What should be on South Africa’s to do list for 2025? My list for South Africa range from dealmaking to getting Transnet on track to improving the plight of youth.
And no doubt most South Africans have been pondering what the year ahead will hold.
This comes after the volatility we have faced in the past few years—from Covid-19 to the cost-of-living crisis, feeling poorer in the pocket, and the changes that the Government of National Unity (GNU) has ushered in.
And, indeed, this year started with a bang for South Africa, with President Cyril Ramaphosa attending the World Economic Forum as the country’s prospects improved.
At the beginning of last year, the government remained silent on why the president failed to attend, but we all know it was embarrassing to be South African in 2023 and early 2024. The Eskom power crisis made us ashamed to hold our heads up. It excluded us from being real dealmakers, leaving us instead as the poor Oliver Twist in Dickens’ tale, holding out a begging bowl for investment.
Deal making for investment
But with the power crisis receding—more than 300 days load-shedding-free and counting—Ramaphosa could stride into Davos last week with confidence and attractive investment propositions.
With Africa’s vast population and potential consumer spending power, as populations in advanced economies decline, it would be foolish for America to cut us off, despite South Africa’s spotty international diplomacy record.
And South Africa, as part of BRICS, alongside its allies, holds a strong position—if our leaders can play a good diplomatic game and avoid messing it up with questionable deals, such as the Lady R affair.
Despite a national inquiry rejecting US claims that the Russian cargo ship was loaded with South African weapons, trust in the government remains low after the era of State Capture, despite the GNU’s hopes.
It doesn’t help that corruption charges could be levelled against South Africa's Minister in the Presidency, Khumbudzo Ntshavheni, while Justice Minister Ronald Lamola is also under investigation for the same cancer that ails our country.
I digress. The point is that South Africa needs to be squeaky clean this year and do everything in its playbook to bring investment to our shores, especially as we host the Group of Twenty (G20) later this year.
While investors may regain confidence in South Africa after the self-inflicted power crisis, ensuring that the environment allows investment to flourish is key—this includes tackling issues like visas, red tape, and more.
The G20 is set to bring the world’s most powerful decision-makers to our shores, offering a major opportunity. Before attending WEF, Ramaphosa highlighted this, and indeed, all of South Africa’s business ambassadors went with an eye on partnerships and dealmaking for 2025.
Billions of rand are in the offing for the bold.
Adrian Gore, Discovery’s CEO, observed at Davos that sentiment from big investors towards South Africa is more favourable.
One must also put this into the context that, with Donald Trump back in power in America, we are in for serious disruption. I am actually excited about that, despite the threat of tariffs against BRICS nations.
Tech and crypto
Fast-tracking crypto regulation on a world stage and getting red tape sorted out makes sense in the age of AI and technology.
Also in the spotlight last week was the potential for central banks to hold Bitcoin as a strategic reserve alongside traditional gold reserves.
Central banks have been piling into gold since 2000 due to the volatility of geopolitics. It is a sensible thing to do.
Trump has excited investors who back cryptocurrency, promising he will be the “crypto president,” throwing the cat among the pigeons of the more risk-averse naysayers.
However, I was equally horrified and taken aback when South Africa’s Reserve Bank governor, Lesetja Kganyago, came across as a bit of a country bumpkin, dismissing outright the idea of the government having strategic Bitcoin reserves. Kganyago instead suggested other reserves such as platinum, coal, or beef.
This, in my eyes, sends out a bad image of South Africa as an unsophisticated financial market stuck in the past.
We have a thriving investment community that understands Bitcoin. For a central bank leader meant to regulate cryptocurrency, what he said sent the wrong message.
I am not suggesting Bitcoin should yet be part of South Africa’s reserves, but like it or not, the world is moving in that direction, and at some point, it will be inevitable.
You only have to look at the excited faces of the billionaires backing Trump to know that this elite group will take Bitcoin usage up a notch.
It is rumoured that Elon Musk may soon announce the launch of his Bitcoin, called “X Money,” which could use or support Bitcoin, crypto, or dollar-pegged stablecoins. It will also be a payment platform.
Mark Zuckerberg, Jeff Bezos, and the US tech elite will sooner or later go down this road and compete in this arena on their platforms.
This, while Kganyago has “a beef” with it—not good at all.
And while crypto is definitely a development to watch this year, South Africa must also push for Transnet to become healthy. The business partnership with government has this on their agenda, but can government and business leaders pull it off? One really hopes so—and sooner rather than later.
Transnet
While Transnet is front and centre and Eskom is on track, another push that business and government should add to their agenda is the plight of the youth. Youth unemployment is a tinderbox waiting for the right spark to ignite.
Youth
While many businesses’ CSI spend goes towards enabling youth, much more can be done. This should be in the top five priorities of the GNU’s 2025 to-do list. Institutions such as the Maharishi Institute, YES, and Afrika Tikkun shine a light of leadership that can show us the way.
My personal to-do list feels like one step forward and five steps back as I face my own red tape. It is very frustrating trying to get my backlog of admin moving, as every task seems to take forever to unravel.
This weekend, I tried the disruptive package app Pudo, and it took me an hour to figure it out. While changing habits and integrating new technology is painful, the outcome is worth it.
So while personal and on a country level there is a lot to do that needs a spreadsheet and not a top five list, ye olde wisdom of baby steps to just get things done is the way to go.
It is time to tackle the to-do list inch by inch, ticking off more items to grow the economy, empower the youth, and get South Africa buzzing at full volume again.
Philippa Larkin is the executive editor of Business Report.