Around 90 CEOs were working in conjunction with government to protect South Africa’s investment grade credit rating, the Banking Association South Africa said in a statement on Friday.
Led by Telkom chairperson Jabu Mabuza, the National Business Initiative, along with the Department of Finance and the National Treasury, was progressing initiatives with “unprecedented urgency and dedication” aimed at avoiding a sovereign rating downgrade.
“We are singularly focused on this objective and call on all South Africans to support this goal and ensure that their actions support it,” the statement said.
Three critical initiatives were at the core of the work being undertaken, including the structuring and launch of a private sector-led entrepreneurship fund, with initial capital of R1.5-billion raised from top JSE-listed companies, to provide equity to high-growth small and medium enterprises.
Further, the parties were exploring investment opportunities in mining, construction, tourism, health, manufacturing, agriculture and other sectors to develop investment projects for corporate entities operating in these sectors.
“Senior corporate finance teams have been meeting CEOs from corporate [firms] in these sectors to structure investment opportunities. This team is also looking at private sector support in strengthening the State-owned enterprises.”
Finally, a third team was working on a nine-point plan, the outcome of which formed the basis of engagement between this business group and rating agencies.