Speech by ANC Secretary General Gwede Mantashe at the National Business Initiative (NBI)

11 November 2008

Business leadership for a sustainable future: South Africa rising to the occasion.

Leadership is about a clear vision based on concise, consistent and tested policies. The future is about confidence that a solid foundation has been built, which will provide a solid foundation for ongoing progress. Political leadership is central to South Africa rising to the challenges of the day. Business leadership must be part of the national leadership and contribute to the formulation of the national programme and defining the complimentary role that the various sectors of society can play in the realisation of the national vision.

As high unemployment, high levels of poverty and growing inequality remain the pre-eminent problems facing society, the set objective of cutting unemployment and poverty by half by 2014 remains an ideal worth striving for. 6% economic growth is the minimum growth required to come close to achieving the set objectives. The average 4,5% growth since 2004 has set the solid foundation. With the current global financial crisis this growth trend is likely to slow down to about 4% in the 2008-2009 financial year. The resilience of the South African financial sector in the face of the crisis is a function of good business leadership and good policies, particularly the retention of some exchange controls in the face of the demand to remove all the exchange controls by most of our economists. What this proves is that policy options should talk to the development needs of our economy rather than dogmatically follow what appears to be the flavour of the day.

Since Polokwane the ANC leadership has been assuring the investor and business community that there will be no major change in economic policies of the ANC. We talked of continuity and change, a dialectical concept about building on what is working and changing what is not working. Let me highlight what can be seen as changes, more in emphasis than in content:-

• There is more emphasis on the creation and retention of decent work as a formula for sharing the benefits of economic growth. The expectation is that business will consciously contribute to employment creation while pursuing profitability of their businesses. The business leadership must engage us on how we can create an environment where the private sector can contribute to the creation of decent work. The basis for such engagement should not be a trade off between a total " no regulatory " environment against business making their own contribution. It should be about engaging on the complimentary roles of business andgovernment.
• The industrial policy will be implemented with renewed vigour focusing on directing investment in underdeveloped and priority sectors of the economy, with special focus on local industry and SMME development.
• For the first time in many years we are seriously trying to define the role of the development finance institutions in the development agenda of the country. Over the years we have allowed the mandates of these institutions to shift from focusing on the development impact to super financial performance. DFI mandates should include developmental objectives with an appropriate risk appetite.
• The renewed focus on rural development, land and agrarian reform is informed by our understanding that food production and food security will have a positive impact on food prices and will contribute to programme of reducing poverty. This is very important when South Africa is currently a net importer of food.
• Education and health have been identified as priority areas for the next five years.

I am sure that you would have noticed that when we had an opportunity to effect some cabinet reshuffle we proved our seriousness about the commitments we make, in health, safety and security, justice and the blend that is beginning to emerge. Our expectation is that business will give honest feedback about any action we take. We appreciate that we are the most scrutinised leadership collective in the country today. We can only be better by the day.