Business seeks win-win

As the government grapples with resuscitating the ailing economy amid the easing of Covid-19 pandemic restrictions, business have rallied behind President Cyril Ramaphosa’s efforts to get the country going. Big business is leading from the front, with some business leaders calling for more sacrifices by their fellows to allow for economic revival and to stem job losses resulting from the Covid-19 lockdown.

Buoyed by the easing of many restrictions under Level 1 lockdown, some even pointed out what should be done by the government and the private sector to rescue the economy. Both the Minerals Council South Africa (MCSA) and Business Unity South Africa (Busa) expressed optimism about the country’s economic future.

MCSA chief executive Roger Baxter said the mining industry supported the president’s call to “move to rebuild our economy, restore growth and create jobs” and is ready to play its part. He made suggestions on how to boost economic growth.

“We must address the key issues which undermine our relative competitiveness and impede our growth potential as a country,” he said. “Like the rest of the economy, the mining industry has significant potential and if the issues holding it back were to be addressed, this potential could be unleashed, enabling the industry and the country to embark on a new path of inclusive growth and investment, and ultimately, a better future for all.”

According to Baxter, addressing structural and institutional constraints would enable the mining sector to help lead the economic recovery. “If all these issues were to be addressed, we estimate that mineral sales could increase by R61 billion and tax revenues by R5 billion; 70,000 jobs could be saved, 26,000 additional direct mining jobs and 47,000 additional indirect jobs could be created in the next four years,” he said.

The government and the council needed utilise their social compact mechanism to address areas such as energy security and cost, logistical port and rail bottlenecks, regulatory uncertainty and modernisation. The council was concerned about social tensions with communities and organised labour, and crime, particularly illegal mining.

It lauded the “constructive engagement” and cooperation between the department of mineral resources and energy over the Covid-19 pandemic, a move that helped to save lives and livelihoods. “The industry remains committed to fighting the pandemic and ensuring all safety and health protocols are implemented to contain Covid-19. In his remarks at the annual meeting of Busa on Friday last week, its president, Sipho Pityana, said the lack of economic direction in the past precipitated one crisis and Covid-19 brought a second.

“All of us – government, business, labour and community – need to make the most of what we have learnt to ensure we do not enter a third, terminal crisis in which the wheels come completely off the economy,” Pityana said. He appealed for a more empathetic approach as the uncertain-ty of more job losses hit house-holds.

“Our journey in solidarity with society is not yet over. “The foundations of a meaningful social partnership are solidly laid in the difficult and testing times we are going through. “As business, we dare not fail the nation, even as we have to contend with the challenging economic environment,” he said.

The Busa proposals were not about short-term fixes and profiteering, but an agenda for sustainable inclusive economic recovery strategy that addressed unemployment, poverty and inequality, Pityana said. “Through it, we have introduced a business voice that is not about winner takes all, but the one that says it is possible to win together.– ericn@citizen.co.za

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