Commercial businesses need to consider the impact of their operations and ensure that their financial decisions improve the communities in which they operate, or they – and the broader economy - will be negatively affected over the long-term. The way to do this is to build and maintain relationships with government and other stakeholders, such as employees and unions, SMEs and civil society groups through private-public partnerships.

This is easier said than done, but if corporations can get this right, they could create and champion sustainable solutions to many problems faced in the business and industrial sector, instead of feeling disempowered and left out in the cold when it comes to influencing policy and the status quo.

The challenges

It is widely accepted that the private sector has much to offer in terms of financial resources, people, skills and experience as an investment in public infrastructure and services, yet poor service delivery is hampering many development opportunities, leaving many commercial operations with little choice but to postpone the deal until conditions improve. The electricity crisis, for example, is preventing many new projects from getting off the ground due to an inability to secure power.

It is becoming increasingly clear that public-private partnerships not only benefit commercial enterprises, but also boost the economies in which they operate. There is a cascading effect that starts with education and skills upliftment: more locals are being hired and trained, and this creates sustainability that runs through to future generations and supports entire communities. For example, skilled workers can afford to send their children to adequate schools, who in turn acquire the qualifications needed to find good jobs.

It is believed that entrepreneurs are needed to grow the country, but this cannot be done in isolation; getting buy-in from business and governments is what is needed, as small-business may have the ideas, but they need access to markets, clients and infrastructure.

Positive signs

Having spoken to industry leaders, Gauteng Premier David Makhura said that there is an appetite and passion to invest in the revitalisation of the Johannesburg CBD. The premier applauded the banks, mining houses, state-owned enterprises and other major companies that continue to invest in both the CBD and Johannesburg’s financial district of Sandton. He further invited the private sector to partner with the province to improve the face of our central business districts and inner-cities through investing in better buildings, cleaning the streets and greening the city’s open spaces.

Furthermore, the Premier believes that it is through partnerships that public and private sectors can both achieve their goals to the benefit of everyone in the Gauteng province.

From a business perspective, companies that get in on the ground floor of these projects get first-mover advantage. This will enable them to maximise the opportunities that will always be available to the market leaders, but they must ensure that all deliverables are met.

Standard Bank is increasingly committed to helping companies achieve these objectives; as they grow, they employ more people and generate wealth, and so the multiplier effect is truly in action. This is why a region that can get it right will grow much faster than other segments of the economy. 

This is one of the reasons why we are currently driving an incubation model where we educate new business leaders to ensure their ideas are commercially viable and help them take the first step to get going.

Government is offering entrepreneurs and small business support via friendlier policies and even public sector money, but the most critical ingredient of all will be the rising involvement of the private sector, whether it is via funding, public-private partnerships, or specific community and environmentally focused initiatives.

Standard Bank will continue to partner with its clients on this journey. As the bank with the largest assets on the continent, it is well placed to help businesses reach the right markets and people at the right time. Dialogue and engagement will continue to remain a critical component in the market, but with the correct mind-set from the public and private sector, commercial businesses will begin to mushroom and grow. It will then no longer just be about talking about the potential, but witnessing it in action.

Craig Polkinghorne, Head of Business and Commercial Banking at Standard Bank