Business Report: SA needs new growth approach as it lags its peers, says SBI


DURBAN – THE SMALL Business Institute (SBI) said South Africa needed to re-evaluate its approach to economic growth, as its research showed that middle-income countries were on a trajectory to outperform the country in gross domestic product growth (GDP) growth in the next two years.

South Africa is classified as an upper-middle-income country.

SBI chief executive John Dludlu said the country needed to embrace failure as a feature of growth, admit it and learn from it.

“We hope this work will encourage leaders to concede that it’s time to re-evaluate ideological-driven ideas and explore more practical and growth-orientated approaches,” he said.

The research demonstrated that South Africa had not achieved the minimum criteria for GDP growth above population growth for almost a decade, nor had it achieved any of the aims set by the National Development Plan (NDP).

The SBI commissioned the research, and researchers from the Small Business Project (SBP) conducted the studies with funding support from Exxaro.

The research identified three important challenges and presented three general recommendations for the government’s consideration.

It said the country should strive for transparent, evidence-based policy-making, as solutions tended to be illogical when the problem was not clearly understood.