How seriously should organised business take the president’s Sona?

BLSA CEO offers her musings on the topic …
Image: Supplied

How seriously should organised business take the president’s State of the Nation (Sona) address last week? That is a question I have been pondering.

As Business Leadership South Africa (BLSA) said at the time, the speech was a missed opportunity for President Cyril Ramaphosa to have demonstrated real progress since the last Sona, on economic reforms as well on the planned large-scale infrastructure rollout. But there were also several areas in which I’m hopeful of constructive progress.

The president spent some time on the need to reconstruct a capable state. That is the greatest loss we have experienced since 2008. Businesses can tell many stories of the frustrations they encounter in dealing with the public sector, particularly at municipal level. Many have had to shift operations, giving up hope that municipalities can ever deliver basic services like water and refuse removal. The president made an important point that a capable state is not just about the quality of public servants, but also about how citizens are empowered to participate.

Business is obviously an important constituent and provides livelihoods to millions of our citizens. We understand that business depends deeply on a state that can function optimally. That is why BLSA and other business organisations have dedicated significant focus and resources to supporting government.

We fund several senior retired engineers and other specialists to work in government departments to help solve the technical skills shortages.

Through Business Against Crime SA we support the criminal justice system in several areas. We also commission research to develop evidence to support good policy making. We also, it must be said, contribute to accountability through ensuring a business perspective is heard on matters of national import.

That said, the president clearly had civil society rather than business in mind on the subject of participating in building a capable state. There is certainly excellent work done by civil society organisations, both in holding government to account and in supporting our citizens who cannot find support elsewhere. I would be strongly encouraged were the government to provide such organisations the appropriate avenues to work with the public sector to ensure its capacity.

A capable state should be able to deliver needed services across the range. It should be able to deliver housing and essential services to all citizens. But it should also be able to provide the services that business needs to be able to thrive and grow in the country.

The president did not mention business and the role it could play in ensuring we have a capable state, but I believe there are many important ways that business could ensure capability.

Of course, I am well aware that business has its own interests and that one must be wary of businesses having undue influence on government. The support that organised business aims to provide must be done appropriately. Business should not use its resources to extract beneficial treatment. Instead business must ensure it is aligned with the democratic mandate that the government has and ensure it is capable to deliver to that mandate, rather than the particular desires of business. In the support we currently do provide, the government is always the policy maker and decision maker. We only aim to fill the capacity constraints in the public sector in the interests of all South Africans.

But there were very encouraging indications that the president has a clear view on another area needed for business to thrive: removing red tape. The Presidency has long had a dedicated unit to improve the ease of doing business. I don’t think there has been much progress – running a business in South Africa is still a hard thing to do, largely because of the complexity of navigating the many rules and regulations as well as the cumbersome mechanisms available to engage with government about them.

There is much that can be done to simplify the processes and reduce the cost of complying with regulation.

The appointment of Sipho Nkosi, the former CEO of Exxaro, to work with the presidency to cut red tape is encouraging.

[Nkosi] has exactly the right kind of experience – the perspective of someone who has fought to build a business with a closeup view of how harmful red tape can be.

There were many other points made in the speech about new infrastructure projects and sector masterplans. I feel these are too often spoken about and too seldom done. These are the areas that the president needs to talk delivery and not plans, particularly at this stage of his administration.

One other area the president touched on is ending [the] state of disaster, subject to legislative amendments. This will allow for the pandemic to be fought through normal legislative instruments.

This may still take some time – legislative amendments can certainly take inordinately long. I hope when it is done there is clear legislative support for companies to mandate vaccination among employees. The president also said “nearly all restrictions on economic and social activity have already been lifted” but as I’ve pointed out, most recently [a week] ago in this letter, business in fact continues to be constrained by the restrictions which are having a particularly detrimental impact on employment.

Read: ‘South Africa is becoming an outlier in workplace regulations’

Those restrictions should be dealt with while we wait for the right legislative reform.

Busi Mavuso is CEO of BLSA.

COMMENTS   4

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

It is mindboggling to see how long intelligent people prefer to live in total denial. When we discuss the Sona and all the other instances of ANC verbal diarrhea, the findings of the Zondo Commission, and all the inconsequential findings of countless other commissions, we are actually expecting a hyena to turn into a friendly Border Collie.

They are career politicians and collectivists on top of that. Their statements are perfectly neutral and anybody can read into it what they want. The conclusions we draw from their statements say a lot about us, and say absolutely nothing about what they are going to do. We hear what we want to hear. We have been pulling the wool over our own eyes for 27 years now.

If we want to form a rational opinion on what we can expect from Luthuli House, we should simply study the direction of the prevailing trend. After a period of 27 years, this trend has built inertia and has gained momentum. The fact that the captain convenes a posh banquet to tell the passengers that they will arrive safely at their destination, does not change the fact that the ship is heading for the rocks at this very moment.

Respectfully, only some of us: “..have been pulling the wool over our own eyes for 27 years now.”

I for one never expected any outcome other than slightly better than Zimbabwe. Yep … people hear and believe what they want to hear and believe.

The energy involved in analytical rational thinking is a rare commodity in Africa. About as rare as Tanzanite.

To answer the question posed — How seriously can business take a total joke ???

The president at this stage is fulfilling the role of a good salesman in the marketing department of a massive ponzi scheme.

His only job is to do everything he can to maintain confidence and perpetuate the scheme for as long as possible – he and his ruling elite are not fools, they know *their* window of opportunity is rapidly closing.

Sensei analogy above is an excellent summary of where we are.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: