Busa adds voice to risks for business
Breaks ranks with BBC on country’s politics
BUSINESS confederation, Business Unity South Africa (Busa) yesterday added its voice to the debate about the state of South African politics, saying the country’s political environment was holding back the effectiveness of private sector initiatives.
Busa was commenting on a letter sent to it by AngloGold Ashanti chairman, Sipho Pityana, setting out concerns “on current political and socio-economic issues in our country.
“These include apparent divisions in the ruling party, the sustained attack on the Minister of Finance and National Treasury and the associated impact on economic growth and social stability.” War of words Pityana has been outspoken in his criticism of President Jacob Zuma and has publicly called for Zuma’s resignation. He has lobbied business organisations to put pressure on Zuma. But Black Business Council (BBC) rejected Pityana’s call and, instead, said Zuma should finish his term.
This sparked a brief war of words as Pityana accused BBC of being “oblivious to the pain Zuma is inflicting on the country”.
Busa yesterday took a stance markedly different from that of BBC. “Busa acknowledges there are serious structural challenges preventing our economy from achieving its potential and getting on to a sustained, high growth path.
“We recognise that perceptions of political uncertainty, lack of policy alignment and certainty and conflicting messages from different government departments and the ruling party contribute to economic uncertainty and undermine the prospects for investment and confidence in our economy.
‘Busa is in the process of urgently seeking meetings with the top leadership in the ANC.’
“This is exacerbated by the ongoing weaknesses in our (state-owned enterprises), including with respect to governance, management and their ability to implement clearly defined mandates,” said Busa. The business community had, however, made considerable progress, through the Chief Executive Initiative, in small and medium enterprise development, investing in fragile sectors, developing a youth internship programme and avoiding a ratings downgrade.
Established in February this year, the Presidential Chief Executive Initiative is led by Finance Minister Pravin Gordhan and Telkom chairman and Busa president Jabu Mabuza.
“Members of Busa have participated directly in these initiatives as well as in the Presidential Working Groups and at (the National Economic Development and Labour Council). Busa is concerned that the political environment, and particularly its impact on the economy, is constraining the effectiveness of these private sector initiatives.
“Busa is treating these matters with appropriate gravity and is in the process of urgently seeking meetings with the top leadership in the ANC and with the Presidency and other relevant arms of government.
“We remain fully committed to strong and credible institutions, a capable National Treasury and the ability of the Minister of Finance to perform his role to ensure that the potential of our economy is fully realised in all circumstances.
“Governance, economic and policy stability and regulatory certainty will be raised by Busa as imperatives in all of its engagements.”