THE BROAD ENVIRONMENT FOR BUSINESSES

The focus is on the National elections on 29th May 2024 in South Africa   

The broad environment businesses operate under

ECONOMIC

POLITICAL

TECHNOLOGICAL

SOCIAL

CLIMATE (Change)

In South Africa, our national elections are a few weeks away they have been described as the most important elections since our first democratic elections in 1994. They are critical for the business environment. The tempo in the country is set to rise to what we experienced in The Rugby World Cup.... as tense as that.

Before continuing with the elections let us comment on the relationship business has with the government. 

·         Businesses use commonsense and are pragmatic (practical, face reality).  Businesses need to survive, even thrive, whatever the prevailing conditions are including political policies.

·         Sustainability and being in the game for the long haul … are important reasons businesses should be concerned and participate in our country's socio-economic and political direction and future.

·         Good governance is essential for businesses to thrive, the failures of the ANC government have all been written about in our press. A good summary is written by Moeletsi Mbeki in a paper titled “The Five Deadly Sins of the ANC government since 1994”.

In the build-up to the elections, the following should be understood:

·         The turning point in our social, economic, and political life was the banks subprime crisis between 2007 and 2010.

·         The economic world recession dropped SA's GDP growth to minus 2%. Inevitably the buzz of economic activity slowed down; more unemployment, deterioration in many areas, SOEs (State Owned Enterprises), and many government departments (police, health care, post office, home affairs, and more) battled with corruption and poor management.

·           Zuma was our President at the time of the subprime crisis, since then SA has not been able to grow more than about 1% GDP growth per annum. We need at least 6% to increase jobs and tax revenue to continue the prosperity that started with our becoming a constitutional democracy.

·         A dramatic event took place In the build-up to the end of the May elections. Zuma formed and registered his party – the MK (uMkhonto Wesizwe) Party.  A breakaway from the ANC. (Stop Press…a major battle between the two founders both Zuma and his second-in-command are calling for each other’s expulsion)

. What would this now mean for Cyril Ramaphosa and the ANC? After all, keeping the ANC party together and winning the next elections outright was a priority for Ramaphosa.

·         Zuma was never expelled from the ANC for bringing the organization into ill repute, it took the formation of MK for Zuma to be suspended from the ANC, later to face a hearing from the National Disciplinary Committee of the ANC for his expulsion.

·         Would the ANC be better off without Zuma and the RET (Radical Economic Transformation) faction? The perception is the Radical word in RET, meant tolerating much of the corruption even looting that went on in government.

·         The focus is on Cyril in these next few weeks. Will he now face the nation and admit the problems he has been having? The rumours that Putin may have been playing a double game, supporting both the ANC and MK.

·         Cyril could also build trust with the Nation if honest admissions are made about the real purpose of policies coming from the National Democratic Revolution (NDR).  I refer to the revelations written in Anthea Jeffery’s Book “Countdown to Socialism.” Has this legislation that forces businesses to racially discriminate come from the SACP……. and is it not undermining substantive transformation for some political cause? ( Some contestable statements here!)

·         The next news item to hit the Political headlines was Thabo Mbeki announcing his support for the ANC, he was seen canvassing for the ANC and answering questions. Mbeki took responsibility for the state of the ANC, he felt accountable to be part of fixing, not deserting the ANC.

·         Thabo Mbeki is likely to be joined by other senior ANC members who have made a decision not to desert. What does this do to the fortunes, of MK, ANC and EFF, and even other parties? How much was Mbeki influenced by Zuma forming MK 

·         With Mbeki on board the ANC, one cannot see the ANC joining a coalition with either EFF or MK. The ideologies are too far apart.  Thabo Mbeki published recently his account of the ANC’s 30 years in power. It is a good discussion document.

Contestable statements: These quotes below are from the beginning of my book; “One Race, The Human Race, Now!” Contestable statements assist when things get genuinely serious, effective outcomes need a debate and to think and communicate like a scientist. Re Adam Grant's book “Think Again”     

 Quotes from my book

“For the practice of management to be effective and work, and for it to be a force to transform our society, we must not have legislation that discriminates South Africans based on race. This is irrespective of our apartheid past. That we need Transformation is a foregone conclusion. However, there are better drivers for transformation than using the social engineering of legislation.”

“I read your remarks about BEE with interest, recalling disagreeing with one of your early books that you asked me to edit – I thought you were being much too politically correct in your support of it. To me it was blindingly obvious that there is no place for that sort of restorative discrimination in any sustainable economic system. If the government thought, it was a good idea at the time they should at least have put a sunset clause on it.”

– A view from outside South Africa

We can look forward to the possibility of new faces in parliament Songezo Zibi, of the Rise Mzansi Party, will raise the level of debates and enhance our confidence in Parliament.

Zackie Achmat is a well-known activist for what is right, now! He will help keep parliament honest and will help MPs to think of, and act for others and not themselves.

Neil de Beer, with his United Independent Movement (UIM). Formerly National Security Advisor to Nelson Mandela. Judging by his interviews on TV, he won’t let anyone get away with dragging the country down with impractical policies.   

I don’t represent any organised business association; I am a freelance business management activist. These next elections are an opportunity to get SA back on track. We know that what is right will always triumph, it always has and always will. It is about timing, and change coming from the next elections......this is urgent, our primary focus.

 A win for the Multi-Party Charter (MPC) with the help of other smaller parties and independents, or even a reborn ANC. A large coalition, like a government of National Unity NU, is needed to reform the causes of why the government has gone so wrong.  A multiparty with independents in a coalition would be a BIG WIN for our constitutional democracy in South Africa.  Like winning the World Rugby Cup?

 Chasing the Sun 2 the five-part documentary rugby series showing on SA TV highlights the drama of the Rugby World Cup win. It was emotional, the coming together of all South Africans...together we are strong. That is what we are when we all come together, we show the world there is one South Africa. In business management, there is also one South Africa. We must all work hard in these elections, the harder we work, the luckier we will be. Our Springboks and coaching staff worked hard, made their luck......and won.