Eminent business executive Professor Bonang Mohale, who chairs the Business Unity SA (Busa), did not mince his words about the state of the economy and the lack of leadership, calling South Africa “a failed state”.
Speaking at the Business Ethics Series event, Mohale said the regressing economy was pushing it dangerously close for the government to be unable to afford the country’s astronomical debt burden and the debt service costs.
“We are not a failing State, but a failed State. Therefore, the importance of ethical leadership has never been more important,” Mohale said.
“Each time we experience load shedding, we are wiping approximately 1% off the GDP (gross domestic product), affecting the future of each and every single South African – that is why we all have to care deeply and profoundly about the country’s future.”
Mohale is not alone in his sentiments.
Many JSE-listed company CEOs have called out the government over its failure to provide solutions on an ever-increasing list of issues. These include the power crisis, coupled with deteriorating logistics industry, infrastructure vandalism, record-levels of unemployment and rising poverty, policing, service delivery, among others.
The business sector in South Africa is basically on the verge of losing confidence in the country’s commitment to combat corruption and boost economic growth under President Cyril Ramaphosa’s leadership.
This comes as sentiment from business fell from an over seven-year high in January mainly due to the adverse effects of the worsening power crisis, after gaining strong momentum towards the end of 2022.
After Ramaphosa’s State of the Nation Address this month, economists and business were united in their call for President Cyril Ramaphosa to walk the talk and guard the state’s money bags, after his announcement of a national state of disaster to deal with the ongoing energy crisis.
Mohale was speaking during a panel discussion at the launch of the Business Ethics Series which was hosted by the South African Chamber UK, in partnership with University of Pretoria’s GIBS Business School on Wednesday night.
The panel discussed business ethics, collective action, effective culture in organisations, self-reflection, and accountability, building and earning trust, whistle-blower protection and support, transparent tender processes, and the importance of professional bodies in South Africa and their proactive involvement in the country’s rule of law, among other topics.
The discussion was focused on how business can implement a practical turnaround strategy to work together with stakeholders to resurrect South Africa’s ailing economy.
UK legislator and ethical business activist Lord Peter Hain warned that South Africa would not be able to combat corruption if business does not play the part.
“We believe that South Africa will not emerge from its past and current morass of corruption, dysfunctional public services, cronyism, crime, poverty, low to negative economic growth and unemployment, unless we all stand up to be counted to demand that it never happens again,” Hain said.
“It is, however, important to acknowledge that South African and global businesses are also culpable to State capture, in fact, it couldn’t have happened without the assistance of business.”
The Business Ethics Series will review progress, a year from now, on what tangible difference, in the anti-corruption culture, has been made.
During the year the SA Chamber UK, in conjunction with GIBS will run a program of how business can effectively combat corruption through stakeholder cooperation.
Chair of the SA Chamber UK Sharon Constancon put out a challenge to business to make a difference in society and be accountable for change.
“However, regardless of this failure, there is no excuse for businesses not to step up now, to cooperate and fight against corruptors and corruption,” Constancon said.
BUSINESS REPORT