Business Unity South Africa (Busa) on Wednesday said it regarded the current political and economic situation, which includes the recent Cabinet reshuffle and the country’s downgrade to junk status by Standard & Poor’s as a “severe and very grave” situation.

At an AHI small and medium-sized enterprise indaba, in Centurion, CEO Tanya Cohen said the country was now facing a fundamental crisis.

“Notwithstanding the remarks by President Jacob Zuma that he was aiming to make Cabinet more ambitious and suited to economic transformation, the crux of it is that the consequences have been immediate; it damages our reputation as an investment destination and damages our joint prosperity.”

Cohen said organised business needed to exert as much pressure as it could to prevent South Africa from becoming a failed State.

“We are not being effective enough in getting the message out. The current reality affects every single citizen. It’s not just about business, it will affect the poorest of the poor. With less money available for social services, it will affect our ability to create jobs, to grow our economy and our ability to transform,” she said.

However, Cohen said she understood that many South Africans were feeling powerless and, as such, organised business would act on their behalf. “We plan to partner as much as we can and coordinate efforts to push back [against] what is currently happening.”

Busa was further calling on the ruling African National Congress to meet with them and to act in the best interest of the country, while it would also meet with new Finance Minister Malusi Gigaba. “We know there are dedicated Treasury officials that remain, but we will exert pressure to ensure that they stay on course.”

Further, Busa was engaging with organised labour, including the Congress of South African Trade Unions and its former general secretary Zwelinzima Vavi, as well as the Federation of Unions of South Africa. “There is a general concern from their side too,” said Cohen.

Meanwhile, she said the current political and economic landscape should not take away from the country’s narrative of achieving radical economic transformation.

This, she explained, included that necessary action had to be taken to fundamentally change South Africa’s economic structure from the roots. “We cannot grow our economy if we don’t include the 6.9-million unemployed into business of all sizes and all formats.”

Cohen said the debate around how the country would get more people into the tax base and be self-sustaining, also needed to be raised. “Most importantly, what do we do about skills and education?” she asked.