Business Leadership South Africa (BLSA) has extended its unwavering support to Business for South Africa (B4SA), after B4SA last week presented its economic recovery strategy document to council members of the BLSA.
BLSA and B4SA discussed how best to implement the proposed strategies in response to Covid-19 and the economic shock it is causing.
B4SA has identified two key initiatives that can accelerate the country’s economic recovery and could grow its domestic product by R1-trillion, generate 1.5-million jobs and increase tax revenues by R100-billion a year.
B4SA estimates that its economic recovery plan will require R3.4-trillion in funds over the next three years. This will push public sector debt from R4-trillion to R6.4-trillion, not taking into account any potential rescue funds for distressed companies or unforeseen bailouts of State-owned enterprises.
BLSA warns, however, that as much as strategies may be good on paper, without successful implementation, a strategy is but a fantasy.
“South Africa is great at plans but bad at implementation. The implementation and accountability now must be the main focus. While talk shops can often be a substitute for real work, talks will be required to get alignment between business, government and labour.
“Then implementation must be ruthless, with programmes adapted according to performance,” says BLSA CEO Busi Mavuso.
Mavuso says she applauds the business sector for having worked alongside government since the onset of Covid-19 and remaining fully committed to these joint efforts in addressing the socioeconomic impact, the health pandemic and the humanitarian consequences.
The B4SA plan recommends bold and practical steps that will provide an immediate boost to the economy, protect existing jobs and deliver new ones, while establishing other factors for securing long-term growth, she states.
Mavuso explains that the plan tackles unemployment and proposes measures to further support the business sector generally and, particularly, small, medium-sized and microenterprises.
“As one of the founding members of B4SA, we acknowledge that the Covid-19 pandemic constitutes an unprecedented challenge with very severe socioeconomic consequences. We are committed to doing everything necessary to meet this challenge in a spirit of solidarity,” Mavuso says.