Busa chair shares views
‘RADICAL CHANGE’: MABUZA’S SEVEN STEPS TO SUCCESS Jabu Mabuza has given his opinion on how he believes we can turn the economy around.
Jabu Mabuza, Chairman of Business Leadership South Africa and Business Unity South Africa, chose to lament the state of the relationship between the business community and government last week, but also put forward a list of ideas that, if implemented, could improve the country’s economic prospects.
Speaking at the Gauteng policy conference of the Black Management Forum, he admitted that the political events over the last few months had “destroyed trust and confidence” in the economy.
Seven virtues
He offered seven suggestions on how the situation could be improved:
1. Strengthen policy-making. Referring specifically to business inputs to policy making, Mabuza said the quality (transparency and the high degree of public participation and accountability) of the legislative process had been steadily eroded.
He called on business to begin “strengthening its voice” by committing time and resources to participating “constructively and meaningfully” in the country’s democratic institutions.
2. Improve labour relations. Building a strong foundation of trust with labour would be a necessary precursor from which to undertake negotiations on reforms to support employment creation and business growth while protecting labour rights.
Mabuza made these comments with one eye on the fourth industrial revolution which, he said, “will mean more automation, fewer jobs and a massive shift toward a high-tech, knowledge-driven
employment market”.
3. Monopolies (black and white). “Our state-owned enterprises (SOEs) are in many cases inefficient, poorly governed, deeply indebted and unaccountable to taxpayers who have to repeatedly bail them out.”
Despite the business sector making proposals to support SOEs – something he noted that was positively received within government – there was no sign of it being taken on board.
On the private sector, he said: “The narrative of white monopoly capital – as problematic, politicised and populist as it is – has traction precisely because so many aspiring black businesses find it so difficult to compete in an economy dominated by big, long-established corporates with deep pockets and extensive business networks.”
Transformation policies could include easing regulatory barriers to entry, reviewing the availability and accessibility of government incentives, utilising special economic zones and exploring government-private sector risk sharing arrangements to enable new ventures to get off the ground. 4. Weak public governance. “Speaking out about corruption is not a political act. We need to insist on greater transparency and accountability,” he said, while urging business leaders to ensure their own dealings were “untainted”. 5. Public education. A common suggestion, but Mabuza also said education should be something that should extend well beyond school.
He also urged business owners to take a chance on people who might not have had the same opportunities to a quality education as others. 6. Support inclusive growth. “It’s change from the core. Our economy is not fit for our purposes. When our economy was growing, it did not transform.
“But now we have to transform our boards, management teams, and employees and do so while adapting to a rapidly evolving global economy.” This will not be easy. 7. You don’t need to be antiwhite to be pro-black.