Business chambers can help fix struggling economy – IRR report

Organised business should flex its muscles and play a more active role in pushing for much-needed economic policy reform, according to the latest research report from the Institute of Race Relations. 

The IRR’s 2025 ‘Blueprint for Growth’ provides a frank appraisal of the current state of the economy, which is suffering from chronically low levels of investment, the report says.  In discussing the numerous obstacles to growth, the report highlights the vital role of the government-business relationship in shaping future policy and economic performance.   

A more outspoken business sector could help address the many urgent challenges, particularly at a local government level where service delivery is sadly lacking throughout much of the country, the report says.  

“One area where business might fruitfully invest some effort is in resuscitating the local-level business chamber movement.”

“Since much of South Africa’s failures are most acutely visible in its municipalities, a strong voice for business is critical. Given the dysfunctionality of much of the municipal sphere, though, business would need to go beyond attempting to interact with the municipal leadership.

Rather, business would need to explore creative options for partnerships with interlocutors in civil society and at other levels of government,” the report says. 

The historical ‘adversarial’ tone of government-business relations needed a reset to reflect the shared goal of economic growth, the IRR says.  

Such a move was a “necessary part of the modernisation process that is essential to South Africa’s progress.” 

“Business is hardly without influence, and nor would the positions it might take with regard to policy positions necessarily be unpopular. This was suggested by the evident blowback that followed President Ramaphosa’s signing of the NHI Bill into law,” the report says. 

Much of the ‘Blueprint for Growth’ document looks at the reasons for South Africa’s current low-growth path and failure to attract investment.  

“As long as this persists, it might well see not only its chance at rapid gains eroded, but so too its status as a middle-income country, as its peers become ever more prosperous and today’s less affluent societies position themselves to step into opportunities that these economic shifts create,” the report says.