Business unity is key to address South Africa’s lack of economic growth and social development challenges
“Development does not need to be competitive.” This was one mantra adopted by attendees at the 2024 Nedbank Top Empowerment Conference (TopCo). The event was held at the Maslow Hotel in Sandton, Johannesburg on 17 and 18 July 2024. The annual conference serves as a crucial platform for discussion, networking and engagement among transformation practitioners, business leaders, investors and policy-makers in South Africa and across the continent. The theme for 2024 was “Africa Rising: Navigating the Path of Inclusive Transformation”.
I attended as an aspiring SMME owner in the creative sector, and was hoping that the conference would serve as a catalyst for the growth of my business.
In a split second, I was in the midst of business geniuses and innovators, and I realised that I am doing very little to promote my business, as I do not make enough effort to meet like-minded acquaintances who have my best interests at heart.
These were strangers with hearts of gold. I met an enthusiastic business investor who is keen to fund my tech start-up venture immediately, after hearing my well-rehearsed 90 second pitch. A conversation I had with another potential business partner underscored the view that “being well-prepared is half the victory”.
I had another realisation — that Covid-19 enabled SMMEs to invest in online presence methods — but as the pandemic subsided, the real work of the traditional ways of engaging with clients and stakeholders got lost in translation, especially direct marketing and relationship building. Events like this remind us to take our business practice seriously in order for economic growth to take place.
The conference was hosted by the effervescent Le-Anne Manas, who broke the ice like the rock star she is and kept us light-hearted, encouraging us not to be too stern, even in our well-tailored suits.
Nedbank’s Chief Operating Officer Mfundo Nkuhlu provided a thought-provoking keynote address: “We have an economy that has battled to grow above 2%. In some quarters we are referred to as the 1% economy. It has been significantly below the population growth rate. This means that on a per capita income level, we have been getting poorer. That’s at the heart of the challenges we face.”
He added that empowerment has to address the lack of economic growth and social development challenges. “Our standpoint as a bank is that the economy will grow by 0.9% [in 2024], even considering the political climate of the Government of National Unity (GNU). Inflation sits at 5%, outside of the 3-4% midpoint target that the Reserve Bank seeks to achieve,” said Nkuhlu.
He said that interest rates are likely to be high for longer, which will affect households already battling to make ends meet. The major call to action that Nkuhlu hoped businesses will answer is the collaboration between government and the private sector to address structural injustices in society proactively.
An exciting panel discussion about SMME supply chain opportunities, moderated by Sanlam’s Chief Transformation Officer Ray-Ann Sedres, highlighted that over 80% of South African start-ups fail (stats provided by CEO of SANParks, Hapiloe Sello). As a result, the government and the private sector are creating programmes such as Youth4Tourism, with Sanlam as the founding partner, where young people are trained on Gig Economy skills and also further supported in finding access to markets to utilise their skills.
To date, over 1 100 jobs have been created and the next focus will be on helping at least 50 of these youths to establish their own small businesses, as well as access corporate eventing opportunities through the supply chain. Another opportunity to accelerate supply chain access is the partnership between Sanlam and SANParks, where funding opportunities to Sanparks’ micro SMEs are provided to fulfil purchasing orders for SANparks in the form of zero-based loans. This initiative aims to eventually support SANparks to assist over 23 000 businesses around various local attractions.
Sedres encouraged corporate South Africa to crowd in its efforts with initiatives impacting the access to market opportunities for SMMEs, and to look beyond their traditional supply chain opportunities.
Linda Makalima, Nedbank’s Independent Non-Executive Director, boldly stated in a discussion about transformation that transcends legislation: “Let us be transformational leaders — you do not need an appointment letter to be one!” The audience audibly agreed, because this mandate is extremely practical, from households to the boardroom.
Makalima said that to truly be transformational, local SMMEs, particularly those in townships, must embed transformative practices into their core business strategies. This involves more than just economic activities; it’s about cultivating ecosystems that support community growth. For example, township enterprises can engage in skills development initiatives to empower the local youth. By partnering with local educational institutions or offering apprenticeships and training, these businesses not only enhance their workforce but also uplift the community economically and socially.
The principle of “lift as you grow” should guide corporate South Africa, to ensure that growth and equity go hand in hand. Corporations can implement this by investing in supplier diversity to include more black-owned, women-owned and township-based businesses in their supply chains. Additionally, corporate mentorship programmes can be established where large firms support smaller businesses through knowledge sharing, financial assistance and access to networks.
“This not only helps the smaller businesses to thrive, but also ensures that the larger corporate entities contribute substantially to the transformation of the South African business landscape. Both strategies emphasise the importance of integrating ethical practices into business operations, ensuring that the growth of enterprises directly contributes to societal enhancement,” said Makalima.
Nedbank Group Marketing and Corporate Affairs Executive, Khensani Nobanda, provided an inspiring masterclass on creating brand strategies that support a national agenda. “Brand South Africa comes together on Twitter: every person in the world knows that nobody comes for a South African.”
That premise set the tone of marketing under the local creative currency and leveraging this capital for one’s business. Nobanda also touched on the importance of brands driving important conversations with their audiences — even if these are uncomfortable at times. For example, under her leadership, Nedbank’s brand campaigns have showcased a commitment to engaging with issues facing broader South African society, including financial abuse and encouraging people to save for their retirement.
As an entrepreneur who is still trying to grow my own business, I asked Nobanda for the advice she would give to SMMEs when marketing their services and/or products. She said that it is essential to have an innovative mindset, but most importantly you must identify and solve a consumer’s need. Answer the crucial question, “who is your target market?” She gives me homework indirectly: to break down my clientele to the “T”.
Nobanda insisted that aspiring executive marketers should have genuine curiosity about people, have a passion for marketing and learning, and create a strategic value for products and services. For content creators, “40% of the marketing budget is digital”.
Benefits of attending TOPCO
There are several benefits of attending the conference, such as meeting potential collaborators and investors, receiving free business consultation from experts, engaging with potential clientele for your business, rubbing shoulders with the top brass of corporate South Africa, gaining inspiration for product development, discovering new business trends, as well as advertiser-funded programme opportunities and innovations. Attendees can also learn from gaining a bird’s eye view about building a strong brand. The TOPCO app is available on Google PlayStore, for a digital experience of the event.
Closing remarks
Several pressing issues were outlined at this year’s TOPCO. Business unity is key for the improvement of South Africa, as former Deputy President Phumzile Mlambo-Ngcuka has forecasted that civil unrest is inevitable if various sectors fail to collaborate towards a collective vision; the GNU will serve as a case study.
Secondly, to practise transformation is imperative, irrespective of one’s particular entrepreneurial journey. Last but not least, the empowerment of vulnerable groups in society such as women, people living with disabilities and LGBTQIA+ individuals must be represented in an organisation’s strategic leadership roles, to enable fair participation in the world of work.
Jason Quinn, Nedbank’s Chief Executive Officer, stated in closing: “Inclusive transformation needs strong leadership, and the empowerment of black women is important.”
