By Dr Celeste Campher

Good morning, ladies and gentlemen,

It is an honour for me to stand before you today to discuss a topic that lies at the heart of the future of South Africa: Achieving an inclusive economy

I think you’ll agree with me when I say that South Africa is brimming with potential—its people, its resources, its diversity and its resilience—and yet we continue to be faced with deep-seated challenges: deeply entrenched inequality, unacceptably high unemployment rates, and persistent poverty.

And so as we gather here today, I believe that we all want an answer to a very fundamental question: “how do we turn our country’s potential into prosperity, and how do we make prosperity work for all South Africans, and not only an elite minority?”

South Africa’s post-democratic experience has been one of significant overhaul in a number of areas. We have institutions, constitutional rights, a functional judicial system and a society that is free to express themselves without fear of retribution. But on the matter of economic transformation and inclusion, we’re not making the grade. Why is this happening?

Before I get deeper into the crux of the topic today, I want to grab everyone’s attention by talking briefly about a topic that is near and dear to all our hearts as South Africans- the Springboks – our national treasure. And allow me to use this analogy to give context to our topic here today.

In 2018, the Springboks were down and out. Divided, disjointed, and in crisis. Dr. Rassie Erasmus stepped in—not just with tactics, but with vision. He united a team across race, class, language, and even ideology. What followed? Back-to-back Rugby World Cup wins (2019 & 2023). But more than that—he built a team that reflected the potential of South Africa: determined, diverse, gritty, and united in purpose.

Now, imagine if our economy could learn from that.

Globally, most economies are not working for most of the people in the world. Although technology is advancing throughout the world, many people can’t get out of poverty and debt traps, people are more stressed out and unsure about the future. So, while globalisation and technology are succeeding in creating an interconnected world, more people are feeling isolated and excluded from the economy.

Furthermore, capitalism which is supposed to generate economic growth and jobs is only favouring those who can generate wealth. Those who cannot generate wealth find themselves excluded from mainstream economy.

In South Africa, most of the barriers to economic transformation and inclusive growth are not external—they are domestic. (1) Economic policies that do not support the principles of the Constitution as entrenched in Section 1, (2) inefficiency in government operations, (3) excessive red tape, (4) administrative and political incompetence, (4) fragmented policy implementation and (5) corruption. And all these, amongst others continue to hold us back as a country and are real barriers to opportunity, progress, and dignity.

So how can we make the analogy of the Springbok rugby team real for an inclusive economy in South Africa.  

If we look at the age-old purpose of an economy, as defined theoretically, it’s supposed to organise society and role players by allowing for the flow of resources and monies such that the collective well-being of society is improved. In economics we talk about the circular-flow model which is a model used to explain the flow of resources and funds amongst the role-players in society. But what happens when a crucial resource/factor of production is excluded from either being used in the productive processes of the economy or excluded from participating in basic transactions in the economy? When this happens, it means that the economy is not living up to its purpose. And this is what is happening in South Africa.

The official unemployment rate has consistently been increasing since 2012 to 2024, more than a decade later, and is currently at the highest rate since 1994. Unemployment and job losses mainly affect the most vulnerable of our society more severely. Food insecurity, defined as running out of money to buy food, is at least twice as high as in 2016, with surveys reporting that 37% of households are affected. Hunger is rampant, and depressive symptoms have doubled. Currently, approximately 70% of adults (18-64) live below the upper-bound poverty line (UBPL) of R1 265 per person per month.

Just like our national rugby team, we have the players, the grit and the will, but yet many of our players will remain on the bench, and as a team we are unlikely to raise the cup.

What we need is an inclusive economy- one that is designed to ensure that ALL individuals and communities, especially those who have been historically marginalised/disadvantaged, have equal opportunities to participate in and benefit from economic growth.

In an inclusive economy- we all need each other- “You can’t be an island of wealth in a sea of poverty”. What made the Springboks special wasn’t just the players—it was the culture of having a unified vision and a coach who turned this vision into success. So too, we need leadership that does what Dr. Rassie did: create a plan, build a team, and deliver. Dr. Rassie Erasmus called it like it was. No fluff. No spin. Just straight talk and accountability. SA governance is plagued by buck-passing, red tape, and corruption.

Economic literature tells us that in order to achieve an inclusive economy, it requires that we reinvent the science of economics. Economics as we know it, now needs to move beyond a solely growth-centred approach to one that is both progressive and productively inclusive for all members of society. But can we honestly apply this radical approach to economic growth in South Africa? Let’s face it, our economic growth rates are dismal. South Africa’s GDP growth rate for the first quarter of 2025 is reported as a marginal increase of 0.1%, following a revised increase of 0.4% in the fourth quarter of 2024. This indicates a slowdown in economic growth compared to the previous quarter. For the full year of 2024, the growth rate was 0.6%, according to Statistics South Africa. So, while some critics and economists may argue over whether the bread is buttered or not others will argue that there is no bread on the table in the first place. I want to argue that there’s no bread on the table because not everybody is included in the production process. Rassie uses every player in his team- even when at times we would prefer he rather not use Manie Libbok!

In his book titled- “An Inclusive Economy”, my colleague and dear friend, Dr. Arno Van Niekerk talks about an inclusive economic indicator called the GPI (Geniune Progress Indicator- SLIDE). Where, the commonly known indicator GDP focuses only measuring output the GPI adjusts GDP by accounting for factors like income distribution, environmental costs and the value of unpaid work. This indicator provides a more comprehensive picture of economic well-being. So, while GDP is a measure of current income, GPI measures the sustainability of that income. Genuine progress ensures inclusive development which means improving the quality of human life while nurturing the capacity of our supporting ecosystems. The GPI highlights a vital principle: people are the real wealth of a nation and human development is all about enlarging their choices.

How can we achieve this type of holistic and inclusive economic growth?

Opportunity 1: Investing in Human Capital—But Realistically, Responsively and Responsibly

Dr. Rassie didn’t say to his team: “I’ll only pick those who are ready and able now.” He said: “I’ll prepare those willing to fight.” And he nurtured and empowered the raw talent in his team.

One of the most significant assets South Africa possesses is its people. South Africa has a relatively young population, and our young people are dynamic, energetic, resilient and increasingly educated. But if we keep under-investing in vocational training and don’t ensure that educational output is aligned with market demand, we are setting them up for failure. Although the generic/mainstream bachelor’s degree programmes are putting bums in seats at the higher education institutions- these generic qualifications are not placing graduates in jobs. Recent reports claim that employers are opting to replace entry-level jobs with AI and as a result unemployment rates among young graduates are increasing. So, the problem is not that our young people are not educated and qualified, the problem is that these qualifications are not necessarily appropriate nor relevant. And as an academic this is a grave concern for me.

We now find ourselves in an era where we cannot run away from AI or digitalisation, so we need to incorporate these into our curricula at primary school level already, and in order for that to happen this first needs to be incorporated into the training and education curricula of educators at institutions of higher learning.

And if the labour market is not able to absorb graduates then we should rather be churning out graduates that are self-employable and who will ultimately become employers. Here we all have a responsibility to drive vocational skills training and entrepreneurial skills development. (I don’t think our youth know how much plumbers and electricians can earn, and so the notion or perception of young people that vocational skills are inferior skills needs to be challenged and changed).

But if we want skills development programmes and educational policies that address market demand then we need training authorities that are effective and efficient. Government-sponsored training programmes too frequently are beset by mismanagement, lack of alignment with the needs of industry, and insufficient monitoring. I was fortunate to recently be involved in a project where we did a skills audit for the Free State province on behalf of the PSETA. In our audit we found that the province is experiencing a growing need for digital transformation expertise which remains largely unaddressed. Participants in the audit also mentioned that there is a definite mismatch between job skill requirements and the content taught in the curricula at higher education institutions. Higher education institutions must work far more with public and private enterprises to create curricula that lead to jobs, not just certificates. The SETAs (Sector Education and Training Authorities), for example, need to be transformed to be centres of excellence, not centres of corruption or inefficiency.

Human capital investment is very vital for greater inclusion of the poor in income-generating opportunities and thus in achieving pro-poor growth which is focused specifically on improving the incomes of poverty-stricken people.

Opportunity 2: The Way We Do Business Must Change

This implies for SME’s, private sector, government institutions and civil society.

An inclusive economy consists of inclusive businesses- these businesses aim to achieve both commercial success (because we still want businesses to be profitable right) but also create a social impact by creating opportunities for economically disadvantaged. Real growth shouldn’t just lie in increasing material output but in the value generated through improving human relations and their connection with nature. Large companies like BMW are seeing that there is value in selling one BMW one thousand times, instead of selling 1000 BMWs. Furthermore, by adding business practices such as resource efficiency, waste reduction, and continual use of materials and products- there is money to be made by involving the poor in recycling, upcycling and repair- “One man’s trash can really be another man’s treasure” and by doing this we can turn the problem of waste into an opportunity for sustainable income generation. Big businesses can involve smaller businesses and even the communities where they operate in the value chain by providing them with their waste. Waste management projects for economic gain can be initiated by big businesses and can even be incorporated into educational programmes at schools. A rubbish dump- something that is an eye-sore in most lower income communities can become attractive investment destinations. 

Small and Medium Enterprises (SMEs) are the lifeblood of inclusive economic growth. Yet, most business owners will tell you that setting up a business in South Africa is like navigating a maze blindfolded. The red-tape is overwhelming. From registration of companies to tax clearance, to obtaining permits, to accessing government grants—the process is all too often marked by delays, contradictory demands, and obstructive officials. In Australia, the online registration of a company takes between 24 to 48 hours, while this can take up to 16 weeks in Brazil and 3 months in China. In SA it can take up to 21 days, not too bad if we compare ourselves to our BRICS counterparts. But it is a harrowing 21 days nonetheless, and here I speak from experience.

If we are serious about economic inclusion, we must simplify the regulatory environment for SMEs, particularly in the townships. Government portals must function and be responsive. Officials must be trained, and systems must be digitised, integrated, and user-friendly. Entrepreneurs should not need a lawyer and an accountant just to open a spaza shop.

Kasinomics has taught us that the township economy is a resilient part of the informal economy which consists of a tightly networked social community with an eclectic mix of business ideas which address the critical needs in that society. There is potential here, it’s up to us to use it inclusively.

Opportunity 3: Infrastructure Development—Faster, Fairer, Smarter

Even the greatest rugby team cannot win on a broken rugby field. And like rugby boots with no grip, poor infrastructure holds back progress.

Infrastructure is a wonderful enabler of economic inclusion, but only if it works. We need roads, rail, ports, energy, and broadband—but too many projects are stalled due to poor project management, lack of coordination between departments, and rampant corruption.

It is unacceptable that basic infrastructure in rural areas is left unfinished due to contractor fraud, corruption in tenders, or simply a lack of oversight. The construction and water tanker mafias in South Africa are real and dangerous, yet Big Brother is turning a blind eye to the crippling activities of these rogue units. South Africa does not have a money problem—it has a delivery problem. We must professionalize procurement processes, and infrastructure rollouts should not serve as political campaign boosters only. Let’s start by holding all implementing agencies accountable. When infrastructure is postponed, development is also delayed.

Opportunity 5: Embracing Green and Digital Economies—Without Exclusion

The global economy is rapidly digitalising and greening. These trends offer us fantastic opportunities to leapfrog old systems. Yet, digitalisation is more of a buzzword and vanity project and South Africa is still lagging behind with respect to these aspects.

In the majority of rural areas, a lack of internet, digital literacy, and basic infrastructure disconnects millions of individuals from these opportunities. Similarly, the green economy must not leave behind those communities that are dependent on coal or traditional agriculture. Instead, we need to empower such communities to transition to renewables or innovate.

In this regard government must operate not just as a regulator, but also as an enabler and equal partner in innovation. In Ghana, for example, the state has implemented various social innovation initiatives to assist the hundreds of rural cocoa farmers to transition from their dependence on the declining cocoa sector by supporting societal well-being outcomes. So here the state is being proactive by realising that thousands of cocoa farmers will perish if the cocoa sector collapses and as such they are implementing innovation initiatives to provide these farmers with sustainable income generating opportunities.

Ladies and gentlemen, inclusive economic growth is not a mystery. We have the plans. We have the talent. We have the resources. All we lack is effective, ethical, and efficient implementation.  To transform South Africa fundamentally, we must embrace a culture of inclusive growth that is:

People-centred, not only money-driven.

Results-oriented, not politically driven.

Transparent, not transactional.

The moment has arrived for us, as government leaders, stakeholders, and citizens, to move from red tape to real results—to build a South Africa where growth is not only possible but inclusive, empowering, and sustainable.

“Stronger Together isn’t just a slogan—it’s an economic model.”

Thank you.