Sacci CEO remains positive on SA’s recovery despite vaccine setback

The South African Chamber of Commerce and Industry measured business confidence at 94.5 points in January, showing a slight increase of 0.2 index points month on month. The positive contributions to the recovery were mainly attributable to real economic activity and the financial environment. In a recent interview with CNBC Africa, Alan Mukoki, CEO of the South African Chamber of Commerce and Industry, shared his insights on the current economic landscape in South Africa and the challenges that lie ahead. Mukoki highlighted the importance of the economic reconstruction and recovery plan in driving various sectors of the economy. He emphasized the chamber's commitment to forming committees and groups within key sectors such as the auto industry, energy, and retail. By bringing together industry players, experts, consultants, and capital, the chamber aims to create an ecosystem that will propel economic growth and development. However, Mukoki acknowledged the setback caused by the uncertainty surrounding the effectiveness of the AstraZeneca vaccine against the new variant of the virus. He expressed hope that the Minister of Health is working diligently to address the situation and stressed the significance of vaccination in reinvigorating the economy. Reflecting on the challenges faced in 2020, Mukoki referred to the unprecedented events that unfolded, likening them to 'the four husbands of VUCA,' which stands for volatility, uncertainty, complexity, and ambiguity. He noted that the past year presented extraordinary circumstances that tested the resilience of the South African economy. Despite the challenges, Mukoki remained optimistic about the potential for recovery. He pointed out that the government's efforts to allow companies to generate their own electricity and the proposed shift towards a meritocracy in the public service are positive developments that could contribute to economic growth. The concept of meritocracy, according to Mukoki, is crucial for South Africa's progress. By prioritizing merit-based appointments and fostering a culture of excellence, the country can emulate the success stories of other nations that have transitioned from developing to developed economies. When discussing the uncertainties surrounding the ongoing pandemic, Mukoki emphasized the need for continued research, scientific advancements, and vigilance. He acknowledged the evolving nature of the virus and the challenges it poses, emphasizing the importance of remaining adaptable and resilient in the face of uncertainty. As the conversation turned to the Africa Continental Free Trade Area (AfCFTA), Mukoki underscored the significance of the agreement in bolstering confidence and promoting economic integration across the continent. While acknowledging the complexities and challenges that lie ahead, he expressed optimism about the potential benefits of the trade agreement. In conclusion, Mukoki emphasized the need for perseverance, innovation, and collaboration in navigating the current economic landscape. While uncertainties persist, he maintained that a proactive approach to research, policy development, and economic reforms will be vital in shaping South Africa's recovery and future prosperity.