Rayhaan Survé, the deputy chairman of Sekunjalo Investment Holdings suggested digital transformation as a way South Africa could encourage the youth to be entrepreneurs. Picture: Armand Hough/Independent Newspapers
IN A wide-ranging and open interview, Rayhaan Survé, the deputy chairman of Sekunjalo Investment Holdings (SIH) and the Survé Family Office, expressed his opinions on the future of the country's economy, the part BRICS will play in the development of the nation, and the difficulties the youth of South Africa face in a changing employment environment.
Survé, who oversees the Group’s investment portfolio with a particular focus on technology, biosciences, and sustainability, provided insightful analysis on the country’s economic future, sustainability, and the possibilities of digital transformation to change the terrain.
With rates around 60%, youth unemployment is one of the most urgent issues South Africa faces. Survé suggested digital transformation as a way South Africa could encourage the youth to be entrepreneurs.
“Covid knocked us hard, and we are still recovering. For young people in particular, the employment scene is terrible. Still, the digital sphere offers chances. Starting companies is now far simpler thanks in part to digital tools. With less resources, tools such as artificial intelligence (AI), website builders, and accounting software enable you to start and run a company,” he said.
Survé, whose ambition is to make a positive impact by empowering youth through education and entrepreneurship, is of the view that the issue stems from many young people either not knowing about these technologies or being unsure on how to apply them. “Thanks to digital transformation, there are so many materials accessible today that did not exist five years ago. Young people should get acquainted with these instruments.”
The dearth of cash for new companies brought still another urgent problem. Through a youth-oriented branch of the National Development Bank (NDB), Survé sees great possibility for BRICS (Brazil, Russia, India, China, and South Africa) to close this disparity. Although the NDB is now mostly focused on infrastructure projects, he recommended that it might also have authority to directly fund young entrepreneurs with creative ideas.
“The BRICS project should have a youth development pipeline included in it. Although the NDB is more preoccupied with national infrastructure projects, I believe there is space for a branch helping young entrepreneurs. BRICS should give this some thought rather carefully,” Survé said.
When asked how the NDB differed from established financial institutions such as the World Bank and the International Monetary Fund (IMF), Survé said: “While the NDB offers a fresh path for development capital, we should evaluate all of South Africa’s options to garner the best agreement. It’s about landing the best bargain. With blended finance – which the NDB provides – South Africa has better terms than we have ever seen. It helps us to avoid being encumbered by debt denominated in foreign currencies, which has harmed us in the past.”
Although the NDB presents a more fair financial partnership, in his opinion the details of every contract should always be closely examined to make sure they do not ultimately damage the country’s economy.
The businessman was clear-eyed about the possibilities and challenges such a development would provide, while rumours about a BRICS currency substituting the US dollar in international transactions abound. Although he supports a BRICS currency, he noted that it was still far off.
“A BRICS currency may offer substitutes for nations like South Africa, where depending too much on the dollar leaves weaknesses. When exchange rates shift, dollar-denominated debt can wreak havoc on economies. The NDB’s creative feature is its readiness to provide loans in local currencies, thereby reducing the dollar-related risks,” Survé said.
He underlined, meanwhile, that any new money would not replace the US dollar but rather provide an extra choice for developing nations such as South Africa.
Survé also addressed issues with AI and how it affects employment, particularly for the youth. Although some worry that AI will replace employment, he thinks that by improving efficiency and output it would generate additional possibilities.
“AI will take over some, especially the boring, repetitious ones. It will also lead to new occupations needing critical thinking and imagination. The secret is to adjust and pick up skills using AI techniques to make you indispensable. AI increases productivity; when companies do better, more employment results,” he said.
Turning to sustainability, Survé, who oversees the group’s Oceans and Climate initiatives including African aquaculture, revealed his enthusiasm for South Africa’s capacity to lead in spheres including energy, seas, and climate. With its long coastline, he is of the view that South Africa’s geography would help it dominate globally in aquaculture, renewable energy, and maritime economy.
“In terms of sustainability, South Africa offers leadership rather than a following chance. Our coastal resources would provide a centre for environmentally friendly aquaculture and renewable energy initiatives. The secret is to set ourselves up to draw in FDI,” he said.
Survé tackled the drop in FDI in South Africa, blaming a “loss of trust” in the nation’s future development. Still, he remained forward-looking, noting that South Africa now had a chance to rebuild investor trust and change its reputation.
“Although South Africa was previously seen as a shining investment target, we have had a few difficult years. We now have a chance to present ourselves as a place of hope. If we centre sustainability, technology, and our young people, we can rebuild that confidence,” he said.
When asked what results South Africa should focus on to guarantee a sustainable future, Survé underlined a mixed strategy, using public and private sectors. He underlined the need of organisations such as the NDB, also known as the BRICS Bank, and how greatly they might help to provide the country with much-needed funding.
“Based on the NDB, I understand that we always have to put the nation first – above any one interest. Whether it’s money from the NDB or sources from Europe or the United States, the attention should be on what benefits South Africa,” he said.
Survé said that both public and private sectors have a role to play for South Africa. From the public standpoint, we must be diplomatic in our relations and revitalise partnerships globally with BRICS countries and Western nations. The private sector must focus on establishing global partnerships that promote South African youth talent to the global stage and reinvigorate the economy for the future.
“We have to be careful not to be making agreements giving other countries authority over South African assets or syphoning money. We must keep alert in assessing any agreements that will not benefit the people of South Africa,” he said.
From a private sector standpoint, especially considering the geopolitical environment of today, he advised companies to seize the possibilities the NDB and BRICS countries present.
Survé, who has completed his studies for an MBA at the Oxford Said Business School and prior to that a BSc from Babson College, advised the country’s youth to be flexible and welcome change, especially in the technical area.
“Though the world is changing fast, people might be sluggish to adjust. Young people have to grow personally to satisfy the needs of the more digital modern economy. Though you are not a software engineer, knowing the tools and technology at hand will open new doors,” he said.
The thoughts of this corporate leader present a roadmap for South Africa to negotiate these uncertain times and come out stronger on the international scene as it deals with the twin issues of high youth unemployment and a slow economic recovery.