/ 17 February 2004

‘No change without growth’

You were recently at the World Economic Forum [in Davos, Switzerland]. Do you think this gathering of the world’s rich and powerful can change the world?

I think they can and do change the world. Whether it is for the better, I would say probably not.

Big business was criticised for its failure to contribute to Millennium Development Goals. What is your view of South African business’s performance on corporate social investment?

Social investment is a function of the bottom line. A business exists primarily to operate as a going concern — insofar as social investments benefit that goal, business will be interested.

Once it is neutral or negative to that goal, businesses will not be interested. In South Africa, because of our history, businesses are paying a premium for peace, which is why they have a greater commitment to social investment than in other countries.

Are you a politician or a businessman?

I am a businessman, I was raised as one and will die one. I have no political ambitions.

What are you doing on the business front at present?

Throughout my time with the Black Management Forum, until last December, I ran my hu-man resource consultancy firm, Bhekokuhle Consulting. I am now part of an investor consortium that is exploring a few opportunities. I am afraid that is all I can say at this stage.

Which sectors are you looking to invest in?

One of our partners believes we should invest where “we can make good money ethically”; another believes we should go into mining and financial services. I’ve developed a fascination with property over the past few years, so I think we will be big players there.

What basis is there for the unity of black and white business?

Busa’s commitment is to two things: economic growth and economic transformation. We see our role as partners in implementing the Brenthurst initiative.

Unity is brought about by the realisation that growth and empowerment can’t happen without each other.

But will the impatience of black business for change, and the perceived intransigence of the white business establishment, not cause cracks?

A split is highly improbable.

What then, do you see as the greatest threat to unity?

The greatest threat is poor economic growth and poor black economic empowerment (BEE) performance, and by that I mean if BEE is not broad-based. Another threat is lack of funding. Business South Africa (BSA) failed because members did not commit funds.

In what way did BSA fail?

[Busa] is the third attempt at business unity — the first was the formation of BSA in 1994. It allowed itself to be overshadowed by political transformation and later, organisations like the South African Chamber of Business.

The second attempt by Kevin Wakeford was a good idea, but it attracted too much publicity without having proper consultation and a plan in place.

And the Black Business Council (BBC) — did it not have failures of its own?

The BBC engaged with the government to help put employ-ment equity and empowerment on the national agenda. For instance, [Reserve Bank Governor] Tito Mboweni as Labour Minister was dead against an affirmative action Act, but through engagements throughout 1995, we ended up having the Employment Equity Act. In the end the BBC were advocates and lobbyists, not doers. It could have presented better-researched positions, but did not have the resources.

Why is unity going to work this time?

The thoroughness of the consultation process [involved in informing Busa]. Then there is the readiness of all parties — black and white business and the government — for unity. Finally, leadership. Patrice Motsepe [president of the BBC] and Attie du Plessis [president of BSA] complement each other. [Motsepe] is a visionary, whereas [Du Plessis] is good on detail. [Motsepe] delivers political credibility, [Du Plessis] delivers business credibility.

How long will it be before we can talk about business in South Africa and look past racial “unity”?

I would say that would be when black people own 30% of the economy after paying off the debt used to acquire that stake. The Brenthurst initiative puts a 15-year time-frame to the process, and I would agree with that.

What will the unified voice be calling for?

In helping with the implementation of the transformation policies, we will engage the government as a non-racist, balanced and effective voice.

We also have Zimbabwe as an example of what can happen if there is no empowerment. I blame President Robert Mugabe, labour and business for their unwillingness to share, and the voters for making the same mistake many times.

What is Busa’s position on [President Thabo Mbeki’s] “constructive engagement” with Mugabe?

[Busa] is only six weeks old and has not formulated a position on this.