SACCI Convention

Andrew Layman:  PCB CEO

I spent Thursday and Friday of last week at the annual SACCI AGM and Convention.   The election of office-bearers brought KZN business people to the fore.   While Chose Choeu, a senior executive at Eskom, was elected as the President for a second term, his supporting officers are to be Clive Manci (Deputy President) and Themba Ngcobo (a Past President of the Durban Chamber) and Vusi Khumalo of Transnet Port Terminals as Vice Presidents.    We were also thrilled that Zinhle Sokhela, the Past President of the PCB, earned the award as Businesswoman of the Year.   It was not a place for faint-hearted exporters: Colin Coleman of Goldman Sachs predicted a further strengthening of the Rand to R6,50 or even stronger.  One wonders if there is anything to be done about this, despite the pleadings of manufacturers.   Perhaps the Reserve Bank could be a good deal bolder in its approach to interest rates considering that they, being so much higher than in other countries in the world, seem to be the main attraction for foreigners with money to invest in shares.  Expert analysis is that the popularity of emerging economies reflects the moribund nature of the old and tired economies.   Riaan de lange and Reyno Seymore in their essay in Raymond Parson’s book Zumanomics warn that “a depreciating currency should not be seen as a source of comparative advantage”, implying that there are other matters that require attention if South African industry is to be globally competitive.   Despite the constraints on exporters, there is some merit in the country being perceived as one of the attractive emerging markets which are commanding popularity at present.

Among the statements made at the Convention that did stimulate my thinking was the view that Business seemed to engage in “strategic complacency” as far as government policy and strategy are concerned.   This presenter was not the only one to call for more vigorous engagement with government on the part of Business.    It struck me that, notwithstanding the plethora of national business organizations claiming to be voices of business, the influence of the business community is moderate at best.   I thought “strategic complacency” was an apt way of describing the rather meek attitude of Business in the face of government policy formulation.   I am reminded that it was not so long ago that Trevor Manuel accused Business of a lack of courage in dealing with Labour.  I happen to agree with this.   The concessions made by corporates when presented with union demands have often exceeded the levels envisaged by the law.   Many companies have settled on a forty-hour week, for example, even though the maximum permitted by the law is forty-five.    A large organization once agreed to providing buses over weekends for people to attend funerals of those who were known to members of the staff.   This kind of over-accommodating agreement has the effect of putting all Business under pressure, for once the unions have achieved something in one instance, it is likely to become the standard demand elsewhere.

As far as government is concerned, its reluctance to accept criticism has been evident for years.   All too often, criticism is construed to have a racist origin, or, perhaps, to reflect allegiance to the political opposition.   Many business leaders are intimidated by these constructions and they feel disinclined to give offence by speaking their minds.    It is more strategic, therefore, to confine one’s criticism to fora of like-minded people rather than come out openly with strong views.    There is some introspection in this view.   I have sometimes wrestled with the notion that broad alignment to government policy does not mean that one has to agree with every specific thing.    Sometimes we harbour our critical views, biting them back with mounting frustration, until they emerge in emotional terms which are unnecessarily offensive and fall on deaf ears.   Open dialogue with government is what is required.   It is not easy to secure such dialogue, unfortunately, and perhaps the insistence on consultation, earlier rather than later, should be our prime objective.   To make such consultation more constructive, Business must deal with its internal fragmentation and make itself more accessible.   If Business plays its part correctly it may find that government is more willing to listen, and hear, than we thought.

Leave a Comment