Business coalition meets government to continue joint collaboration

CEOs from over 150 of South Africa’s leading corporations who signed a pledge a year ago underpinning their collective belief in South Africa, and their determination to assist in realising its potential held a meeting with President Cyril Ramaphosa and his Cabinet members for the first time since the GNU was formed.

The business leaders that included Discovery boss Adrian Gore, Business Leadership SA CEO Busisiwe Mavuso, and Business for SA steering committee chairperson Martin Kingston committed to continue providing government with skills and financial resources to address impediments to economic growth that included ending electricity challenges, open up road, rail and port logistics and assist in curtailing the spiraling crime in the country.

The business sector’s backing is crucial, as it signals confidence in the reforms and emphasizes the need for collaboration between the government and private sector. By addressing the root causes of economic inefficiency, poverty, and inequality, the reform agenda holds promise for long-term growth and stability in South Africa.

The CEO business initiative pledge states: “As South African business leaders, we firmly believe in the immense potential of our country. We are committed to building it and have come together to address the current challenges with the aim of achieving sustainable, inclusive economic growth. Through strategic partnerships and focused interventions, we have the power to make a significant and positive impact on our nation, creating hope for all South Africans. We are resolutely committed to being a force for good”.

The scale, diversity and depth of the companies and CEOs behind this pledge is unprecedented, with an expected increase in the number of CEOs participating. The companies represented by these CEOs operate across all sectors of the South African economy, with the values of the listed entities exceeding R11 trillion, employing more than 1.2 million people. All sectors of society acknowledge and experience the impact of the many crises currently faced in South Africa. These include low economic growth, collapsing infrastructure, rampant crime and corruption, and unacceptably high levels of inequality and unemployment.

The CEOs who have signed this pledge are reaffirming their belief in the country’s potential, and their dedication and determination to reversing the current trajectory. Business is committed to using its collective resources and expertise to partner, assist, build and bolster initiatives aimed at rapidly turning the flywheel and changing our country’s direction.

This is being done through organised business, including BUSA, B4SA, Business Leadership South Africa. The Resource Mobilisation Fund (RMF), which recently raised R100 million to contribute expertise to the government via the National Energy Crisis Committee is an example of the initiatives to support government.

Business’s partnership with government is a primary example of this type of collaborative effort, which is focused on addressing key fundamentals. Business Unity South Africa (BUSA), through its structure Business for South Africa (B4SA), is supporting government to implement key priority interventions in the areas of Energy, Transport and Logistics, and Crime and Corruption, together with government counterparties.  The intention is to bring resources and capacity to bear to address the socioeconomic crises facing our country.

This partnership between the GNU and South Africa’s reform agenda under the GNU (Government of National Unity) focuses on several key areas to address the country’s socio-economic challenges. Here are the main aspects of the reform agenda that businesses are aligning with:

1. Structural Economic Reforms

Energy Sector Reform: The country’s ongoing energy crisis, largely due to the inefficiencies and mismanagement of state-owned Eskom, has led to chronic power shortages. The GNU reform agenda focuses on liberalizing the energy sector, allowing for more private sector participation in renewable energy projects. Business support for this is high, as reliable energy is critical for industrial productivity and economic growth.
Infrastructure Development: Improving infrastructure, including transport networks, telecommunications, and ports, is a priority. Businesses are supporting these reforms by investing in public-private partnerships (PPPs), helping to modernize and expand infrastructure that supports both domestic trade and exports.

2. Labour Market Reform

Job Creation and Skills Development: With unemployment rates at historic highs, particularly among youth, businesses are aligning with the government’s agenda to create jobs and develop critical skills through education and vocational training programs. Reforms that make it easier to hire and train workers are being supported by major industries, especially in sectors like mining, manufacturing, and technology.
Labour Regulation Simplification: There is a focus on reducing the regulatory burden in hiring and labour relations. The business community advocates for labour law reforms that make it easier to navigate employment conditions and enhance flexibility for businesses while protecting workers’ rights.

3. Regulatory and Policy Reforms

Ease of Doing Business: The GNU’s focus includes streamlining bureaucratic processes that have historically stifled investment and business operations. The reform agenda seeks to simplify the licensing, tax, and regulatory frameworks, making it easier for businesses to invest, expand, and operate efficiently in the country.
Corruption and Governance: Businesses have welcomed reforms that target corruption, especially within state-owned enterprises and public procurement processes. Enhanced transparency and anti-corruption measures are seen as critical to restoring investor confidence. Many corporations are collaborating with the government to establish stronger governance frameworks and ethical business practices.

4. Promoting Investment

Incentives for Local and Foreign Investment: The government’s reform agenda includes creating a more attractive environment for both domestic and foreign investors. This involves improving investor protection, ensuring policy stability, and offering incentives such as tax breaks for key industries. Businesses are involved in dialogues with the government to ensure these policies are effective in stimulating growth.
Industrialization and Export Promotion: The reforms also focus on boosting South Africa’s manufacturing base and promoting exports. Key industries, such as automotive, agriculture, and minerals, have received strong backing from the private sector, which is investing in new technologies and processes to increase productivity and global competitiveness.

5. Social Compacts and Collaboration

Public-Private Partnerships (PPPs): Businesses are engaging in PPPs as a way to directly contribute to the country’s development, particularly in areas like infrastructure, education, and health services. These partnerships help align the interests of the public and private sectors to deliver services more efficiently.
Social Welfare and Inequality: The GNU reforms also aim to address inequality by promoting inclusive growth, such as empowering small and medium-sized enterprises (SMEs) and previously disadvantaged groups. Businesses are supporting these reforms by committing to supplier development programs and corporate social responsibility (CSR) initiatives that foster local economic development.

6. Environmental and Sustainability Reforms

Green Economy Transition: There is growing support for the transition to a green economy. Reforms aimed at promoting sustainable energy, reducing carbon emissions, and managing natural resources are being backed by businesses, especially in the mining and energy sectors. Many companies are making investments in renewable energy and sustainable business practices to align with global environmental standards.

7. Land Reform and Agrarian Policy

Land Redistribution and Agricultural Development: Businesses in the agriculture sector are keenly interested in land reform policies. The GNU’s approach to land redistribution seeks to address historical inequalities while ensuring agricultural productivity and food security. Private-sector partnerships with emerging farmers are being encouraged to create a sustainable model of land ownership and agricultural development.
The collaboration between the government and businesses is essential for ensuring the success of these reforms. By addressing the root causes of economic inefficiency, poverty, and inequality, the reform agenda holds promise for long-term growth and stability in South Africa.