THE country is in deep trouble: huge layoffs of workers will add to our devastatingly high unemployment. We have a growth rate that will not reach 1% this year, and there is no prospect of a change in policy and attitude by SA’s top leaders.
The issues at stake could not be more important: in the short term, how to manage the 2016 budget and stave off the downgrade by rating agencies to junk status; more fundamentally, the future of the economy and the nonracial democracy.
At this time of economic crisis, the government (or parts of it) are suddenly very interested in what business leaders have to say. This opportunity should not be wasted. How has business responded so far?
The public response by SA’s apex business organisation, Business Leadership SA (BLSA), after the shock removal of Nhlanhla Nene from the finance ministry in December was instructive. A more defensive, cautious, and totally-without-impact statement is hard to imagine. This approach attracted considerable criticism from business and the media, leading Peter Bruce, editor-in-chief of Business Day and the Financial Mail, to write, "In the middle of a crisis that could have shut SA down, BLSA forfeited its right to speak for anyone."
A statement by business leaders amid an unprecedented economic crisis should have spelled out the consequences of the president’s actions for all South Africans; indicated that he had single-handedly undermined one of the major achievements of democratic SA, namely the creation of a world-class treasury and global confidence in the country’s fiscal management; and stated it had undermined their confidence in how the country was being governed.
A stronger statement was contained in an open letter to the president by a group of prominent, mainly black, South Africans including a few leading business people (Reuel Khoza, immediate past chairman of Nedbank, and Bonang Mohale, chairman of Shell). They wrote that "the damage this is causing to the credibility of the country may take years or even decades to reverse … we are gravely concerned about the manner in which you are governing us."