Business/government initiative ‘working for SA, and not for the governing party’

The business/government initiative can grow the economy by 3% if they succeed in resolving problems in the country regarding energy, transport and logistics and crime and corruption.

Business teamed up with government a year ago to tackle the energy crisis in the country through the National Energy Crisis Committee (NECOM). Earlier this year, businesses working with Business for South Africa (B4SA) raised R100 million to fund responses to the crises.

Organised business and government will collaborate by focusing on the key areas of energy, transport and logistics and crime and corruption. So far, 120 CEOs have signed the pledge.

Business Leadership South Africa (BLSA), B4SA and Business Unity South Africa (BUSA) met with president Cyril Ramaphosa and cabinet minister on Tuesday to consider their progress and priorities.

Martin Kingston, head of B4SA, said the country is in a crisis that must be stopped. “We identified three areas that we think can create a platform for growth. Our estimate is these contribute 3% to gross domestic product (GDP) growth.

“Without considerable growth, we will see increasing unemployment. We realise it will take time, but in six, 12 or 18 months, there can be reasonable prospects for growth.”

Paul Hanratty, CEO of Sanlam and member of B4SA, said growth of 3% will only steady employment and not increase it. He also warned these problems will not be solved overnight and will take years. Their submission to parliament showed that growth of 5% is actually necessary to create more employment.

“These systemic problems hold the economy back and are a considerable weight on the economy that interferes in its momentum. This is not the only show in town to get the economy going, but it is the only one focusing on these three issues,” Fuzile Lungisa, CEO of Standard Bank, added.

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Tackling the energy crisis

James Mackay, CEO of the Energy Council of South Africa, said business managed to get an undertaking from government that amendments to the Electricity Regulation Act will still be passed in parliament this year.

This will ensure the restructuring of the energy supply industry and create opportunities for competitive energy generation. Mackay is also confident the National Transmission Company will be licensed soon after Nersa approved the first license required.

Collaborating on crime and corruption

Neal Froneman, CEO of Sibanye Gold, who is head of the initiative’s workstream on crime, said government also committed to the National Prosecuting Authority (BPA) Amendment Bill, that will make the Investigating Directorate permanent, being tabled in parliament by the end of August.

Business Against Crime is also working closely with the NPA to ensure capacity and structure, as well as resources in the criminal justice system. He also mentioned private security companies can pool resources with government, while this workstream is also working on getting the 10111 emergency number working properly and improving the functioning of police stations.

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The moral risk of working with government in business/government initiative

Asked if the close relationship between business and government will not be a moral risk for business, CEO of BUSA Cas Coovadia said the business/government initiative is a specific move to stop the country sliding into ruin.

“We want to provide a positive narrative for the public and investors. We will also still hold government to account. If policy is dealt with, we can deal with the three issues faster.”

Lungisa said the initiative is doing its work for South Africa, and not for the governing party.

“If a new party is elected next year, we will continue to unashamedly work with the legitimate government. We will continue to speak our mind.”

Kingston said the business/government initiative can also raise money to fund transport and logistics, and crime and corruption in the same way they did for energy.

“There are major capacity constraints in the public sector. We must delineate responsibility and accountability. When we all acknowledge that the country faces massive headwinds, we must ensure that all hands are on there.”

Busi Mavuso, CEO of BLSA, said the initiative is doing what only business can do. “We must not worry about the narrative. We must get investment to address unemployment.”