Busa chief extends olive branch

Business Unity South Africa (Busa) has not suspended its firm vision for a unified and fully representative organisation that contributes to a vibrant, transforming and growing South African economy.

Busa’s chief executive officer Nomaxabiso Majokweni foresees a very constructive engagement with the Black Business Council (BBC), if the latter decides to join with Busa to form a unified black business voice.

In a wide-ranging interview with Black Business Quarterly, she revealed that the organisation had already spoken to President Jacob Zuma, and that it had recommitted itself to the need for business to unite behind addressing South Africa’s economic challenges.

Furthermore, Majokweni spoke about the embarrassment the Busa leadership suffered recently when it was ejected from the Black Business Summit, where President Zuma delivered the keynote address in September this year.

The CEO claimed that the matter of the Black Management Forum’s resignation from Busa had been overtaken by current constructive engagements that Busa had begun with the BBC. These engagements are far more comprehensive, in that they cover a broader array of issues which, if effectively dealt with, stand to make a bigger, more positive impact on the South African economy.

The BMF is merely one of 14 black business organisations that form part of the BBC.

Responding to BMF critique

The BMF fired a broadside at Busa, saying that its structure was “fundamentally flawed, with the voice of black business permanently outnumbered and suppressed.”

Asked to comment, Majokweni said the Busa structure and constitution was one of the issues about which the BBC and Busa would engage in discussions. “Like any other organisation, Busa is not immune to the evolution that is often brought about by changing circumstances, a rethink on issues that were perhaps not factored into the original thinking, and generally the dynamic nature of the environment organisations operate in.

“These undesirable consequences of being outnumbered are also exacerbated by lack of suboptimal participation in structures and processes that lead to Busa positions on issues.”

The BBC raised criticism that individual black organisations have tried, unsuccessfully, to introduce reforms in the manner in which Busa is constituted and functions.

In her reply, Majokweni said that the only documented evidence of these allegations she had, was contained in the memorandum substantiating reasons for the BMF’s resignation from Busa. Besides this, the other acknowledgment of some of the structural shortfalls was contained in a Busa strategy review process that began in 2010.

“To me, this can only mean that Busa had already begun a process of internal review and assessment of the organisation’s structural effectiveness as well as its own business strategy,” she stated.

“The matters under discussion with the BBC are broader and more all-encompassing than the mere organisational constitution
and structure.

“To me, this approach stands to achieve much more than one focused only on the organisation’s structure. The outcome of our current engagement with the BBC stands to be more far-reaching and impactful on South Africa’s economy,” Majokweni added.

Black Business Summit

Majokweni and Busa president Futhi Mtoba were unceremoniously kicked out of the Black Business Summit in September.

The Busa CEO expressed her view on the matter, saying that among the reasons given was that Busa was going to be the subject of discussions at the summit, so it would not have been ideal to have its representatives in the room when these discussions were taking place.

“Of course, we were disappointed, as it was our understanding that the session we were to attend was an open one, at which President Zuma was to give his keynote address – to which even media was invited,” she noted.

“However, as Busa leadership, our resolve remains the focus on ensuring business’ contribution to addressing the economic challenges of this country. Nothing will take our eyes off that.

“Being asked to leave a conference is a small side issue in the scheme of achieving our broader objectives,” Majokweni added.

Asked if black businesses are possibly not acknowledging that businesses, nationally, speak in a non-racial and democratic voice, she said the current black and white business debate is a microcosm of a similar debate in South Africa. It is not unique to business.

“Obviously, there are historical overlaps between small, black businesses and big, white businesses. Yet, there is a sense that we need to start looking at business challenges and issues as being concerned with big and small businesses, rather than racial divisions,” she added.

“We have legislation in this country that we have yet to fully implement, which addresses racial and other historical imbalances.

“However, through business organisations such as Busa, we need to maximise business contribution to economic transformation and address issues that confront business – small and big,” Majokweni emphasised.

Of mentors, convention centres and attachés

Her mantra rests on ‘raising the bar’. It is a principle she learnt from her mother, who inspired her constantly to redefine success and believe that nothing was impossible. Her mother also reminded her to laugh and be happy while constantly pursuing excellence.

“I have a number of other leaders who have helped shape my leadership view and style,” Majokweni said. “Generally, rural women I grew up around taught me the art of leading naturally with sharp insight, persuasively and living ahead of your time. What they manage to achieve without much is amazing.”

She said the highlight of her stint as CEO of the Sandton Convention Centre was leaving a legacy that proved transformation is, in fact, a business imperative that ensures business sustainability, and not a side issue or nuisance to business.

Majokweni was able to grow the business and create shareholder value, while driving transformation and black economic empowerment (BEE) through preferential procurement, employment equity, skills development, enterprise development and social responsibility programmes.

In fact, the Sandton Convention Centre owes its continued commercial sustainability both to its market position as well as its transformation policies.

Majokweni was a commercial attaché for the Department of Trade and Industry in Hong Kong and Washington. Her work involved increasing South African exports to the host country, as well as recruiting foreign direct investment in South Africa.

This was a role that prepared her for her current position at Busa, as she was involved in articulating business positions on relevant government economic policies. This was aimed at ensuring the climate created by these policies and legislation was competitive and conducive to business growth and development.

“Busa is a business organisation. The responsibility of promoting South Africa as an investment destination, as well as promoting South African value-added exports, meant directly interfacing with business,” Majokweni said. “I am, therefore, acutely aware of what drives business investment decisions, competitiveness factors, industry sector features and drivers, and business needs in general.”

Vision

Her vision going forward is that of a unified and fully representative Busa that contributes to a vibrant, transforming and growing South African economy.

The organisation aims to ensure organised business plays a leading and constructive role in the formulation and delivery of the country’s inclusive economic growth, development and transformation goals.

Busa must continue the sterling work it has been doing on policy advocacy, and being the voice of business at national social dialogue platforms such as the National Economic Development and Labour Council (Nedlac), Majokweni added.

The New Growth Path, the Industry Policy Action Plan and broad-based BEE, among others, all constitute a good base from which Busa will escalate its work on economic empowerment.

Too soon to panic

Majokweni remains upbeat about the future of black business and of business in general in the Rainbow Nation. The recent apparent rift is no reason for alarm, she advised.

“One of the key reasons black business decided to ‘step aside’ and suspend their membership from Busa, was to give themselves space to do deep introspection, consolidate and come out with a common black business vision regarding what black business should stand for, promote and contribute toward,” she added.

Should the BBC rejoin Busa, Majokweni foresaw a very constructive engagement with a united black business voice going forward.

Unemployment issues

United business in South Africa has work to do, she said at a recent Nedlac conference.

The recent Quarterly Labour Force Survey by Statistics South Africa has not painted a pretty picture. It indicated that while the economy has created 64 000 more jobs in the 12 months leading up to the end of the second quarter of 2011, unemployment surged to 25.7%.

The country may have created 152 000 more jobs than the low point it experienced in the third quarter of 2010, but it is still some way off the 500 000 jobs that South Africa requires to create per annum, if the nation is to achieve its overarching national goal of creating five million jobs in the decade up to 2020.

The growth of any economy requires investment in that economy; but given the dynamic nature of markets, that there will be investment in any given economy can never be regarded as a fait accompli.

Rather, investment is enticed by competitiveness, which is predicated on certainty, predictability and efficiency.

Distressing signs

“And let us be under no illusions,” cautioned Majokweni. “We need to be asking ourselves serious questions about the competitiveness of our economy: if not for how it fares in international indexes measuring competitiveness and efficiency, then for the very concerning fact that FDI [foreign direct investment] in South Africa declined by 70% last year – for the fact, in other words, that investors are voting with their feet.

“Against this backdrop of declining foreign investment, let those of us who feel the need to question the link between investment and economic growth look no further than the recently released growth statistics for the second quarter of 2011.

“At an annualised rate of 1.3% of GDP [gross domestic product], it disappointed even the most conservative spectators,” she said.

Building blocks for boosting growth

South Africa needs strong social dialogue to focus all stakeholders on encouraging growth in employment-creation activities.

Furthermore, systematic changes are required to mobilise domestic investment around activities that can create sustainable employment.

The most basic building blocks for boosting growth and narrowing the wealth gap require that the government is coherent, effective, transparent and accountable on economic policy implementation.

South Africa must further ensure there is a macro-economic policy in place, which supports growth and employment singlemindedly, Majokweni said.

The country must ultimately focus on ensuring the basics are in place to make the most of its human resource endowment, she concluded.

Fanie Heyns