The Gordhan-CEO conversation

President Jacob Zuma met

with more than 100
inuential people on
Tuesday in Cape Town.
The meeting was a follow-up
on a meeting Finance Minister
Pravin Gordhan had with
CEOs in Johannesburg at the
end of January.
The meetings were held due
to concerns about SA being
downgraded to junk and to

improve prospects at a time

when the economy is only
forecast to grow by less than
1%, but the presidency
portrayed the meeting as a
follow-up on the World
Economic Forum in Davos.
Business key issue was that
the National Development
Plan (NDP) is not being
implemented, among many
reasons growth is stagnating

Khanyisile Kweyama, Business Unity SA chief

executive:
Government and business needed to meet before the
state of the nation address. We covered topics that
included the credit rating and scal discipline.
The management of the state was raised. A number
of companies have cut overheads to a sustainable
level and the state needs to do the same.
State-owned entities (SOEs) have a critical role and
are key to the growth agenda. Business is concerned
and has a lot of leadership and skills that could be
used at SOEs. There was a call for partnership
between government and business.
State assets, such as a stake in power stations,
need to be sold to raise money. Immigration policy
has caused pain for tourism and skilled workers.
There was also a call for a review of legislation,
such as the Mineral and Petroleum Resources
Development Act, as uncertainty holds investors back.

Mike Brown, chief executive of Nedbank:

The heads of some of the countrys biggest
companies presented suggestions on how to boost
the ailing economy, including the sale of state-owned
assets and the creation of an anti-corruption
committee, Brown said, according to Bloomberg.
Increasing taxes while cutting back on government
expenses, and the more effective management of
state-owned companies by appointing experienced
business professionals to boards, were topics for
discussion, according to Brown.

The media needs

to explain the
global economy
better for an SA audience

What CEOs
told Gordgan

The nancial
markets and the
real world move
on different trajectories

What responsibility do
we take for our own
environment?

Cas Coovadia, Managing Director:

Banking Association of SA:
The meeting was about the economy and avoiding
junk status, creating small and medium-sized
enterprise growth, having legislative certainty and
not shifting the goalposts, while getting rid of red
tape. State-owned enterprises should have skilled
people, and business wondered if government would
be happy with business sitting on the boards.
We must send out a message that were open for
investment, but laws must protect investments. The
Mineral and Petroleum Resources Development Act
and the Protection of Investment Act send out mixed
messages.
When government speaks about expropriating land
without compensation, that sends mixed messages.

Sim Tshabalala, Standard Bank chief executive:

The make-up of the participants at the meeting was
a highlight. I dont think there has been a meeting of
similar make-up in SA for a long time.
Business leaders agreed with the president and
ministers that the short-run outlook was challenging.
SA could grow at less than 1% this year as a result
of low commodity prices, slowing growth in China
and the continued weak performance of the global
economy. There was broad agreement that urgent
joint action had to be taken to avert the eventuality of
a ratings downgrade.

SAs big-four challenges

are: social cohesion;
inequality; anti-racism and
nonracialism; investment ratings
If we dont act
collectively on
ratings, we will
all pay the costs

Business is
beginning to think
in social democratic
terms business leaders
are developing empathy
Nic Kohler, Hollard Insurance chief executive:
Business put together an eight-point plan that
touched on the below and was presented at the
meeting. The eight points were:

The need to unite behind a cohesive narrative and
plan, in the form of the NDP

To overdeliver on scal consolidation

More effective SOEs to stop the drain on the scus

To review legislative implementation for
consistency and certainty

For labour regulations to contribute to inclusive
growth, especially for the youth

A proposal to accelerate public-private
partnerships for infrastructure enhancement
along the lines of the renewable energy
programme

A proposal to establish a standing committee to
deal with corruption in the public and private
sectors

Business supports Treasury and government to
achieve these goals, and will take tough actions
where needed

What Gordhan
told CEOs

We need a new SA
psyche to create a
dynamism on the
ground

There are lots of

differences. Can
we focus on our
similarities?

Why do workers
spend 30% to
40% of their
income on transport?

Stavros Nicolaou, head of strategic trade at

Aspen Pharmacare:
Tuesdays meeting gave a clear sense both from
government and business that unless we work
together, we will face a downgrade. I think the
president sought our views to prevent this. It centred
on instilling greater scal discipline and how we can
work together to build inclusive growth. We all
agreed weve got to bring labour into that.
When Pravin Gordhan concluded the meeting, he
said we needed to pursue the eight-point plan and we
agreed to a joint working committee between
government and organised business, to be co-chaired
by Jabu Mabuza and Gordhan.

We have a developmental
state but not an
implementation state

There is a common
sense of crisis and
there are huge
opportunities in a crisis

Tell us what you think about

the governments efforts to
grow the economy, create
jobs and boost business and
avert a ratings downgrade to
junk status. What more do
you think big business can
do to boost the economy?
SMS us on 35697 using
the keyword ECONOMY and
tell us what you think.
Please include your name.
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Everyones in
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