CEO’s Note

Productivity: a catalyst for competitiveness and sustainable growth and development

As we wrap up October, which is Productivity month, I thank the Productivity SA Board for their leadership and commitment to ensuring that, despite the challenges faced by Productivity SA, they are resolute in ensuring that the Entity takes its rightful space in leading a productivity driven growth and development agenda in South Africa. I also thank Productivity SA staff for their commitment in delivering on the mandate of this Entity, which is to promote employment growth and productivity thereby contributing to South Africa’s socio-economic development and competitiveness.

The Productivity SA family led by the Board are committed to ensuring the achievement of Goal 8 of the Sustainable Development Goals (SDGs), which calls for the promotion of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. We promote a productivity culture and mind-set with the conviction that, productivity growth is a catalyst for competitiveness and sustainable growth and development.

As we celebrated Productivity month and Awards, we amplified our position and voice that productivity is important and should be a national priority, and that as a country, we cannot continue to ignore this very critical bedrock for growth.

During Productivity month, we also recognised the recipients of the 39th National Productivity awards. They are true productivity ambassadors who have proven to us that, productivity is the effective and efficient use of resources to achieve desired outcomes, and this culture should be instilled in our society if we want to see change.

They are a shining example that, if South Africa is to achieve a high-income economy, we should acknowledge and embrace productivity and innovation as the main drivers and game changer for long-term economic stability and living standards. The dialogue should also focus on the contribution of the workforce to the productivity and competitiveness of the workplace, and in general of the economy.

This we should do emboldened by empirical evidence from studies across the world, particularly in the most competitive economies that, improving the levels of national productivity and innovation is the most efficient way to realise the average GDP growth rate, employment growth, business efficiency and reduced costs of doing business.

Furthermore, there is empirical evidence which suggests that, it is arithmetically impossible for a country to create and sustain wealth if wages do not grow significantly faster than inflation, and that these cannot happen unless productivity grows at the same rate. Therefore, it is impossible to discuss productivity without considering the contribution of labor as it is a major driver of productivity. It is worth appreciating that, behind productivity growth is the worker, a strong work culture, and the worker working smarter.

It is therefore, critical that even after Productivity month, the discourse of slower productivity growth in the productive sectors of our economy generally, in particular in SMEs should continue and be in the spotlight and our priority.

We should steadfastly promote and facilitate best practices in productivity and innovation to improve the competitiveness of our economy, with increased support for entrepreneurship and employment opportunities for youth and women as well as small and medium enterprises (SMEs). We should be doing this with the conviction that, entrepreneurs and SMEs are more likely to use innovation to develop products and services that people want or need, to create decent jobs, and enhance sustainable and inclusive economic growth.

It is for these reasons that all the role players in the South African economy, both in industry and society in general should be mobilized to join forces and focus on the productivity revolution. For a revolution of this kind and magnitude, we require productivity appreciation, productivity revolutionaries, and productivity ambassadors.

Please have look at the newsletter and see “productivity in motion”.