SOUTH AFRICA’S ECONOMY COULD BE R4.5 TRILLION LARGER
- BEE NEWS
- Nov 19
- 3 min read
Staff Writer | 18 November 2025
Investec chief executive Fani Titi says it is time for South Africa to prioritise contribution over compliance and productivity over patronage.
He added that the country’s moral and social commitment to empowerment must remain as steadfast as ever.
However, the mechanism should change to reward those who build, teach, employ and create, and to measure what matters.
Titi argued that if empowerment focuses on pragmatism instead of ideology, it would transform empowerment from a brake on growth into a flywheel for it.
These suggestions formed part of a post that Titi published on LinkedIn about the current debate surrounding Broad-Based Black Economic Empowerment (B-BBEE).
There is a growing narrative that BEE is a failed social experiment, which places a tax on investment that South Africa cannot afford.
It also opened the door to rent-seeking and corruption, as well as the appointment of unqualified cadres to key public positions.
However, he argued that these problems are not a reason enough to abandon the principle of economic inclusion. “This would be a profound mistake,” he said.
“We need a more innovative approach, premised on effectiveness, integrity, accountability and a foundational commitment to rapid economic growth.”
The guiding principle of such a policy framework should be to reach the largest number of economically excluded citizens in the shortest possible time.
Titi said a new policy framework should focus on four key areas:
Value for money in public procurement: Taxpayers’ money should be used to maximise the reach and quality of essential services.
An end to cronyism: The appointment of well-connected but unqualified people to public positions has done untold damage to state capacity.
Employee participation: The broad involvement of employees in company ownership is preferable to highly concentrated equity deals.
Equity equivalence: Public benefit programmes can deliver a broad and durable impact which benefits the country.
“Transformation efforts ought ultimately to be directed at poverty and capability rather than focusing solely on race and gender,” he said.
South Africa’s economy could be much bigger
As part of his post on LinkedIn, Titi stated that there is ample evidence that economic inclusion and growth are not mutually exclusive.
“One need only think back to the years between 2002 and 2008, following the initial enactment of BEE in our law,” he said.
This era witnessed a significant increase in the representation of black and female individuals in management and control roles.
There was also broader access to skills development and expanded opportunities for black- and female-owned businesses.
It was a period in which economic growth averaged 4% per year, business confidence reached historical highs, and unemployment fell from 28% to 21%.
“Had this trajectory continued, today’s South Africa would look markedly different,” Titi highlighted.
According to Investec’s research, the South African economy would now be worth approximately R12 trillion, rather than R7.5 trillion.
This would have resulted in higher levels of employment, a broader tax base, and more funds to allocate to education, healthcare, policing, and social security.
“Consider the opportunities that such conditions would present for young professionals, or the prospects of startup enterprises,” he said.
“Most of those professionals and businesses would be black, and a good proportion female, simply based on South Africa’s demographics.”
Titi said this is not merely an indulgent counterfactual. It is a picture of what is possible if South Africa can return to a path of inclusive economic growth.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.