Seifsa bemoans state of govt, business relations, calls for ‘meaningful’ resuscitation

19th May 2014 By: Terence Creamer - Creamer Media Editor

Seifsa bemoans state of govt, business relations, calls for ‘meaningful’ resuscitation

Seifsa CEO Kaizer Nyatsumba
Photo by: Duane Daws

Steel and Engineering Industries Federation of Southern Africa (Seifsa) CEO Kaizer Nyatsumba has bemoaned the deterioration in relations between government and business over the past five years and used the platform of the Manufacturing Indaba, which kicked off in Ekurhuleni on Monday, to appeal to President Jacob Zuma to resuscitate “meaningful, regular engagements” with the business community.

The former political journalist and editor, who currently leads an organisation representing 27 employer associations with a combined membership of over 2 000 companies, employing over 200 000 employees, warned that government-business relations were “far from what it should be” and had “worsened” over time.

Zuma and the African National Congress needed to accept that “they don’t have all the answers to our economic challenges” and that lasting economic growth could “take place only with the full and active participation of a private sector that feels appreciated and valued”.

Sharing a platform with Ekurhuleni mayor Mondli Gungubele, Gauteng Economic Development MEC Mxolisi Xayiya and the Department of Trade and Industry’s (DTI’s) Garth Strachan, Nyatsumba also slammed government’s celebration and encouragement of racial divisions within the business community, which had undermined the role of Business Unity South Africa as the single, apex business organisation in the country.

Without making direct reference to the formation of the Black Business Council, Nyatsumba argued that “racial solidarity is not – and has not been – the same thing as championing and advancing transformation”.

Government-business relations also emerged as a key theme of the other keynote speakers, with Gungubele going into some detail on how the Gauteng city planned to improve the investment and business climate, especially for manufacturers.

Strachan indicated that the aim of the Industrial Policy Action Plan was for government to “steer not row” when it came to its intervening in the economy. However, he also stressed the need for CEOs to make time personally for interactions with government. He argued that, while interactions with intermediaries were ongoing and constructive, there a higher level of engagement was required to ensure real reindustrialisation progress.

Nyatsumba acknowledged DTI’s consultation efforts, but said that only when all in government fully recognised business as a partner would South Africa realise its true economic potential.

“President Zuma has a wonderful opportunity to set the right tone this week as he puts the final touches to his Cabinet. He can send a powerful message to the business community here and abroad that South Africa’s economic performance is at the top of his agenda for his last term in office by appointing hard-working, open-minded and business-friendly men and women to Ministries within his economic cluster.”

He also appealed for the new administration to put the economy first and for government to become more active in addressing the volatile labour climate. “Government can no longer afford to be an idle bystander at a time when some labour movements in the country appear intent on sowing destruction and mayhem on the country’s factory floors.”