South Africa

The 8th MNC Trend Report provides an overview of the company information contained in the SA MNC Database. The database includes company finances, operations, remuneration and geographical spread of 91 South African MNCs that operate across Africa. The MNC Database has been populated with this information since 2008, which provides a unique dataset from which to analyse financial trends. This report is focused on two main areas of study. Firstly, the financial trends of the 91 sampled companies are analysed within 14 economic sectors, including revenue growth as well as revenue compared to competitors. In addition to this, each company’s profit before tax (PBT) is analysed compared to its sector and competitors. Within this context, the remuneration strategies of the top level of directors is analysed. Finally, we take a quick look at the total remuneration packages of directors compared to the lowest employees in the company.
The last section of this report, titled ‘the Future of Work’, takes a closer look at the developments around the automation of jobs. This section aims to put this within the broader context of the developing world, as opposed to the developed world. It is questioned whether the reality in the developed world is a reality in Africa, and also makes some suggestions as to how unions and workers can use technology to further their own agendas.

This paper looks to uncover the growth traps and opportunities for the South African economy, with a focus on underlying labour market dynamics. We explore the potential of South Africa’s demographic dividend. We also consider the structure of the labour market and the growth-employment interactions, which uncover the skills-biased labour demand path of the economy and a rising trend in the use of labour brokers to source temporary workers. Finally, we show a new labour market trend has emerged: a rise in the share of public sector employment along with higher conditional returns to public sector workers than to those in the private sector.

The re-election of the Republic of South Africa as a non-permanent member of the United Nations (UN) Security Council for 2011 to 2012 follows shortly after its previous tenure from 2007 to 2008, and has attracted attention from a variety of quarters. Much of this attention is the result of selective interpretations in the West of the country’s conduct during its previous tenure.1 This is unfortunate because the associated caricature of Africa’s largest economy, the only African member of the G20 and which aspires to membership of the BRICs (Brazil, Russia, India and China) and to permanent membership of the UN Security Council, prevents a serious interrogation of its potential role on the Council during the next two years.

In this monograph the Institute for Security Studies and the Pardee Center for International Futures provide an extensive analysis of the projected course of African development to 2050. Combining the deep and wide knowledge of Africa within the ISS with extensive use of the IFs modelling system, this discussion goes beyond past work in a number of ways. It looks across most major issue arenas: demographics, economics, sociopolitical change, the environment and human development itself, including health and education. It explores further into our future than perhaps any other extensive study of African futures has ever done. While not pushing forward specific policy initiatives, it provides a context within which those who pursue sustainable human development can consider policies.

This paper analyses future trends for intrastate conflict in Africa up to 2050 using the International Futures (IFs) model. After reviewing the main post-Cold War patterns of conflict and instability on the continent, the paper discusses seven key correlations associated with intrastate conflict in Africa. It then points to a number of reasons for the changing outlook, including the continued salience of various ‘structural’ conditions that drive intrastate violence even during rapid economic growth, recent improvements in human development alongside a strengthened regional and international conflict prevention, conflict resolution and peacebuilding regime. Finally, the paper explores how multipolarity may impact on stability and forecasts trends for intrastate conflict in West, Southern, Horn/East and Central Africa. The authors expect large-scale violence to continue its steady decline, although the risk of instability and violence is likely to persist, and even increase in some instances.

This publication, the first in a series of three, considers the feasibility of the central economic growth target that is set out in South Africa’s National Development Plan 2030. It then explores some of the associated human development targets. The paper first looks at the core characteristics of the economy. Against that background and analysis we argue that the core economic growth target of 5,4 per cent average gross domestic product, the associated size of the economy and the income per capita targets are very ambitious. With a huge effort, clear leadership and painful adjustments the targets may be achievable, but it is hardly possible to overestimate the effort that will be required from across South Africa’s diverse interest groups and affected communities. Clearly the current capital- intensive nature of South Africa’s economic growth model will not succeed in delivering sufficient jobs without structural changes to the economy and to current policies. Many other targets, for example in education and infrastructure, are achievable with lower rates of economic growth. This may point to a lack of coherence between the models (and assumptions) used for detailed planning between the different sectors. While economic growth is very important for South Africa, the quality of growth is equally important if the country is to address its deep structural inequality and unemployment challenges.

This policy paper provides an overview of a longer monograph that provides long-term forecasts of fragility in Africa. Using the International Futures system (IFs) data-analysis and forecasting tool, the paper provides a long-term forecast of 26 fragile African countries. They are chosen on the basis of comparative lists of fragile countries based on indicators that reflect the fragility syndrome. In conducting the forecast, the authors argue that fragility should be understood as a syndrome, or set of related conditions, that operates in a system that is mutually reinforcing.

Despite sterling growth in some countries, a number of African countries are caught in a vicious cycle of violence, chronic poverty, inequality and exclusion. These ‘more fragile’ states are on a slow trajectory to long-term peace and development. Using the International Futures system (IFs) data analysis and forecasting tool, the monograph provides a long-term forecast of 26 fragile African countries. The forecasts suggest that in the long-term ten countries on the continent will continue to remain fragile into the mid-21st century. Others, however, have a good chance of embarking on a pathway from fragility to middle-income conditions by 2030 or possibly 2050. The monograph concludes with a list of recommendations.

This paper presents three scenarios for South Africa up to 2030: ‘Bafana Bafana’, ‘A Nation Divided’ and ‘Mandela Magic’. The nation’s current development pathway, called ‘Bafana Bafana’ is the well-known story of a perennial underachiever, always playing in the second league when the potential for international championship success and flashes of brilliance are evident for all to see.‘Mandela Magic’, on the other hand, is the story of a country with a clear economic and developmental vision, which it pursues across all sectors of society. Competition is stiff and the barriers to success are high. The scenario of ‘A Nation Divided’ reflects a South Africa that steadily gathers speed downhill as factional politics and policy zigzagging open the door to populist policies. The impact of the policy and leadership choices that South Africans will make in the years ahead, explored in this paper, is significant. The South African economy could grow 23 per cent larger in ‘Mandela Magic’ compared with its current growth path (‘Bafana Bafana’). The paper concludes with seven strategic interventions required to set South Africa on the most prosperous 'Mandela Magic' pathway.

After three tortuous years, cabinet approved the Defence Review in March 2014. The review is a huge improvement on the previous public document. Its 15 chapters include considerable background material that may not all have been necessary – but given the state of the SANDF, this is as much a manual to fix the department as it is a path towards the future. The result is a mixture of matters that relate to internal administration, policy, strategy, military doctrine, discipline and human resources. Although it does not set out alternative force design options, the review does present the costs of its preferred option. This policy brief interprets a number of the review’s key conclusions and presents associated policy considerations, with a focus on the financial affordability of the expenditure targets.