In the first quarter of this year, South Africa's economy contracted by 3.2%, making this the worst performance in a decade.
How is the business sector responding to the challenge that this decline has brought?
Bongani Bingwa chats to Business Leadership South Africa (BLSA) chief executive officer Busi Mavuso about the economy.
The problem is really about leadership, I don't think we as government and business, in particular, realise that we ought to make the tough economic decisions now. The business of government is to make tough economic choices and to ensure that the decisions that it makes are going to benefit the rest of the country.— Busi Mavuso, CEO - Business Leadership South Africa
Mavuso is worried that the African National Congress (ANC) doesn't seem to be grasping the concept of making tough economic choices.
I am worried that the ANC doesn't get that we are on the edge of a precipice, they don't get that we have just this chance to get things right, if we don't we will be another failed African state.— Busi Mavuso, CEO - Business Leadership South Africa
She says the mandate that South Africans gave the ANC after 8 May elections were that it needed to heal our fractured society and deal with the economy.
But we haven't seen anything so far, accept talk in the right direction. And I think at the helm for us as business is policy certainty, markets are premised on certainty and the lack thereof is problematic.— Busi Mavuso, CEO - Business Leadership South Africa
South Africa is sitting with more people unemployed in all the provinces, except the Gauteng and the Western Cape, she notes.
We are sitting with 55% unemployment. We are sitting with inequalities that are at its highest. We have just overtaken Brazil as an unequal society in the world. We are sitting with poverty levels of 53%.— Busi Mavuso, CEO - Business Leadership South Africa
She says South Africans need to understand that economic growth is constraint by the political economy.
So what the ANC does, affects us. It matters to us as business because politics determines the economy.— Busi Mavuso, CEO - Business Leadership South Africa
Listen below to the full interview: