Business supports transformation

BIG business in KwaZulu-Natal has pledged to support the call for radical economic transformation, but has opposed any plans to nationalise the economy.

The ANC Youth League and KwaZulu-Natal Economic Development MEC Sihle Zikalala have placed nationalisation of the banks, mines and land at the centre of their call for radical economic transformation.

Greg Tarrant, head of PricewaterhouseCoopers KwaZulu-Natal tax division, said the government should use tax, which business contributed to the national fiscus, to implement radical economic transformation.

Tarrant and KwaZulu-Natal Premier Willies Mchunu were addressing a Durban Chamber of Commerce breakfast, which was debating the State of the Nation address, national Budget speech and the state of KwaZulu-Natal economy.

Speaking to Independent Media in Durban yesterday, Tarrant said: “I think privatisation is a better way to go than nationalisation.

“I say that because I look at the state-owned companies performance. If you look at the private sector in South Africa they are by far the best performers and better-managed institutions.”

Tarrant said business was “very excited” when it heard Finance Minister Pravin Gordhan mention the word “transformation” 54 times and the phrase “radical economic transformation” four times.

“I think what Pravin Gordhan said in his Budget speech is understood and recognised by business, which is that in order to achieve a higher structural growth rate in South Africa, transformation is imperative.”

He said through supporting 17 million pension grant beneficiaries, business was “participating in radical economic transformation”.

Tarrant said business also participated in radical economic transformation through corporate social investment and through procurement.

“There is an excitement among the business community on the call for transformation, but it is a challenge of meeting the transformation requirement, which has generated fear in business.

“They accept, understand and embrace it (transformation). It is just urgency around it and the need to meet the requirements that create the anxiety in business.”

Mchunu said the government and business should be united in a common vision of transforming the country.

“Let’s find ways and means of working together in correcting the anomalies of our society.

“If we don’t do it together we will all fall together. It is better to sacrifice together than to fall together simply because we are refusing to work together for the attainment of a prosperous future.”

Mchunu said the private sector can’t continue to pretend to be ignorant about the legacy of apartheid.

“These people were left outside. They were deprived of participating in the governing of their lives. It is a reality and a fact.”

Durban Chamber of Commerce and Industry chief executive officer Dumile Cele said business should understand the importance of developing those who are poor.

“You cannot have one group developing and becoming an island of prosperity within the sprawl of poverty.”

She said the government and business were “passing each other like ships in the night” when it came to the vision of transformation.

“Small business is excited about radical economic transformation. However, with big business, we don’t seem to find each other.”