South Africa's top government and business leaders convened at a Pre-World Economic Forum Annual Meeting breakfast in Sandton earlier today. CNBC Africa spoke to Adrian Gore, Group CEO, Discovery about efforts to accelerate public-private partnership in the South African economy.
South Africa's top government and business leaders convened at a Pre-World Economic Forum Annual Meeting breakfast in Sandton earlier today. I was there and I did speak with Adrian Gore, who is the Group CEO at Discovery, about efforts to accelerate public-private partnerships here in the country. This is what he had to say. I think the partnership is a unique construct. I don't think it's an informal passing issue. In fact, we feel collectively that it's a model that emerging markets should use. It's always an asymmetry between skills in the private and public sector. It's not a partnership because government's weak or strong or whatever. I think just structurally it's a powerful partnership. The partnership itself has not only evolved in terms of governance, but it's kind of brought in all CEOs into it. And it's delivering. You know, the load-shedding alleviation is brilliant work by Eskim, etc., but the partnership, as you heard, has been fundamental in that. We're focusing on transport and logistics. We're focusing on crime and corruption. And there may be more areas we will go to over time. So I'm hoping that it's a structure that's well-governed, quite unique, that sustains itself over time and helps grow the economy. It's amazing what was achieved in just a year. You know what I mean? I think we set this thing up. We had no idea it would be as powerful as it's been. And I think it's a fundamental issue. But the South African psyche, the kind of good faith between people, the ultimate trust deficits, I don't see that. There's amazing goodwill. You know what I mean? Get people across the table. You heard it earlier. We're all kind of one. It's an amazing country. You know, can it work elsewhere? I think it can. But I think in ESA it works really well. So you have been optimistic about South Africa's story, even in some of the gloomiest times of our economic history, this last decade, as it were. I remember bumping into you on a platform such as this, and you always said your approach was to look at the glass half full. If we gauge the level of the liquid in that glass right now, based on everything that has happened, where would you put the level of that liquid? And I guess it essentially does speak to investment opportunity that does lie in this economy. Well, you see, I think it's you're asking a complicated question, but I'm not optimistic for the sake that I'm believing agency. You know what I mean? We grasp it and make it work. Do I have an unequivocal belief in the potential of the country? You know, the raw potential, the quality of the people, the good faith, you know, that we can leverage. So I've had that unequivocal view. I don't think it happens on its own. So I think we worked hard to get there. A lot of people, I think the GNU, all of this stuff has come together. So it's not something you just watch and will it happen. I think we're more than half full. I think we're full of potential at the moment. But I think these are tricky times. We mustn't waste them. We need to, you know, so Davos is one touch point. I was saying earlier, it's not transactional. You do this, you get that. There's going to be many opportunities. GNU, the partnership, Davos, the G20, B20, these are things we mustn't waste. But I do think that the ability for government and business to work together, if we can sustain that, you know, and keep that going and keep just focusing on what needs to be done, you turn a flywheel. You know, once it starts to turn, you get growth, jobs, narrative changes. So it's not a cross-sectional view of are we doing well or not. I think we're in a good space. We've got to really work hard. And it's about leadership. It's about leadership, you know, and getting people to believe, you know, and work with us. No doubt, I mean, you mentioned GNU, and no doubt you will also perhaps get asked a question or two about South Africa's government of national unity on the international stage. We have seen coalition governments in the world over falling apart and not working. And I'm sure there are skeptics out there who are wondering to what degree South Africa's GNU can hold. We're really seeing a bit of shaky ground in certain areas in education, in the health sector in which you operate. So what will your response then be about the how trusted this GNU can be to deliver on its common goal for reforming and growing this economy? Listen, you know, some of you will know this data. I mean, some countries in Europe took a year or two to form a GNU, the complexity. South Africa did it in 10 days, I forget the numbers. But it talks to our ability to collaborate on one end. On the other, I wouldn't pitch all of our future on the GNU holding. I think that's also foolish. You know what I mean? We'll go through bumps in the road. I'm hoping it does hold. There seems to be very good, good working relationships, et cetera. But I don't think we should, how can I say, bet our entire future that everything works as it is. There are bumps in the road, things happen, you know. But I'm at the moment confident it does hold. Again, I want to come back to partnership. I think whatever happens, if we can keep all those structures working, we can work through our problems and keep good faith. And I think the election itself, ignoring the outcome for parties was a vote for the middle. South Africans tend to be moderate. They tend to be in the middle. We're not seeing like in other countries, the polarization. We're seeing the opposite. So we've got a chance now to just keep the middle, in my mind, that's critical, to keep the middle holding and to deliver for the middle. And that's the only way to actually bring in jobs and alleviate poverty. I think it's often the one cognitive error where if you speak about things are going well, people say, oh, but there's unemployment. No, that's the issue. We've got to get that to work so we can alleviate unemployment and the poverty. That's the key issue. So I wouldn't kind of rely on one structure. I'd rely on just kind of a determination of leadership to make the country work, get economic growth. Just final question then on partnerships, the emphasis of the World Economic Forum for some time. This time, the theme is around partnerships and collaboration in the intelligent age. But it's happening in a time whereby there are risks of deepening geo-fragmentation, as it were, and deepening divides in the global system, particularly between the global north and the global south. Risks emanating from the second term, as you would know, of the US President Donald Trump. How are you feeling about the outlook of the global economy and South Africa's position in that ecosystem in light of concerns about deepening geo-fragmentation? I don't know. I think it's very, I think there's both potential and danger, in my view. I think there's a lot of tail risk of real issues happening, conflict, geopolitical conflict. I think, ironically, the world seemed quite settled a year or two ago. We looked in, you know, polarized and gloomy. It's the other way around now. We look like, you know, we're together, we're collaborating. The world is polarized and it's getting more polarized. So, I mean, I think that we can't, you can't predict any outcome. I think our best case is to get growth, stability, make our people, as I say, in the middle, believing in the future of the country, and we'll have to ride out the storms. But I think we have to be out there in a positive way, in a confident way, about what we stand for, what we do, you know, etc. And I think that we have to, we'll have to navigate it. But there are tremendous risks of both geopolitical conflict, economic difficulty, trade, you know, kind of breaking apart, tariffs, I mean, all this stuff. And we are a small boat, as many countries are, in a very choppy sea. But we're better than we've been ever, you know, and I think we need to kind of use that.
Theme: Accelerating public-private partnerships in South Africa's economy
South Africa's top government and business leaders gathered at a Pre-World Economic Forum Annual Meeting breakfast in Sandton where the focus was on accelerating public-private partnerships in the country's economy. CNBC Africa spoke with Adrian Gore, Group CEO of Discovery, who expressed optimism about the unique construct of public-private partnerships as a model that emerging markets should adopt. He emphasized the power of collaboration between the private and public sectors, highlighting areas such as transport, logistics, crime, and corruption as key focuses for partnership efforts. Gore highlighted the significant progress made within just a year of establishing these partnerships, particularly noting the impactful role they played in addressing challenges like load-shedding. He commended the goodwill and trust that underpins these collaborations, emphasizing the need for sustained governance and unity to drive economic growth. Addressing concerns about South Africa's economic outlook, Gore remained steadfast in his belief in the country's potential, citing the quality of its people and the importance of strong leadership in leveraging opportunities for growth. While acknowledging the challenges and uncertainties in the global economy, including geopolitical tensions and trade risks, Gore emphasized the need for South Africa to maintain a positive and confident stance in navigating the complexities of the international landscape. Despite uncertainties surrounding South Africa's government of national unity (GNU), Gore expressed confidence in the collaborative spirit that enabled its formation in a remarkably short period. He cautioned against placing excessive reliance on any single structure, urging a collective commitment to working through challenges and delivering results for the economy. As the World Economic Forum emphasizes the theme of partnerships and collaboration in the intelligent age, Gore underscored the importance of maintaining a middle ground in South Africa's political landscape, steering clear of polarization to drive economic progress and job creation. He acknowledged the risks of deepening global divides and emphasized the need for resilience and determination in the face of potential conflicts and disruptions. In conclusion, Gore's insights shed light on the importance of sustained public-private partnerships, strong leadership, and a cohesive national vision in propelling South Africa towards economic growth and stability amidst global uncertainties. The country's ability to navigate challenges and leverage its inherent strengths will be pivotal in charting a course towards a brighter economic future.
"I think the partnership is a unique construct. I don't think it's an informal passing issue. In fact, we feel collectively that it's a model that emerging markets should use."
['South Africa', 'Economy', 'Public-Private Partnerships', 'World Economic Forum', 'Collaboration', 'Global Economic Outlook']