economic activity and promoting business cooperation and investment, which transforms them into agents of cohesion and peace. However, they need the participation of all actors in society and the public powers.
Not all companies, including start-ups and small and medium-sized enterprises (SMEs), have found themselves in a position to switch to digital products and services overnight. In response to the challenge, chambers of commerce and industry have to launch support initiatives to help start-ups stay and grow while navigating exceptional market challenges. Virtual training workshops are also necessary to share guidance and ideas on how entrepreneurs can build or improve their web presence in a short period of time.
“It is still early days for Small and Medium Businesses to claim to have fully recovered to pre-Covid times, and that has left most local chambers of commerce struggling to survive. Local chambers are not receiving support they should be getting nor are they showing any signs of recovery any time soon. The Randburg Chamber of Commerce notes with caution the IRR’s report but wish the report could expand the scope to establish how local chambers are performing, their challenges and if interventions are needed ”. Richard Ntjana, Randburg Chamber of Commerce and Industry CEO