South Africa stands at a critical juncture. As we navigate the complexities of transitioning away from coal-dependent industries, we must look beyond traditional economic models and embrace transformative approaches that address not only our energy future but also the profound social inequalities that plague our nation.
There is a compelling case for sustainable tourism as a powerful catalyst for our just transition — one that can simultaneously drive social representation, financial inclusion and environmental sustainability, all while contributing meaningfully to social justice.
Statistics paint a sobering picture of our current reality. South Africa grapples with very high unemployment, while our youth unemployment rates are the highest globally. Nearly a quarter of our population experiences food poverty and 63% live below the upper-bound poverty line. Our income inequality, reflected in our household Gini coefficient of 0.67, is the highest in the world, while our corporate income Gini of 0.84 further illustrates the severity of our systemic disparities.
Perhaps most troubling is that 27% of South African children under the age of five suffer from malnutrition — a statistic that not only breaks our hearts but also threatens our social stability and future prosperity. These challenges are far more than numbers; they reflect the daily struggles of millions of South Africans who deserve better.
Sustainable tourism offers a unique opportunity to address these interconnected challenges through a single, powerful vehicle for change. Tourism creates extensive supply chains that can benefit entire communities. From local guides and craft producers, transport services and hospitality providers, to food and waste ecosystems, tourism has the power to extend economic opportunities across all segments of society.
In provinces such as Mpumalanga, where jobs in coal mining may be lost, tourism can provide alternative livelihoods that are both environmentally sound and economically viable. The natural beauty of these regions, their landscapes, wildlife and cultural heritage represent assets that can generate sustainable income for rural communities that have been excluded from economic development, also benefiting generations to come. But this is not simply about replacing one industry with another. This is about fundamentally reimagining how we structure the South African economy to serve all people, not just a privileged few.
The banking industry has historically played a crucial role in shaping economic development and we must now use that influence to drive positive social change. This requires a paradigm shift towards understanding the untapped commercial potential that lies in the creation of an inclusive and just economy.
Singapore’s DBS Bank is an excellent example of how financial institutions can thrive by positively serving society. Noting their systemic responsibility and commitment to continue to bank “currently” unprofitable clients, DBS has demonstrated that banks can be powerful agents of social transformation while achieving sustainable commercial outperformance.
The local industry has adopted a similar approach by pursuing an inclusive “profits follow value” business model. This paradigm shift requires us to reappraise the commercial potential of deliberately cocreating equitable and inclusive opportunities through empowering local communities and contributing to sustainable development. Sustainable tourism projects, through community ownership and environmental stewardship, represent exactly the kind of investments we should be prioritising.
Central to our approach must be the principle that economic development should create equitable access to opportunities for all citizens
The scale and complexity of our challenges require that we partner as businesses, communities, policymakers and industry experts. No single sector, institution, or level of government can alone achieve a just transition. Partnerships are crucial and must be predicated on mutual respect, shared responsibility and equitable distribution of the benefits to be earned. Local communities must have a seat at the table. Their knowledge, needs and aspirations are integral to sustainable tourism.
Policymakers must create enabling environments that support sustainable tourism while ensuring appropriate regulation and oversight. The financial sector must provide innovative funding mechanisms that unlock the inherent commercial potential of sustainable tourism projects, especially given that positive social and environmental outcomes are likely to accompany strong financial returns.
Central to our approach must be the principle that economic development should create equitable access to opportunities for all citizens. This means ensuring that sustainable tourism development benefits local communities directly, provides sustainable livelihoods and respects cultural heritage and environmental limits. We must resist the temptation to pursue tourism development that simply replicates existing patterns of inequality and exclusion.
The transition to a sustainable, equitable economy will not happen overnight, nor will it happen without deliberate effort and sustained commitment. We must be bold in our vision and unwavering in our commitment to justice. Sustainable tourism offers a practical pathway to begin this transformation. It provides immediate opportunities for economic diversification, not only in coal-dependent regions but across rural communities, while building the foundation for a more equitable and sustainable economy overall.
This is not just about changing our energy sources or developing new industries; it’s about creating a South Africa where every child has access to proper nutrition, where young people can find meaningful livelihoods and where the benefits of economic growth are shared fairly among all our people.
• Kelly is executive head of the COO’s office at Nedbank.
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