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By Mbali Phewa
South Africa’s transformation journey has reached a critical moment. More than three decades into democracy, the question is no longer whether transformation remains necessary, but whether the current approach is sufficiently advancing inclusive economic growth. While significant progress has been made, persistent inequality, unemployment and uneven economic participation remind us that compliance alone cannot deliver the outcomes our country seeks.
For many organisations, transformation has become synonymous with scorecards, targets and regulatory reporting. These remain important mechanisms for accountability, but they were never intended to define transformation itself. Compliance should be regarded as the foundation, not the destination. The true purpose of transformation is to expand economic participation, create opportunity, develop capabilities and create lasting prosperity. When transformation becomes an administrative exercise rather than a catalyst for economic inclusion, we risk losing sight of its broader national purpose.
Inclusive growth provides the bridge between transformation and economic prosperity. It recognises that economic growth and transformation are not competing priorities, but mutually reinforcing imperatives. Growth creates jobs, investment and innovation while transformation ensures that these opportunities become accessible to a broader segment of society, particularly those historically excluded from meaningful economic participation. Pursued together, they strengthen productivity, enhance competitiveness and build a more resilient and equitable society.
South Africa’s economic realities make this imperative impossible to ignore. High levels of inequality, persistent youth unemployment and growing social pressures continue to constrain social mobility, consumer demand and long-term economic potential. Millions of capable South Africans remain disconnected from the economy, while many communities still struggle to access opportunities that can support the country’s collective capacity for growth. Inclusive growth requires a deliberate and sustained commitment to changing these outcomes by creating pathways to meaningful participation in the economy.
This demands a shift in how we define success. The next phase of transformation must therefore focus less on optimising scorecards and more on achieving measurable socioeconomic impact. We should assess success not only through compliance metrics, but through the number of sustainable jobs created, businesses grown, entrepreneurs supported and individuals equipped with the skills required to participate meaningfully in the economy. Transformation becomes credible when people can see and experience its impact in their daily lives.
A critical component of inclusive growth is skills development. The nature of work is changing rapidly, driven by digital transformation, automation and artificial intelligence. As economies evolve, organisations have both a strategic and societal responsibility to invest in building future-ready capabilities. Learnerships, bursaries, apprenticeships, internships and partnerships with educational institutions are no longer optional additions to transformation strategies; they are essential investments in economic resilience, productivity and social mobility. Building future-ready capabilities is fundamental to creating a workforce that can thrive in an increasingly dynamic global economy.
Enterprise and supplier development also remain powerful levers for inclusion. Supporting small businesses, particularly black-owned enterprises, creates employment, stimulates local economic activity and creates pathways to sustainable wealth creation. Inclusive value chains strengthen businesses while broadening economic participation across sectors. This is how transformation moves beyond redistribution of existing opportunities and begins to generate new economic value for the broader economy.
At Nedbank, we believe transformation is both a moral and a business imperative. Our approach is grounded in the understanding that long-term business success is intrinsically linked to the health, resilience and prosperity of the society in which we operate. As more individuals, entrepreneurs and communities participate meaningfully in the economy, businesses benefit from stronger markets, deeper talent pools and greater opportunities for sustainable growth. Inclusive growth therefore represents not only a societal obligation, but a strategic business opportunity.
The challenge before South Africa is not whether we should pursue transformation, but how we ensure it delivers meaningful and lasting impact. It calls for leadership that prioritises outcomes over optics, opportunity over exclusion and implementation over intention. Transformation succeeds when it creates sustainable economic participation, broadens access to opportunity and builds a more prosperous future for all South Africans.
If South Africa is to realise its full economic potential, transformation must increasingly be viewed as a growth strategy rather than simply a compliance framework. When we place inclusive growth at the centre of our efforts, transformation becomes more than a regulatory obligation – it becomes a powerful driver of innovation, competitiveness, investment and shared prosperity. That is the transformation agenda capable of building an economy that is truly inclusive, investable and impactful, creating sustainable opportunities for current and future generations of South Africans.
Mbali Phewa is the Executive Head: Transformation at Nedbank
