Latest news with #BanKi-moon
IOL News
06-07-2025
- Business
- IOL News
The anatomy of decline: Unemployment and South Africa's structural crisis
Ban Ki-moon, former UN Secretary-General, reminds us that 'addressing unemployment is not just an economic imperative, it is a moral and social one that defines the future of peace and progress Image: AFP In 1994, South Africa emerged from apartheid with global goodwill, democratic legitimacy and the promise of shared prosperity. Yet three decades later, that promise remains unfulfilled. With an overall unemployment rate of 31.9% and youth unemployment at 59.6% (Q4 2024, Stats SA), the country faces a structural crisis that is eroding its economic base and social cohesion. This is not an isolated issue but a national reckoning that follows a pattern common to both collapsing companies and declining states. Jim Collins, in How the Mighty Fall, outlines five stages of institutional decline: hubris, undisciplined growth, denial of risk, superficial solutions and eventual stagnation. These stages offer a sobering framework for understanding South Africa's current position. 'Denial is the most dangerous stage of decline,' Collins warns, 'because it blinds leaders to reality.' Stage 1: Hubris Born of Triumph Between 2000 and 2008, South Africa enjoyed average GDP growth of 3.5%, buoyed by favourable commodity cycles and post-apartheid optimism. The country asserted its geopolitical presence, joined BRICS and positioned itself as a regional hub. But early success bred complacency. Rather than address long-standing structural inequalities or invest in productive capacity, economic momentum gave way to inertia. The Gini coefficient remained high at 0.67 while labour market rigidities discouraged job creation. State-owned enterprises, particularly Eskom, were allowed to expand without accountability. By 2024, public bailouts for Eskom had surpassed R500 billion. Argentina's early 20th-century trajectory offers a striking parallel: a commodity-rich economy that ascended rapidly only to decline due to internal mismanagement and premature confidence in global status. South Africa's early economic positioning masked unresolved domestic vulnerabilities. While attention turned outward to summits and regional diplomacy, the foundations beneath were quietly eroding. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Stage 2: The Undisciplined Pursuit of More South Africa's expansion of redistributive programmes, especially through social grants and state employment schemes, was not matched by corresponding economic productivity. The social grant system, projected to cost R259.3 billion by 2026, has been essential for poverty relief but increasingly burdens fiscal sustainability. Meanwhile, core infrastructure suffered. Transnet's freight efficiency declined sharply and energy supply instability continued to constrain investment. The World Bank reports average GDP growth of just 0.7% between 2014 and 2024. Yet state-led expansion persisted, often detached from output and institutional readiness. This pursuit of scale without returns mirrors firms that chase growth for its own sake. Public employment expansion - while well intentioned - has in some cases reinforced dependency. The logic that more 'boots on the ground' equals delivery has led to overstaffing, rising wage costs and limited institutional agility. Government visibility has been confused with public value. Climate risks have compounded the challenge. Extended droughts have reduced employment in agriculture and mining, weakening resilience in rural provinces. Without adaptation strategies, the employment impacts of environmental shocks will only intensify. Stage 3: Denial of Risk and Erosion of Trust Despite mounting evidence of institutional and economic strain, reforms have lagged. The Zondo Commission exposed over R500 billion in procurement-related losses, yet implementation remains slow. Labour market mismatches have worsened, with 42% of jobless individuals now classified as discouraged workers - those who have ceased to seek employment entirely. Total Factor Productivity has declined for over 15 years according to the International Monetary Fund, yet public discourse often defaults to rebranding or extending existing models. Persistent mismatches between the education system and labour market needs further entrench youth unemployment. Over a million students are enrolled in post-secondary institutions annually, yet far fewer graduate with skills aligned to economic opportunity. Technical and vocational education remains underfunded despite strong global evidence of its employment in government has declined. According to the Edelman Trust Barometer, only 22% of South Africans express trust in government compared to 62% in business. Many young people are now cycling through training schemes with no connection to employment. For them, the crisis is not theoretical - it is lived daily through delayed adulthood and social alienation. Stage 4: Superficial Solutions and Fiscal Pressure Short-term relief measures have become the norm. The Social Relief of Distress Grant and other temporary interventions offer necessary support but are not substitutes for structural employment generation. Public debt now stands at over 74% of GDP, edging towards unsustainable territory. The 2024 Budget Review confirmsdebt service costs are rising faster than allocations to education and infrastructure. Some initiatives under Operation Vulindlela and the Just Energy Transition Investment Plan show intent but require stronger execution and sustained adds further pressure. McKinsey estimates that automation could displace one in four jobs in South Africa by 2030, especially among low-skilled workers. Without a reskilling strategy, digital transformation may reinforce unemployment rather than resolve it. The African Development Bank warns that the continent adds 10 million job seekers to the labour force annually but creates only 3 million jobs. Grants and temporary schemes cannot bridge this gap. They must be paired with pathways into the formal economy - particularly for youth, women and small private sector must also adapt. Hiring practices, investment in entry-level talent and support for smallenterprises are necessary components of a functioning labour market. Stage 5: Recovery or Regression? South Africa remains at a critical juncture. Continued economic stagnation if unaddressed could normalise exclusion and dampen democratic participation. But recovery is not out of reach. Post-crisis recoveries in South Korea and post-war Germany show what is possible when discipline, targeted investment and reform align. In South Africa, green shoots exist. TymeBank has expanded financial inclusion through low-cost digital banking. Harambee Youth Employment Accelerator has supported over a million workseekers using demand-driven matching. AfCFTA implementation offers a strategic lever. If logistics and regulatory reform accompany it, the agreement could boost Africa's income by $450 billion (R7.9 trillion) by 2035. For South Africa, increased participation in regional manufacturing and agri-processing could transform employment patterns - particularly in secondary cities andrural districts. The informal economy, where most African employment resides, cannot be ignored. It requires accessible microfinance, simplified registration and recognition as a legitimate growth engine. Development cannot occur if the majority of economic activity is treated as marginal. None of this is possible without confronting inefficiencies in how public funds are deployed. While social grants and public employment programmes are essential lifelines for vulnerable populations, they have not translated into economic inclusion. Expanding headcounts in state departments is sometimes used as a proxy forperformance, yet without addressing institutional inefficiencies, this risks reinforcing dependency. Employment must become the central metric of public accountability. Conclusion: The Stakes and the Path Forward Failing to address unemployment is not a challenge that can be deferred without consequence. Beyond economic metrics lie the very fabric of social stability, public trust and democratic legitimacy. South Africa's experience offers a warning to all emerging and developing economies: the cost of delay is measured not only in GDP but in fractured communities and lost futures. Ban Ki-moon, former UN Secretary-General, reminds us that 'addressing unemployment is not just an economic imperative, it is a moral and social one that defines the future of peace and progress.' South Africa is not alone. Across emerging economies, unemployment, fiscal strain and youth disillusionment are converging into systemic risk. The lessons embedded in this crisis - about political will, economic realism and institutional reform - are applicable far beyond one nation's borders. The foundations for recovery exist but require clear-eyed leadership and a willingness to prioritise structural reform over symbolic intervention. South Africa's story will be determined not by its past but by how decisivelyit addresses the challenges of today. Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied
The Star
06-07-2025
- Business
- The Star
Africa Energy Forum presents a unique opportunity for African collaboration
In the rural village of Gwanda, Zimbabwe, a mother walks several kilometres each day to find firewood so she can cook for her children. She's never had access to reliable electricity, and her story is not unique. Across Africa, 600 million people still live without energy access – a fact that affects every aspect of their lives. The former United Nations Secretary-General, Ban Ki-moon, summarised Africa's biggest challenge when he said: 'Energy is the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive'. Without electricity, communities cannot run clinics, power schools, or create jobs – all of which are fundamental to dignity and development. That is why I attended the Africa Energy Forum in Cape Town recently, a milestone that marked the first time in the event's 27-year history that it was hosted in South Africa. This year's theme, 'Africa United', could not be more fitting. As the global investment meeting for Africa's power, energy, infrastructure and industrial sectors, it was attended by stakeholders who hold the key to accelerating energy access - African presidents, ministers, policymakers, continental executives, the World Bank, African Development Bank and DFIs. With South Africa chairing the G20 this year, the continent must use the momentum of the Africa Energy Forum (AEF) and the G20 Summit to amplify a cohesive African voice in global energy governance. As geopolitical instability rises, with trade wars and fractured alliances, it's more urgent than ever to ask: Can Africa present a united energy agenda? And can it do so on its terms? To seize this opportunity, Africa must first agree on a set of shared energy priorities. These must include scaling up renewable resources like solar, wind and hydro, where the continent has a competitive advantage, while also affirming the sovereign right to include coal, gas and nuclear in the energy mix where needed. This is not a contradiction, but a necessity. Industrialised countries built their economies using all available energy sources. Africa must be afforded the same space to grow. Some of the critical arguments at this year's event will be around balancing the need for energy access and economic development with plotting a sustainable energy future that includes an abundance of Africa's renewable energy resources. Favourable terms for the financing of African energy projects will also be another important topic of debate. Although there are hundreds of initiatives to ensure the achievement of universal energy access on the continent, more than half the continent still lacks access to modern energy, which is why African energy stakeholders believe that amid the drive for reducing carbon emissions, Africa should have a sovereign right to include coal, gas and nuclear as part of its energy mix in line with how developed nations built their economies. What will the US role be in Africa's energy future? The first Power Africa Summit was launched by former US President Barack Obama in June 2013 as a private sector-led initiative with the ambitious goal of doubling electricity access on the continent. Through USAID, 12 US government agencies implemented Power Africa activities by providing financing and technical assistance to support the power sector in 40 African countries. Though different US administrations advised countries on electricity access for years, Power Africa's approach was different in that it took a demand-driven, transactional approach by reviewing actual transactions between private-sector players like investors, entrepreneurs, and manufacturers, and with governments and then identified obstacles that were preventing transactions from moving forward. A large reason for the success of Power Africa in the past was the power of diplomacy to level the playing field for U.S. investments in the energy sector. US President Trump and his administration announced that Power Africa would be dismantled, after more than a decade of successful work on the continent. With almost all of Power Africa's programmes listed for termination, the diminishing role of the US in Africa's energy sector opens opportunities for new alliances and greater intra-African collaboration. Energy financing must be favourable The challenge for Africa is that it needs to industrialise and electrify its economy, but at the same time, it needs the finances to do so in a sustainable way. Africa has also been most severely affected by climate change, and so its infrastructure development needs to be climate-resilient. Most African nations don't need an energy transition, but energy accessibility. Many African countries are grappling with rising inflation, which has also impacted the amount of developmental finance available to African nations. But America may want to maintain its presence and footprint in Africa's energy sector, especially as China seeks to play a leading role in the continent's infrastructure development. Despite the challenging global environment, Africa needs its member states and voices to unite with a collective vision to fund Africa's energy revolution with international financing mechanisms that are just. After all, Africa is responsible for less than 3% of the world's carbon emissions and home to massive, unlocked energy potential, while also being home to 1.2 billion youth aged between 15 to 24 years that account for 16% of the global population (according to the UN). Greg Nott is Director Norton Rose Fulbright South Africa Inc
IOL News
06-07-2025
- Business
- IOL News
Africa Energy Forum presents a unique opportunity for African collaboration
In the rural village of Gwanda, Zimbabwe, a mother walks several kilometres each day to find firewood so she can cook for her children. She's never had access to reliable electricity, and her story is not unique. Across Africa, 600 million people still live without energy access – a fact that affects every aspect of their lives. The former United Nations Secretary-General, Ban Ki-moon, summarised Africa's biggest challenge when he said: 'Energy is the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive'. Without electricity, communities cannot run clinics, power schools, or create jobs – all of which are fundamental to dignity and development. That is why I attended the Africa Energy Forum in Cape Town recently, a milestone that marked the first time in the event's 27-year history that it was hosted in South Africa. This year's theme, 'Africa United', could not be more fitting. As the global investment meeting for Africa's power, energy, infrastructure and industrial sectors, it was attended by stakeholders who hold the key to accelerating energy access - African presidents, ministers, policymakers, continental executives, the World Bank, African Development Bank and DFIs. With South Africa chairing the G20 this year, the continent must use the momentum of the Africa Energy Forum (AEF) and the G20 Summit to amplify a cohesive African voice in global energy governance. As geopolitical instability rises, with trade wars and fractured alliances, it's more urgent than ever to ask: Can Africa present a united energy agenda? And can it do so on its terms? To seize this opportunity, Africa must first agree on a set of shared energy priorities. These must include scaling up renewable resources like solar, wind and hydro, where the continent has a competitive advantage, while also affirming the sovereign right to include coal, gas and nuclear in the energy mix where needed. This is not a contradiction, but a necessity. Industrialised countries built their economies using all available energy sources. Africa must be afforded the same space to grow. Some of the critical arguments at this year's event will be around balancing the need for energy access and economic development with plotting a sustainable energy future that includes an abundance of Africa's renewable energy resources. Favourable terms for the financing of African energy projects will also be another important topic of debate. Although there are hundreds of initiatives to ensure the achievement of universal energy access on the continent, more than half the continent still lacks access to modern energy, which is why African energy stakeholders believe that amid the drive for reducing carbon emissions, Africa should have a sovereign right to include coal, gas and nuclear as part of its energy mix in line with how developed nations built their economies. What will the US role be in Africa's energy future? The first Power Africa Summit was launched by former US President Barack Obama in June 2013 as a private sector-led initiative with the ambitious goal of doubling electricity access on the continent. Through USAID, 12 US government agencies implemented Power Africa activities by providing financing and technical assistance to support the power sector in 40 African countries. Though different US administrations advised countries on electricity access for years, Power Africa's approach was different in that it took a demand-driven, transactional approach by reviewing actual transactions between private-sector players like investors, entrepreneurs, and manufacturers, and with governments and then identified obstacles that were preventing transactions from moving forward. A large reason for the success of Power Africa in the past was the power of diplomacy to level the playing field for U.S. investments in the energy sector. US President Trump and his administration announced that Power Africa would be dismantled, after more than a decade of successful work on the continent. With almost all of Power Africa's programmes listed for termination, the diminishing role of the US in Africa's energy sector opens opportunities for new alliances and greater intra-African collaboration. Energy financing must be favourable The challenge for Africa is that it needs to industrialise and electrify its economy, but at the same time, it needs the finances to do so in a sustainable way. Africa has also been most severely affected by climate change, and so its infrastructure development needs to be climate-resilient. Most African nations don't need an energy transition, but energy accessibility. Many African countries are grappling with rising inflation, which has also impacted the amount of developmental finance available to African nations. But America may want to maintain its presence and footprint in Africa's energy sector, especially as China seeks to play a leading role in the continent's infrastructure development. Despite the challenging global environment, Africa needs its member states and voices to unite with a collective vision to fund Africa's energy revolution with international financing mechanisms that are just. After all, Africa is responsible for less than 3% of the world's carbon emissions and home to massive, unlocked energy potential, while also being home to 1.2 billion youth aged between 15 to 24 years that account for 16% of the global population (according to the UN). Greg Nott is Director Norton Rose Fulbright South Africa Inc
South China Morning Post
21-06-2025
- Politics
- South China Morning Post
UN needs overhaul to take on today's global challenges, former chief Ban Ki-moon says
A former UN secretary general has called for an overhaul of the United Nations to better confront global challenges as 'some powerful nations' seek to undermine the institution. Ban Ki-moon , who was secretary general of the United Nations from 2007 to 2016, said in Hong Kong on Tuesday that the conflicts in Ukraine and Gaza showed the need for a multilateral response. 'The illegal Russian war against Ukraine and the horrific war in Gaza represent one of the most dangerous moments for global security, and challenges to multilateralism, in decades,' Ban told the Fullerton Forum hosted by the University of Hong Kong's Centre on Contemporary China and the World (CCCW). Ban said that various global crises, including these conflicts, pandemics and climate change, 'have shown how we are all interconnected'. 'They also make it clear that we need multilateral responses,' he added, according to the speech published by the CCCW. In his speech, Ban thanked China for its role in implementing the Paris Climate Agreement and for its efforts to combat climate change. Ban, who is now deputy chair of The Elders, a human rights group composed of international statesmen founded by late South African president Nelson Mandela, took direct aim at US President Donald Trump, saying the shift towards unilateralism had been 'bolstered by the advent of Trumpism' in the United States.
See - Sada Elbalad
31-05-2025
- Business
- See - Sada Elbalad
FM Meets Ban Ki-moon to Discuss UN Reform, Gaza Crisis
Nada Mustafa Badr Abdelatty, Minister of Foreign Affairs and Migration, received former United Nations (UN) Secretary-General Ban Ki-moon on Saturday. Abdelatty praised Ban Ki-moon's efforts during his leadership of the United Nations, as well as his current contributions to international discourse and his dedication to promoting peace, justice, and environmental protection through his membership in "The Elders." Moreover, FM emphasized that Egypt consistently works to uphold and stabilize the multilateral international system and supports its role in confronting the world's interlinked global challenges. He also stressed the importance of cooperation as a vital means to promote both regional and international stability and development, especially amid unprecedented geopolitical and economic developments around the world. In this context, Abdelatty reaffirmed Egypt's steadfast commitment to the core principles of the UN Charter since joining the organization. He noted that Egypt's foreign policy has been grounded in these principles and reaffirmed the country's commitment to the United Nations' central role in maintaining international peace and security and promoting sustainable development for all nations. Furthermore, FM outlined Egypt's position regarding the evolving situation in Gaza, highlighting Cairo's intensive efforts to achieve a ceasefire. He also addressed the catastrophic humanitarian crisis in the strip caused by Israel's blatant violations of international law and international humanitarian law. In addition, he reaffirmed that Egypt will continue its efforts, alongside the United States and Qatar, to achieve a ceasefire, ensure the safe and sustained delivery of humanitarian aid to Gaza, and support the political horizon for a two-state solution. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
