Five actionable plans would be key to help kick-start South Africa’s gross domestic product (GDP) growth – currently standing at below 1% – and address the country’s triple threat of unemployment, inequality and poverty, delegates heard at business consultancy IQ Business’s smartgrowth.co.za event in Sandton last month.

IQ Business CEO Adam Craker said the first key area was the deployment of the National Development Plan (NDP), aimed at addressing a number of challenges, including the triple threat, by 2030. He noted that, while the NDP was a good policy document, the challenge since its launch in 2012 had been the execution of its objectives.

South Africa should adopt radical management principles to fast-track the implementation of the NDP, as it would clarify government objectives, recognise the needs of citizens, facilitate effective and constant stakeholder communication, as well as promote total transparency, he suggested.

Craker highlighted that it was important for South African businesses to find ways in which it could assist the roll-out of the NDP, but also be allowed to speak out against its impediments.

The second key element he identified was enterprise development, with particular focus on the development of entrepreneurs and small, medium-sized and microenterprises.

Cracker pointed out that the economic participation of South Africans between the ages of 15 and 24 had declined significantly over the years and that enterprise development could help provide the job opportunities needed to alleviate the problem.

However, enterprise development initiatives had mixed results and failing beneficiaries of enterprise development were often financially and operationally dependent on their benefactors, he said.

Craker suggested that listed companies should integrate their enterprise development initiative with annual reports and outline how initiatives are slanted towards sustainable long-term business development and should also invest in education that promotes the development of young entrepreneurs.

He listed the digital transformation of South African business, particularly since the country had the potential to “leapfrog” other developing nations by leveraging its technological competences, as the third key area.

However, he noted that broadband data costs were a major drawback, as it contributed to increasing the digital divide between rich and poor.

Craker cited a study by the World Economic Forum, which highlighted the ability of effectively leveraging information and communication technology (ICT) to improve productivity by up to 50%, as well as the link between ICT investment and improved GDP growth.

To accelerate South Africa’s digital transformation, government and the Independent Communications Authority of South Africa (Icasa) need to come to a decisive agreement by next year on what broadband spectrum to roll out across the country, Craker stated. This would also assist in increasing broadband penetration from 49% in 2015 to 79% in 2018, he added.

Craker was referring to the July invitation by Icasa for applicants to apply for 700 MHz, 800 MHz and 2.6 GHz spectrum licences, which will boost the roll-out of faster long-term evolution, or LTE, broadband. Postal Services Minister Siyabonga Cwele subsequently asked the North Gauteng High Court to interdict and set aside Icasa’s planned spectrum auction.

Further, he suggested that every metropolitan council in South Africa offer free uncapped WiFi by 2018; this would help improve the chances of employment for South African youth because it would improve their digital literacy.

The fourth key concern regarding the country’s economic growth was the number of State-owned enterprises (SOEs) that had been performing poorly over the years. Craker highlighted that SOEs had been identified by ratings agencies, such as Moody’s, as posing the most significant risk for South Africa possibly being downgraded.

He suggested that several SOEs be commercialised, specifically South African Airways, the South African Post Office, the Passenger Rail Agency of South Africa and Transnet.

While some SOEs might be deemed too strategic to completely commercialise, Craker pointed out that partial privatisation could provide the means to increase State revenue while also improving the efficiency of service delivery.

The final key focus area highlighted by Craker was education, the “most powerful weapon to address the challenges” South Africa faced.

He pointed out that the problem was quality of education, not funding, and that creative and innovative solutions were needed to address the challenge.

To improve education, as well as management and leadership at government schools, Craker urged JSE-listed companies to partner with their local primary and secondary institutions.

He also suggested that a larger portion of the education budget be dedicated to early childhood development and that a national plan be actioned to ensure complete literacy by Grade 3.

Craker noted that nonprofit education services provider the Tomorrow Trust had identified English literacy as the primary reason for poor mathematic and science marks. Contentiously, he advised that tuition be given only in English to help address the challenge.