Govt ‘must create business-friendly environment’
President Cyril Ramaphosa is, through his engagement with the business community, instilling confidence in the country’s economic trajectory, says Investec chief executive.
“If you compare the current mood to the mood six months ago or four months ago, we’re in a different country so I do think the South African economy will start gaining traction,” Stephen Koseff said.
“There are a lot of initiatives and commitment both from government and from business, and hopefully from labour, to create a social contract that is needed in society,” he said, referring to a CEO Initiative meeting with the president and cabinet members.
Under the auspices of the CEO Initiative, Koseff and Goldman Sach’s Colin Coleman are leading the Youth Employment Services (YES) Programme, geared at providing one million youth with internships over a three-year period. The CEO Initiative was formed by business leaders in 2016 in a bid to work with government and labour to address the country’s challenges.
According to Koseff, Ramaphosa’s engagement with business at the meeting was reminiscent of former President Nelson Mandela in that he has created a totally different mood – one which people really want to help and make a difference. “He understands what the business community is about, he understands how to talk [to them] because he was part of the business community. He was part of labour, then business and now he’s a politician,” he said.
Ramaphosa’s election as leader of the ruling party last December and president of South Africa last month has already led to a significant improvement in the outlook for the country. The president’s intervention in the controversial mining charter, changes to cabinet and plans to tackle graft and the mismanagement of state owned enterprises have thus far been well received, with RMB/ BER business confidence index rising to a three year high in the first quarter.
Koseff said Ramaphosa’s election is positive for the country but it is now up to the president and government to create a business-friendly environment, which enables investment. He said a business-friendly environment would enable the economy to grow in excess of 5%, which would lead to the creation of the right type of jobs.