This month, Proudly SA convenes its annual summit in Johannesburg. While most South Africans primarily associate the organisation with its consumer-facing initiatives, the summit presents a valuable opportunity to reflect on the role of business and policymakers in advancing a Proudly SA ethos and agenda. This holds true not only for local enterprises but also for international corporations operating within the local context.
The timing of this event is particularly significant, following closely on the heels of the Budget Speech delivered by Minister of Finance Enoch Godongwana on 12 March 2025. The Minister’s announcement of a 0.5% VAT increase underscores the urgent need to stimulate economic growth in order to increase state revenue to fund essential social welfare programmes and address the challenges of unemployment, inequality and poverty.
It’s common for multinational corporations to view developing nations as a source of cost-effective labour. This perspective has undeniably driven the increased trend of offshoring manufacturing and other sectors to the developing world, accelerating globalisation. In many respects, this has yielded positive outcomes. Corporations do gain, generating profits for their home-country investors. However, they also contribute to the economies in which they operate through capital investment, skills transfer to local workforces, and the expansion of the formal economy.
Despite these widely acknowledged benefits, it’s crucial to recognise the potential for an imbalanced relationship, where corporations ultimately extract more value than they contribute. This is precisely why platforms like Proudly SA are so vital, particularly in their engagement with multinational entities. By fostering deeper connections, we can align strategic priorities, ensuring the creation of an environment conducive to the shared growth and development of both our nation and the organisations operating within it. This requires a shared understanding of key priorities, tensions and opportunities.
In South Africa, the first and most urgent priority is creating employment. This summit must therefore explore how government, civil society and business can collaborate to create an environment in which business can expand. This requires a growing market, greater market access for locally manufactured export products, and lowering the cost of doing business to foster a competitive edge.
At the same time, businesses have a responsibility to ensure that job creation extends beyond basic, short-term positions. This requires strategic, long-term investments in permanent employment, the development of innovative products, and a commitment to upskilling our workforce. Such investments enable the production of value-added goods that command higher market value and, consequently, support better wages.
The driving force for businesses is, of course, profitability. However, there are also compelling reasons for government to actively nurture a supportive business environment. Beyond generating revenue for the national treasury, sustained investments in value-added manufacturing have a transformative impact on local communities. Take, for example, Hisense SA’s R350 million state-of-the-art facility in Atlantis. This investment has not only benefited employees and their families but has fundamentally revitalised the community, transforming it from a peripheral area into a hub of opportunity and economic activity. This is because large-scale facilities rely on local suppliers, creating a ripple effect of growth that extends across the nation.
Moreover, locating advanced facilities in communities like Atlantis fosters inclusivity. It integrates previously marginalised groups into the formal economy, providing them with a foothold in critical global industries. These communities also become the natural beneficiaries of corporate social responsibility initiatives, strengthening the bonds between corporations and residents to create the integrated, collaborative social and economic landscape we aspire to.
Finally, in today’s complex global landscape, it is crucial to remember the value of mutually beneficial economic partnerships as an anchor for positive international relations. The United States, for example, understood this as evidenced by the generosity of the AGOA trade programme. It is a pity that the spectre of its non-renewal now looms as a result of the current diplomatic environment. This means that, with more than 200 countries in the world, South Africa must accelerate efforts to diversify and expand its trade relations, leveraging cross-border trade, investment and skills exchange as powerful tools for economic revitalisation.
To that end, South Africa must continue to expand market access through diplomatic engagement which will, in turn, deepen diplomatic ties. Hisense serves as an example of this relationship-building power of trade. The establishment of the local subsidiary served as a portent of positive relations between South Africa and China, with ties subsequently enhanced by China’s support for South Africa’s invitation to join BRICS. This has, in turn, opened up the Chinese market to South African products, particularly in the labour-intensive agricultural sector.
These are but a few illustrations of the advantages of international economic collaboration. Whereas foreign investment is viewed with scepticism in some quarters, it can, in fact, be a powerful boost to the Proudly SA agenda. In this context, the Proudly SA summit, by bringing together business and policymakers, holds the potential to accelerate economic growth through enhanced collaboration. This should be the hope of all South Africans – to lean into relationships with a broader range of nations, even as global corporations lean into South Africa to benefit from growth in this dynamic economy.
By Luna Nortjie, Deputy General Manager of Hisense SA
