WHO WE ARE

OPERATING CONTEXT

SAICA continues to operate in a dynamic operating context. This context is defined by the global and local drivers that influence our ability to function, as well as the macroeconomic factors in South Africa. In some instances, our direct control of these is limited, but we consider the trends to make strategic choices and leverage opportunities to make a difference for long-term sustainability and value creation.

SOCIO-ECONOMIC CHALLENGES

The South African economy is struggling, and the political climate is volatile

The South African socio-economic context is characterised by:

Low gross domestic product (GDP) growth and high levels of unemployment
Inflation driving higher interest rates and constraining spending
Ongoing load-shedding that is causing significant disruptions to the economy as well as increasing the cost and affecting the ease of doing business
Public infrastructure deterioration and poor service delivery
Social instability persists as rising inequality and youth unemployment continues
An unstable political climate as the country approaches the next election in 2024
The weak rand further contributes to the sluggish economy
Corruption continuing and slow progress in prosecutions evolving from the Zondo Commission, with some members implicated in the commission’s report

Challenges

Socio-economic challenges are characterised by high unemployment levels increasing, disrupted energy supplies, an unreliable power source and the effect on the economy, water shortages, a deteriorating infrastructure, rising corruption, a lack of accountability, governance and productivity, service delivery protests, an increase in immigration, outcomes of the Zondo Commission and implications for the profession

OUTLOOK

The South African Reserve Bank’s growth expectations for 2024 and 2025 have remained unchanged at 1,2% and 1,3% respectively
Unemployment remains high (around 32%) and youth unemployment exceeds 50%
Spending pressures are increasing to close the financing gap in health, infrastructure and higher education
Political instability is expected to persist leading up to the national elections in 2024

HOW THIS AFFECTS OUR STRATEGY/RESPONSE

Engaging, where necessary, with members to address non-payment of fees. SAICA depends on member fees for revenue and donations to fund projects addressing national imperatives. Pressure on business and members represents a risk in accessing sufficient financial capital to execute on our strategy
The importance for the sustainability of the profession and society of our strategic focus in contributing to national imperatives is emphasised
Engagement with government as a key stakeholder and we have a number of projects to support the effectiveness of the public sector
Hosting of inaugural Public Sector Summit aimed at fostering partnerships with key stakeholders to collectively address challenges impacting the public sector and citizens. The summit featured prominent stakeholders including National Treasury, the Public Service Commission, the Auditor-General of South Africa, and CIGFARO (see Standards report and SDG report, SDG 16)
Amendment of our by-laws required to streamline the disciplinary process
Hosting of the SAICA Difference Makers and Anti-corruption Summit at Leaderex, involving key stakeholders to devise solutions to address issues raised by the commission and contribute positively to the broader fight against corruption
Recognising that SAICA, its members, and all other business enterprises constitute our country, along with government and civil society. If we want a successful country, we must contribute towards the achievement of this, recognising that it is irresponsible to expect that government should undertake the fulfilment of this on its own