‘We should have spoken out earlier’
Business leaders gave Zuma free rein for far too long — Susman
● Business leaders were too quiet for too long during the Zuma years, and it has now “absolutely become incumbent” on them “to stand up and be counted” when they see things going wrong, says outgoing Woolworths chair Simon Susman.
Woolworths announced last week that Susman, 68, would be stepping down after its 2019 AGM.
After 10 years as CEO, he became chair in 2010. In 2017, he lambasted president Jacob Zuma for his lack of leadership and for putting personal interests above those of SA. He says he should have done it sooner. South African business leaders have always taken too long to call out the government for ruinous, immoral policies and behaviour, he says.
“Going back to apartheid, business, with some brave exceptions, just acceded to what was going on.”
And it kept quiet for too long while Zuma and his supporters in the ANC ruined SA.
“We should have spoken out earlier and stronger,” he says.
It’s a lesson business cannot afford to forget.
“Where we see things that are wrong we should be taking a stand. It’s done around the world. We’re not used to doing it here, and we need to do it.”
What President Cyril Ramaphosa and his government need from business right now, however, is full-on support.
“He’s inherited an enormous mess, he’s trying to move in the right direction, and business needs to be supporting him in his efforts to do that.”
His direction might not always be clear to everyone, and there might be questions about whether he should be moving faster, but business needs to give him the benefit of the doubt.
“He’s publicly stated he wants to sort out corruption, he’s publicly stated he wants to get things back on track and sort out the state-owned enterprises, and he is taking brave steps.”
Never forget where the country might have been, says Susman. “I shudder to think where we would be if things had gone differently in December last year. So we need to be supportive of his efforts.
“We also need to be challenging. We can’t stop being challenging. But I firmly believe we’re going in the right direction.”
Expropriation without compensation? That is decidedly not the right direction, he believes. “It’s unhelpful.”
Land reform can be addressed without changing the constitution, he says.
“Of all rights in a growing nation, property rights are probably the most sacrosanct. Without property rights banks don’t lend, people don’t feel confident.”
Ramaphosa says expropriation without compensation will be implemented without damaging investment or economic growth. Not possible, says Susman. The lack of clarity about it has already damaged investment and economic growth, regardless of its actual implementation.
“If you confiscate the land of any private individual without compensation, you will shatter the confidence in property rights from the smallest property owner to the largest.
“The government should rather be granting more property rights, to people in the townships and rural areas who have no property rights.”
Susman says he is not overly concerned about the public disagreement between the president and his finance minister about whether to close SAA or keep bailing it out.
“At least it’s a debate government is now having.”
But he agrees with Tito Mboweni that closing it is a no-brainer.
“If I were finance minister I’d be saying why are we continuing to pour billions into aeroplanes that are inefficient and support wealthy passengers?”
Ramaphosa may be wrong about this but deserves our applause anyway for making such “a brilliant choice” as finance minister, he says. He agrees that making such a brilliant choice as finance minister and then shooting him down doesn’t necessarily contribute to the environment of certainty that business needs.
“But as business in SA we live with uncertainty. At least what we’re seeing now is a shift in that uncertainty from the wrong direction to the right direction.”
Isn’t this setting the presidential performance bar a bit low?
“We can’t expect miracles overnight, but we’re heading in the best direction we could hope for.”
What about the government’s determination, voiced again recently by health minister Aaron Motsoaledi, to press on with National Health Insurance (NHI) without having a clue where the money will come from?
“There are some very well-meaning members of cabinet who have a very slim understanding of economics,” says Susman.
“I’m a shopkeeper but I understand economics and I understand performance management. And the NHI doesn’t pass the business test of good economics or the business test of good performance management.”
Nor does SAA, but Ramaphosa wants to blow R21bn of taxpayers’ money on it.
At least there’s greater communication between business and the cabinet than there was before, says Susman.
SAA, NHI, expropriation without compensation — are these the policies of a government that understands how close we are to defaulting on our sovereign debt?
“There are a lot of idealists in the cabinet but I see a willingness to get us out of trouble,” Susman says.
Instead of making excuses for the government, shouldn’t business be calling it out on stuff like this?
“We are,” says Susman, who is a director of Business Leadership SA. “There are a lot of discussions going on behind closed doors.” The topic is how to grow the economy. Ramaphosa is someone who “really does understand how an economy should run”, he says.
It runs, says Susman, when the government puts small businesses at the top of its priority list. But this is not happening.
“The restraints in labour legislation, licensing requirements and general red tape are deeply discouraging of young entrepreneurs and start-up businesses,” says Susman.
Countless small businesses “come foul of our labour legislation and have to shut down”.
The fact is, the government has still not prioritised economic growth and job creation “but, given the political realities they face currently, I think they’re doing their best”, he says.
After retiring as chair, Susman will be “honorary president” of Woolworths and help it play “a broader role in society”, he says.
The government should rather be granting more property rights, to people in the townships and rural areas who have none