SPEECH ON BEHALF OF THE BUSINESS CONSTITUENCY

27 September 2003

Delivered By Mr Cas Coovadia

Mr Deputy-President, Cabinet Ministers, leaders of the NEDLAC Constituencies and honoured guests.

On the occasion of the Growth and Development Summit, Mr Attie du Plessis, speaking on behalf of the business constituency, drew an analogy between the Summit processes and a journey of discovery. He pointed out that a key factor in the success of the Growth and Development Summit was the realisation by the social partners that none of us can undertake this journey alone. He stressed that we all need one another, we rely on one another and our future is dependent on each of us using our various strengths and talents to make sure that we keep travelling to a destination that we are close to agreeing on. The social dialogue leading to the Summit, and the Summit itself, demonstrated the power of this partnership and provides a good foundation for the consolidation of the partnership.

This still holds true some months after the Growth and Development Summit. What I would like to believe today, however, is that the road to our common destination has been made easier by a number of recent developments. While we undoubtedly still need a common and united purpose that will permit us to build on the positive beginnings of the Growth and Development Summit, there are surely far less obstacles in our path than there have probably ever been since NEDLAC was established in 1995. In fact, to continue the metaphor of a journey, our expedition is better equipped to deal with the hazards of the road ahead than it has ever been.

I say this for a number of reasons.

Firstly, today we have the opportunity to say a formal word of welcome to our new Executive Director, Mr Herbert Mkhize. As the business constituency, we look forward to working with you and to contributing to NEDLAC under your leadership and guidance. Not to put you under too much pressure in front of this august gathering, but we also look forward to participating in a NEDLAC that is revived and re-energised after its recent challenging period.

NEDLAC has a major role to play in ensuring that the words written on the pages of the Growth and Development Summit agreement are translated into sustainable action and this will require firm and decisive direction from the head of the organisation. We are certain that Mr Mkhize is more than equal to this challenge and, as an organised business community, we see his appointment as a very positive factor in helping us to continue on our journey with greater speed. We don't expect you to face these challenges alone, Mr Mkhize, and I would like to assure you today that the business constituency is ready to play its part in re-constituting NEDLAC as the dynamic and vibrant organisation that it should and can be.

Secondly, as a business constituency, we stand on the very brink of announcing that we have achieved unity at both the multi-sectoral and over-arching levels. I am sure that you will agree that this has been a long time coming, and that the process has seen a few hiccups along the way. Be that as it may, let me assure you that unity is now a reality and, in fact, it remains only for the formal announcements to be made in less than two weeks' time. Without wanting to anticipate these announcements, or detract from their impact, my colleagues in the unity processes at the over-arching level have permitted me to share with you the vision, mission and key objectives that we have agreed upon for the new, unified business organisation that will shortly replace the Black Business Council and Business South Africa - I focus on this organisation since this is the body that will henceforth represent business in NEDLAC and will also be charged with the implementation of the Growth and Development Summit agreements. Let me stress, what we are creating is an entirely new organisation, on whose establishment the current Black Business Council and Business South Africa will cease to exist. While there will be a certain sense of loss at the demise of these two organisations, they have served as the midwives for the birth of the new organisation and their work is now complete.

It is the vision of this new organisation to be a unified and fully representative organisation that contributes to a vibrant, transforming and growing economy in South Africa.

Its mission will be to ensure that organised business plays a constructive role, within the context of the country's economic growth, development and transformation goals, in achieving an environment in which businesses of all sizes and in all sectors can thrive, expand and be competitive both nationally and internationally.

Its key objectives will include:

• acting as the principal representative of business in South Africa in its national, sub-continental, continental and international spheres of activity, so as to ensure a primary and consistent representation of the views of the South African business community;
• promoting broad-based Black Economic Empowerment;
• advancing and promoting initiatives aimed at job creation and the alleviation of poverty.

As you see, ladies and gentlemen, the focus of the new organisation will be firmly fixed on the economic growth, development and transformation of South Africa and the role that business can play in these processes. As unified business we believe that we can contribute to these goals in a greater way than ever before and, with the combined strengths and talents of both the black and white business communities acting in concert, we are ready - finally - to participate in NEDLAC, and all other forums, as "ORGANISED" business. So, my friends - no more jokes about "disorganised" business will be allowed!

Thirdly, the Charter processes, so long-awaited, are coming to fruition and the mechanisms to make black economic empowerment a reality are being put into place. The Liquid Fuels Charter has been in place for quite some time. The Mining Charter is a reality, the Information Communications and Technology Charter process was commenced recently and the Financial Sector Charter will soon be finalised. I am sure that other important sectors of the economy will soon follow suit.

These Charters, in conjunction with government's BEE policies and legislation will surely pave the way for the transformation of our economy on a scale long awaited.

Sector Charters give real content and meaning to BEE. They represent the practice of transformation - transformation in action, so to speak - and demonstrate business' commitment to economic change in this country. Organised business recognises that the economic empowerment of previously disadvantaged South Africans must stand as one of the country's top priorities for the first decade of the 21 century. In our view, BEE is a critical element of any strategies to promote not only growth and development, but also the key issue of redistribution of opportunity. The main challenge is how to improve South Africa's investment climate, attract domestic and foreign investment and significantly raise the economic growth rate, while simultaneously promoting broad-based BEE. The critical point to emphasise is that BEE will best succeed in a high investment and high growth environment.

Fourthly, business and government are in discussions about the future of the Business Trust and we expect that the end result will be well-aligned with the outcomes of the Growth and Development Summit. This is an important development and only bodes well for the implementation of some of the initiatives envisaged at the Summit.

By way of an example, the Business Trust's Tourism Enterprise Project is an outstanding example of a focused small and medium enterprise promotion project which has used relatively modest resources to help stimulate profitable enterprises, create jobs and importantly bring previously disadvantaged people into the tourism sector. Imagine the success that we can achieve if we can extend this successful methodology in the tourism sector as well as emulate it in other sectors. Individual projects might not create the number of jobs we need to fight unemployment and poverty, but the cumulative mass of a whole host of such projects backed by continued sound macro and micro economic policies surely will, and this should be our objective. If we can achieve the twin aims of developing capacity and removing impediments in the policy environment, we will be able to embark on a large number of projects, which, taken together, will begin to turn back the tide of unemployment and poverty, thus coming closer to realising the ideals of the Growth and Development Summit.

So, ladies and gentlemen, we have new leadership at NEDLAC, unity in the business community to a degree never before seen in this country, real and demonstrable progress with economic transformation and the promise of a continued partnership between business and government to effect delivery to those who need it most. These individual factors are all in their own rights quite remarkable, but when taken together, we believe, will make a real difference to the future development and growth of our country. This is why I say that the road ahead will, hopefully, be far smoother than we anticipated and our arrival time much earlier than expected.

Grand expectations, though, must ever be tempered with realism, and, I would add, with hard work.

Without a doubt, from the business perspective, the Growth and Development Summit was a success, not only from the point of view of the substantive agreements reached, but also in the value of the preparatory processes. These provided an extensive opportunity for the NEDLAC constituencies to debate current issues, to learn more about each other's views and to reach far-reaching agreements on the basis of this deeper understanding. Truly, the Summit preparatory processes displayed social dialogue at its best.

Having said this, however, if we are honest, the post-Summit processes to implement what we agreed on 7 June, and which is all our joint responsibility, have not been adequate. More than three months have elapsed since the Summit and very little implementation - and certainly nothing at the scale required - has taken place. While no single constituency is solely responsible for the delay, business is not proud of this, and I am sure that the same holds true for our social partners. We will all be seriously neglecting the interests of the constituencies we represent, and indeed the people of this country, if we do not immediately take steps to ameliorate this situation.

We cannot ignore this reality, but rather than dwell on what we believe is a temporary hiatus in the process, let us look to the future for it is there that all our hopes lie.

We already have a better understanding between the social partners and the recognition that we need to work together to achieve our collective goals - the Growth and Development Summit proved this.

What we now need is the commitment and dedication to build on this foundation so that we can bring the words of the Growth and Development Summit agreements to life in the form of projects and initiatives that will create jobs and grow our economy.

As I said earlier, we as business are of the view that a number of factors have emerged since the Growth and Development Summit that will facilitate the greater co-operation and partnerships needed to achieve these aims.

If you will permit me a brief digression, I would like to compare the tasks that lie before us at a national level, with the recent events in Mexico that have been played out on the international stage. Here we have witnessed the collapse of multi-lateral trade discussions because the appeals of the developing countries of the world, particularly those related to agriculture and better market access, fell on deaf ears. Not only is this issue of great importance to our country - and we need to give careful consideration to what we can do to promote the terms on which we, and other emerging economies, trade with the rest of the world - but it demonstrates what can be achieved when likeminded people, or countries in this example, stand united with a common cause.

Nelson Mandela said that a good head and a good heart are always a formidable combination. I think that we all have good hearts, or the right intentions, when it comes to working together to get the Growth and Development Summit implementation processes moving. We need to bring the good heads, or the rational plans and the sheer hard work, to make implementation a reality.

Our hope for this NEDLAC Summit, therefore, is that we all, as partners, re-dedicate and re-commit ourselves to making the dreams expressed at the Growth and Development Summit a reality. Urgency is required, but we must ever be mindful that it is only careful planning and deliberation that will give us the meaningful and sustainable outcomes that we require.

With this commitment in place, we can move forward on our journey to a South Africa that holds the promise of a better life for all its people. Business is dedicated to this end and I am certain that the same can be said for our social partners.