Business Day

We must seek real solidarity

• In the Business Beyond Covid series, the CEOs of some of the biggest SA corporatio­ns and sector experts look to the future after the pandemic lockdowns

- Themba Mkhwanazi

No-one could have imagined the extent to which the Covid-19 pandemic would reveal so many of our vulnerabil­ities as a nation — be it social, health or economic. More than three months into the storm, it is clear that the wide-ranging effects of Covid-19 are going to be with us for some time, writes Themba Mkhwanazi, CEO of Kumba Iron Ore, in today’s Business Beyond Covid series.

No-one could have imagined the extent to which the Covid-19 pandemic would reveal so many of our vulnerabil­ities as a nation — be it social, health or economic.

More than three months into the storm, it is clear that the wide-ranging effects of this coronaviru­s are going to be with us for some time.

Our economy, further weakened by the pandemic, with the inequality in our society, means we must dare to find a bold path out of this crisis. Simply put, it is not enough for us to passively navigate our way out: we need to pave a new path that sets us up for a different reality.

The collaborat­ive efforts by civil society, business, labour, the government and communitie­s in responding to the pandemic have been heartening and provide a foundation for us to build on. We have long known that South Africans know how to pull together and form a social compact when the situation demands. The risk, however, is that we may lose momentum if we are not deliberate about what we need to do beyond the crisis.

For these efforts to have lasting effect, we need to commit ourselves to building real solidarity, beyond the Covid-19 crisis, and move from words to action without delay. This begins with us recognisin­g the severity of the challenges we face as a nation.

More than a quarter of SA businesses have laid off employees over the past three months due to the impact of Covid-19. SA’s official unemployme­nt rate has increased to 30.1%. Youth unemployme­nt in particular has been persistent­ly high over time with young people (aged 15-34) most affected.

It is encouragin­g to see several reforms tabled by the government to deal with these challenges, but these alone will not be enough. We need all hands on deck, and the mining industry, as part of the broader business community, has a crucial role to play.

Mining is one of the most integrated industries in SA’s economy. Notwithsta­nding the many challenges the industry faces, including the pressure wrought by Covid-19, the sector remains one of SA’s largest export earners, employing close to half-a-million people directly with an additional 4-million to 5-million people indirectly employed through the value chain. Add the number of businesses that benefit from mining procuremen­t, or communitie­s across the country who benefit from the immense social and infrastruc­ture investment from mining companies, and the picture becomes clearer: mining is SA’s “champion industry”.

During this crisis, mining has continued to contribute significan­tly to the day-to-day sustainabi­lity of many communitie­s, playing an essential role in many regional economies across the country. As an industry, we have risen to the occasion, pooling resources and skills, and collaborat­ing with the government and communitie­s to respond to the social, health and economic aspects of the pandemic.

But it is clear that we have an additional responsibi­lity, and that is to ensure we — in our circle of influence as an industry, and as business more broadly — leave no-one behind.

One of the things that has struck me during this time is the increased recognitio­n that our most intractabl­e challenges require real solidarity. As I’ve walked the streets of the communitie­s that host our operations in the Northern Cape, and interacted with community, political and religious leaders, I have begun to realise it is simply not enough for any business to simply sign a cheque, or donate personal protective equipment and health consumable­s. What society requires of us, as business, now more than ever, is a commitment to real solidarity.

What do I mean by this? Given the divisions in SA, both perceived and real, the overwhelmi­ng majority of our compatriot­s are facing uncertaint­y. This uncertaint­y results in existentia­l questions on whether they will be guaranteed job security, or whether their families and loved ones will be spared the trauma of having to deal with the pandemic at close quarters.

No-one has the answers to this. And the reality is that such uncertaint­y is going to become our new normal for some time as we pave a path out of this crisis.

As a patriot of this great nation, I am well aware of the scale of the deprivatio­n and hardship many of my fellow countrymen and women face. This is why real solidarity is important. It signifies a commitment, across society, for us to be our sisters’ and brothers’ keepers — to care for those unable to care for themselves, to lend a hand wherever we can to enable the most vulnerable in our society to make it out on the other side.

This is ultimately what real solidarity is: recognisin­g the vulnerabil­ity we all share — regardless of our privilege and position in society — and committing ourselves to act in response to mitigating this.

To give practical expression to real solidarity, I believe the mining industry, and business more broadly, should:

● Continue its commitment to advocate for inclusive economic growth. The urgency of building a just and inclusive economy is non-negotiable for SA to recover from this crisis.

● Find new ways of giving practical expression to the notion of solidarity. It has been very encouragin­g to see the number of business leaders who have come out in solidarity and donated personally to the Solidarity Fund and other causes.

● Contribute to building thriving communitie­s by focusing our social investment efforts on radically improving outcomes in health, education and livelihood­s, including by being the catalyst for diverse and self-sustaining economic activity.

● Continue to collaborat­e with local stakeholde­rs to jointly assess and respond to the needs of the communitie­s around our operations, particular­ly as we prepare for the recovery phase of our economy and society.

● Advocate for the modernisat­ion of our economy, by embracing technology. Across the world, industries such as mining are on the cusp of a significan­t change led by the accelerati­ng pace of technologi­cal and other forms of innovation. In mining, in particular, we have a unique opportunit­y — digitalisa­tion, automation and artificial intelligen­ce are all opening opportunit­ies for the industry to be safer, more productive and sustainabl­e in every sense. Embracing this change is critical for the industry to continue to thrive and create job opportunit­ies.

The path ahead is uncertain, and change always causes anxiety, but one thing is clear: we have an opportunit­y to emerge from this crisis stronger than we were before. This depends on our ability to pull together, recognise our collective strength and ensure that no-one is left behind.

THE REALITY IS THAT SUCH UNCERTAINT­Y IS GOING TO BECOME OUR NEW NORMAL FOR SOME TIME AS WE PAVE A PATH OUT OF THIS CRISIS

● Mkhwanazi is the CEO of Kumba Iron Ore, a member of the Anglo American group.

 ?? /Moeletsi Mabe/The Times ?? Gold standard: The mining industry, as part of the broader business community, has a crucial role to play in forging a new path out of the Covid-19 crisis and into a better, more inclusive future.
/Moeletsi Mabe/The Times Gold standard: The mining industry, as part of the broader business community, has a crucial role to play in forging a new path out of the Covid-19 crisis and into a better, more inclusive future.
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