Ladies and gentlemen

Monde Ndlovu the Managing Director

 All protocol observed,

My name is Phumzile Mgcina, as they introduced me—a woman from Newcastle who has dedicated her life to serving the people of South Africa and building a better society for all.

I have made a pledge to live for the development and transformation of our society.

This year marks the 30th anniversary of South Africa's achievement of political freedom, a milestone reached with the establishment of the ANC government and democratic institutions. This hard-won freedom came at a significant cost, with many sacrificing their lives for the cause.

Since the end of apartheid and the beginning of democracy 20 years ago, South Africa has made remarkable progress. Despite a history of racial inequality and civil unrest, the country defied expectations by negotiating a peaceful transition to democracy and laying the foundation for an inclusive society. Under the leadership of the ANC, led at the time by President Nelson Mandela—the nation's first democratically elected president—South Africa's leaders united to accomplish this historic goal, one that many thought was impossible. Today, we celebrate three decades of democracy, a testament to the vision and wisdom of South Africa's leadership.

 As we mark 30 years of freedom, we must also acknowledge that true economic transformation remains out of reach. Last year, the World Bank, through the Southern African Customs Union (SACU), reported that South Africa is the most unequal society in the world. This inequality is so stark that it's visible to ordinary citizens.

 Adam Smith, the founder of capitalism, argued in his first book that businesspeople have a duty to care for society. In other words, those who run businesses are responsible for the well-being of their communities. Yet, this principle is not always upheld today. Dominic Barton, former Global Managing Director of McKinsey & Company, has shared his deep concern over this inequality, saying it affects him to the point that he struggles to sleep, warning that our society may eventually revolt. This sentiment is echoed by South African businessman Antoni Rupert, who said, "If your neighbor does not eat, you will not sleep," suggesting that South Africa faces a ticking time bomb.

To accelerate the transformation of our professional and economic landscape, it is essential for both the private and public sectors, along with the government, to join forces in building the society we envision.

 Our country is facing financial challenges, with a budget deficit exceeding R300 billion. To address this, we need patriotic businesses that can unite all stakeholders, including the government, to help build this envisioned society.

Our government has established a National Development Plan (NDP), which focuses on tackling inequality, poverty, and unemployment. A critical step toward reducing historical inequalities and building a more inclusive economy has been the significant progress made in providing essential services to a broader population. These services include access to primary and secondary education, the expansion of primary healthcare, and the provision of electricity and water.

Equally important, South Africa's constitution has become a model of inclusive governance, with its strong emphasis on the socioeconomic advancement of all South Africans. These progressive steps taken by our ANC government aim to address the legacy of apartheid. This robust framework, along with institutions such as our highly regarded judiciary, has been key in creating a business environment that supports the growth and expansion of multinational companies in our country.

Today, Africa holds over 20% of the global population, yet more than 600 million people across the continent still lack access to electricity. In contrast, 94% of South Africans have access to electricity. In terms of transformation, there has been significant progress in integrating the majority of South Africans into a new South Africa since the late 19th and 20th centuries.

Despite a challenging history of inequality and exclusion, South Africa has maintained steady economic growth and has begun reshaping its economy to better serve its young and growing population in the 21st century.

South Africa's constitution stands as a model of inclusive governance, with a strong focus on socioeconomic progress for all citizens. These efforts by our ANC government have been transformative in addressing the legacy of apartheid. With a robust governing framework and respected institutions like our judiciary, South Africa has fostered a business environment that encourages the growth and expansion of multinational companies.

From 2002 to 2012, South Africa's economy grew by approximately 3.6% per year, and per capita incomes rose by about 2.2% per year. However, the growth has largely depended on commodity exports and mining, leaving the country vulnerable to external economic forces.

Despite this growth, significant challenges remain, especially for our youth. Youth unemployment is particularly high, with 64% of the 12 million unemployed people in South Africa being young people.

Our country needs growth that attracts investment and facilitates technology transfer, driving long-term economic development and the creation of higher[1]paying jobs—changes that will empower people to transform their lives. This represents an accelerated transformation of our country.

As a government, we are fully aware of the challenges our country faces, and we have carefully assessed our social landscape.

South African leaders are keenly aware of this challenge and have done the analysis: with a doubling of per capita income growth, South Africa could reach a similar income level to Portugal or Poland within just 17 years. South Africans have articulated their vision for the next 20 years—a vision that is both ambitious and inclusive. It aims to accelerate progress, foster a more inclusive society, strengthen democracy, and transform political freedom into economic prosperity for all. However, with economic growth averaging just 0.8% from 2019 to 2024, South Africa has faced challenges in achieving the productivity needed to create sufficient jobs.

Under the 7th administration, we have a clear understanding of the steps required to stimulate economic growth. The efforts of the Government of National Unity (GNU) under this administration have been evident through the consolidation of Operation Vulindlela, led by the National Treasury to unlock key drivers of economic growth. According to a PwC report on the economic outlook, our country has made notable progress since the formation of the GNU.

Ladies and gentlemen,

 Building our country will require the collective effort of both the government and businesses. South Africa's businesses must start making substantial investments in our country to help grow the economy. Businesses should not only step forward in times of crisis, as we saw with the CEO pledge before the elections from large companies with a market cap exceeding R1 trillion, or with the 2017 CEO letter criticizing the leadership of that time. However, when the cost of living skyrockets and unemployment continues to rise, businesses are often absent, failing to be a voice for society.

Our vision of accelerating transformation and growing our economy is achievable. As history shows, from 1950 to the end of the 20th century, only 13 economies worldwide grew at an average rate of 7% per year or more. The success of these countries was built on strong and stable macroeconomic policies. Stable economic environments supported reforms in resource allocation, pricing, and labor policies, which enabled productivity gains and the emergence of new, more productive firms, serving both domestic and export markets.

However, the current situation presents new challenges, including the effects of global warming, the rise of Generative AI, climate change, fluctuations in commodity and manufactured goods prices, a growing youth population in developing countries, and uncertainties in global governance. Additionally, the rapid acceleration of technological change—merging the digital and physical worlds—is profoundly impacting design and production methods, demanding a workforce that is more creative and entrepreneurial.

 With the challenges we are facing, we can look at the 87-year-old automotive giant Volkswagen (VW), which has always dealt with competition since its founding. Growing up, VW was seen as a symbol of Germany's heritage. However, today, VW is struggling to survive due to the competitive innovation in New Energy Vehicles. Last month, its CFO stated that radical steps are needed for the company to survive—and we all know what that means, much like when McKinsey & Company is called in, signaling large-scale layoffs.

I keep asking myself why an 87-year-old company like VW is struggling in today's market. The main reason is that they became too comfortable while innovation from other competitors took center stage. Today, VW cannot compete with Chinese Electric Vehicles that feature advanced battery systems and carbon, while their competitive advantage has traditionally been in engines and engineering.

Ladies and gentlemen,

The way I relate this story to our lives today is that new technological trends present both a significant threat and an opportunity for our country. I firmly believe that challenges always come with opportunities. As the saying goes, when the wind blows hard, some people build a wall to block it, while others build a wind turbine to generate electricity.

I believe that our country has the potential to turn the challenges we face into opportunities, driving the accelerated transformation of our nation under the 7th administration. In my department, we are focused on developing in-house skills and seeking partnerships with various technology companies as we undergo a digital transformation. This will enhance our efforts in inspections and enforcement.

 Additionally, we are taking significant steps to modernize the Unemployment Insurance Fund (UIF), rethinking its mandate to align with the responsibility President Ramaphosa entrusted to our department—to create jobs. Soon, we will be launching over 20,000 junior inspectors to conduct mass inspections across businesses. We believe that by collaborating with businesses, we can improve compliance and contribute to the overall growth and development of our economy.

We are also working to improve the business environment, particularly for small and medium-sized enterprises (SMEs) that can integrate into both local and global supply chains. We believe that many job opportunities lie within the value chains of businesses, as small enterprises can play a crucial role in these chains. SMEs, as a whole, are significant job generators and contribute to creating a supportive climate where entrepreneurs can grow and thrive.

To succeed, businesses need an environment that provides both market opportunities and the support necessary to achieve the quality, volume, and reliability required to meet the demands of global supply chains. Therefore, our department is working closely with the Department of Small Business Development to ensure that, while we enforce inspections, we also support small businesses in their growth and success.

 Ladies and gentlemen,

South Africa faces many challenges, but its people have already demonstrated resilience, creativity, and the ability to envision a better future. As we advance the transformation of our economy, we need resilience and unity among South Africans. I have no doubt that, together, government and businesses can succeed. Let us seize the opportunities within our challenges and strive for a better South Africa.

I thank you​

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