This is how South Africa can actually achieve transformation

South Africa’s transformation agenda, Professor William Gumede argues, must be grounded in pro-growth policies, education, technical skills, and competence-based governance, rather than outdated ideology or populist slogans.

Without these, he warns, current efforts risk “breaking the country” instead of delivering meaningful change.

The ANC’s, and in extension the South African government’s, transformative agenda prioritises race-based redress to address historical inequalities.

Key initiatives include a R100 billion Transformation Fund to support black-owned businesses, skills development, and ownership stakes, alongside Broad-Based Black Economic Empowerment (B-BBEE), expropriation without compensation, and Employment Equity Amendments.

Yet, the ANC noted over the weekend that South Africa’s economy is in crisis, setting up a “war room” to counter it.

Gumede said that this is nothing new. Corruption, mismanagement of state entities, and ideology-driven policies have undermined growth, while low economic literacy and insufficient technical skills further limit progress.

“We have been in economic emergency for quite a while…unemployment is at 32–36%, youth unemployment at 60%,” he notes.

Policies are often guided by ANC ideological priorities or past solidarity commitments, rather than what is economically effective, said Gumede.

He warns that without addressing competence, pro-growth policies, education, and anti-corruption measures, South Africa will struggle to reduce poverty, create jobs, and stabilise the economy.

How to achieve real transformation

“First thing is we have to look at what policies are pro-growth. If we don’t have growth, we will never be able to transform anything,” Gumede said.

He stresses that transformation without economic growth is ineffective, saying, “we currently do transform things. We’ve transformed things to be broken if we continue on the current trajectory.”

Gumede identifies education as the cornerstone of transformation.

“Education must be the number one transformation strategy. We have to focus on getting quality education.”

He points to shocking statistics that nearly 500 government schools are without mathematics teachers and 2,000 schools lack economics instruction, emphasising the urgent need to equip students with the skills needed for the modern economy.

Technical and vocational training is equally critical. Gumede notes that the post-1994 closure of technical high schools and colleges has produced fewer engineers, electricians, and skilled technicians than the country requires.

Without these skills, he warns, even new investment and infrastructure initiatives will struggle to deliver sustainable economic growth.

Another pillar of transformation, Gumede argues, is competence and integrity in governance.

“Any economic reform must bring in competence… in appointing people, but also merit-based appointments in appointing contractors to the state. That is absolutely important.”

Competence-driven leadership ensures that public resources are effectively managed and that corruption, a key impediment to transformation, is minimised.

Addressing corruption directly, Gumede says it undermines growth, employment creation, and poverty reduction.

“If a country only tackles corruption… that will give us at least 2–3% growth rate. That is how important it is to tackle corruption.”

Economic literacy, he notes, is another critical factor. Without understanding basic economics, many citizens will vote for policies that fail to deliver results.

“People may vote for political parties that campaign on economic policies that have failed to last 100 years in most countries… because of our high levels of economic illiteracy in the country,” he said.

In summary, Gumede presents a three-pronged approach to transformation:

1. Pro-growth policies that prioritise economic expansion.
2. Education and technical skills development to empower the workforce.
3. Competence and integrity in governance to ensure effective implementation and reduce corruption.

Only by aligning transformation with these practical pillars, he argues, can South Africa achieve meaningful, sustainable progress that lifts citizens out of poverty, creates employment, and strengthens the economy.

Watch Professor William Gumede’s full interview with Newsday