Business Leadership South Africa 'worried' about the future of the country after elections

Bruce Whitfield speaks to Busisiwe Mavuso, CEO of Business Leadership South Africa.

2024 is a milestone year for South Africa, celebrating 30 years of democracy.

It was in 1994 that every South African, regardless of race, gender and creed were allowed vote in the first ever democratic elections. 

Newly elected president Nelson Mandela, only four years after his release from prison was leading an optimistic nation into a bright future.

But as Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA) writes in her weekly column, 'our 30 years of freedom divide into two eras: a first half of remarkable transformation in which the economy and business leaped forward, benefitting from the end of apartheid and our reintegration into the global economic system; and then a second half of regression, with our state institutions hollowed out and declining economic fortunes.'

According to statistics, by 2008 South Africa was regularly recording economic growth of over 5%, boasting an investment grade credit rating and had a sovereign debt:gdp ratio of 24% as well as an unemployment rate of just under 20%. 

Unfortunately, the global financial crisis of 2008/2009 and the coming into office of Jacob Zuma signaled the beginning of a dark, turbulent time for South Africa. the next 15 years would be charecterised by state capture, loadshedding and corruption. 

Speaking to Bruce Whitfield on The Money Show, Mavuso says these were both seminal moments in the county's economic future. 

She says it was a time when competent leaders were removed because they refused to 'buy into' Zuma's 'state capture era'.

"...when I reflect on this, it's amazing how over-exaggerated leadership and governance seems to be, until they're no longer there. These are the two critical ingredients we dared to mess with. 

- Busisiwe Mavuso, CEO - Business Leadership South Africa

"...and now we are sitting with people who have been hired on loyalty..." 

- Busisiwe Mavuso, CEO - Business Leadership South Africa

She warns that a possible coalition government following the 29 May elections could lead to more economic instability.

The ruling ANC is projected to lose further ground, with the likes of the DA, EFF and other new smaller political parties such as Rise Mzansi, Bosa, Umkhonto WeSizwe and FF+ set to benefit from the ANC's losses.

This could result in a coalition government needed to be formed, which will be a first ever in a democratic South Africa.

Mavuso says this could be disastrous. 

"...we are worried about what the 7th administration is going to bring. We are worried about the instability."

- Busisiwe Mavuso, CEO - Business Leadership South Africa 

"...we are worried about how unstable the coalitions are."

- Busisiwe Mavuso, CEO - Business Leadership South Africa

"We can have the government, business partnership. We can do whatever we want to do as a South African society, but the critical ingredient is leadership. 

- Busisiwe Mavuso, CEO - Business Leadership South Africa

Scroll to the top to listen to the interview.