The R4.5 Trillion Opportunity: Reimagining Empowerment for a Bigger South African Economy

Imagine a South Africa where the economy isn’t just growing, but booming. A place where the GDP isn’t R7.5 trillion, but a staggering R12 trillion. This isn’t a fantasy; according to Investec CEO Fani Titi, it’s the future we lostand the one we could still reclaim.

In a powerful critique, Titi has reframed the national debate on empowerment, arguing that the path to this R4.5 trillion larger economy requires a fundamental shift: we must prioritize contribution over compliance and productivity over patronage.

The Fork in the Road We Once Took

Titi points to a recent but fading memorythe period between 2002 and 2008. This was an era when Broad-Based Black Economic Empowerment (B-BBEE) was taking root, and the results were transformative. Black and female representation in management soared, skills development expanded, and opportunities for black-owned businesses grew.

Critically, this wasn’t achieved at the expense of the economy. In fact, it was the opposite. Economic growth averaged 4% per year, business confidence hit record highs, and unemployment dropped significantly from 28% to 21%.

“That trajectory,” Titi suggests, “was the right one.” Had it continued, we would be living in a profoundly different country todayone with higher employment, a broader tax base, and far more resources for education, healthcare, and social security.

From Brake to Flywheel: A New Empowerment Deal

So, what went wrong? Titi argues that the mechanism of empowerment lost its way. The system became skewed towards “rent-seeking and corruption,” and the appointment of unqualified individuals eroded state capacity.

His solution is not to abandon the moral imperative of economic inclusion, which he calls a “profound mistake.” Instead, he proposes a radical recalibration to transform empowerment from a brake on growth into its flywheel.

This new framework would focus on four key areas:

1. Value for Money in Procurement: Taxpayer funds must be used to deliver quality services, not to enrich a connected few.

2. An End to Cronyism: State capacity must be rebuilt by appointing qualified individuals, not well-connected cadres.

3. Employee Participation: Widen ownership through employee share schemes instead of concentrating equity in a handful of individuals.

4. Equity Equivalence: Channel resources into public benefit programmes that create broad, lasting impact.

Ultimately, Titi says, the goal should be to “reach the largest number of economically excluded citizens in the shortest possible time.” This means focusing on poverty and capability, not just race and gender as tick-box exercises.

The message is clear. The potential for a more prosperous, inclusive South Africa is not lost. It’s a R4.5 trillion opportunity waiting for us to make the right choices, building an economy where empowerment and growth are powerful allies, not opposing forces.