What Adrian Gore really thinks about South Africa

Discovery CEO Adrian Gore is extremely bullish about South Africa’s future, with the formation of the Government of National Unity (GNU) set to drive real economic change in the country. 

However, Gore said it is vital that the narrative surrounding the country becomes more positive and not one of inevitable decline. 

As vice president of Business Unity South Africa (BUSA), Gore is intimately involved in the increasing collaboration between businesses and the government in South Africa. 

“A year ago, we were in a very different position. The world was in a risky place and remains so. But, ironically, our country has come a long way in just one year,” he said at Discovery Day earlier this month. 

In particular, the success of the government’s partnership with businesses and the formation of the GNU has dramatically improved South Africa’s position. 

“I think what has been achieved is remarkable. This partnership was built a year ago focusing on energy, transport and logistics, and crime and corruption.”

“By focusing on these three things, we can really turn the fulcrum for economic growth and create jobs in the process.” 

Gore highlighted the sharp reduction in load-shedding this year as an example of what can be achieved when businesses and the government work together. 

Load-shedding has largely disappeared in 2024, with the number of cumulative hours with power cuts down 76% year-to-date compared to 2023.

South Africa has also gone six months without load-shedding – the longest streak since 2020. 

He also believes the issues with South Africa’s logistics network and ports have bottomed out, with government and business making good progress in addressing key problems. 

“I think it is amazing. It shows what South Africans can do with a clear focus – gigawatts on the grid and megatonnes through the logistics network. This is a testament to both the government and business.” 

Gore said this exemplifies how quickly things can be changed and how South Africa’s decline can be reversed. 

Crime and corruption are much more difficult problems to solve, and progress is slower than in other areas. 

The formation of the GNU is set to accelerate this progress, with Gore being very positive about the new government running South Africa. 

“The GNU is a very, very big step. I think South Africa has an amazing set of attributes; the manifestation of this is the GNU.” “There is a lot still to do, and risks are associated with it, but we are moving in the right direction.” 

Discovery noted in its recent annual results that the formation of the GNU has resulted in widespread positivity. This is most clearly seen in the country’s financial markets. 

The JSE All Share has hit new all-time highs, the rand has strengthened versus the dollar, and bond yields have declined. 

However, questions remain about whether this optimism can be sustained and translated into real change in the South African economy. 

Gore told Daily Investor in an interview following the company’s results that optimism is vital for any economy to grow and plays a key role in shifting the narrative around the country. 

He explained that it is vital for the economy to grow, even at just 2% to 3% – the growth does not have to be dramatic. Even that level of growth will feel different to everyone compared to the stagnation of the past decade. 

South Africa also has a very strong job coefficient. This means that when the economy grows, even at a relatively low level, jobs are created. 

Gore said that for every percentage point of economic growth, the South African economy increases employment by between 0.5% and 0.7%. 

This level of economic growth will also boost sentiment in South Africa and from foreigners towards the country. 

Gore said the narrative surrounding the country is both causal and responsive to economic growth. 

“We have got to try and ditch the sense that the country is in inevitable decline. The current thought is that no matter what happens, it will revert to decline. I think that stops investment.” 

“And so, if you can create a different narrative with economic growth, you will see people on the street feeling more positive and businesses investing more. The narrative in our country is always worse than it really is.” 

“I think, you know, if you change that narrative and give us some confidence with the economic growth, I think you will see a massive transfer of benefit to the ordinary person, and then you get a kind of a flywheel effect,” Gore said.