Cogence Summit 2024: Business leaders realistic but optimistic about growth in SA
It’s not often that South Africans hear optimistic news about the country, but this perception is not reality, according to business leaders Discovery Bank Chair Reuel Khoza, Ninety One CEO Hendrik Du Toit, and Eskom Chair Mteto Nyati.
The seasoned business and investment leaders discussed the political and economic landscape in South Africa and strategies for driving sustainable economic growth during a panel discussion at the 2024 Cogence Summit, which recently took place in Sandton.
The Nielsen Network CEO, Bronwyn Nielsen, who moderated the session, asked the panel what they thought of South Africa’s Government of National Unity (GNU) and whether the stream of negative news in the media about South Africa’s economic prospects was warranted.
Du Toit, echoing views shared earlier at the Cogence Summit by BlackRock CEO Larry Fink, agreed that “the media coverage is not positive enough.” He expressed his optimism after recently meeting with the GNU delegation under the leadership of the Deputy President in London. “The commitment to the GNU is very high from outward-facing ministers – I don’t think enough credit is being given for that. South Africa is currently undergoing a period of significant change. We can reset.”
Khoza added that the GNU is a welcome development because instead of adversarial parties that oppose “for the sake of opposing… now, we have people seeking to depolarise. We have people who have come together. Now the world sees us as cooperative.”
He believes that businesses and government working in true partnership – as they have been doing through Operation Vulindlela, a joint initiative of the Presidency and National Treasury to accelerate structural reforms and support – is key.
“I want to believe we will see similar outcomes if big business works hand-in-hand with government. In the early years of our democracy, there was no aversion to working together. President Nelson Mandela spent time with business leaders. There was receptivity and dynamic growth. Things went wrong when ideology gained ascendancy. Nationalist parties had a tail that wagged the dog. What has improved is that the tail is now semi-detached.
“Now, big business and the government are beginning to work together.” We have a solutionist approach to make sure the industry works. If you take that, even to the agriculture sector – people with skills working with people willing to acquire skills – even huge problems like food security can be addressed.”
Nyati added that all business leaders recognise the value of true diversity – not just of race but of perspective, age, gender, and so on. “You need different people to help you look at a problem from different angles and help you solve it. We get that in business. So, for me, the GNU is just the government waking up to that fact.
“Eskom is a wonderful example of bringing in such expertise. If you look at the current composition of our board, you will notice that many members come from the private sector and have a business lens. We are used to solving mechanical and people problems. We need the discipline to come up with a plan, come with the right people, and give them the space to do their jobs.”
He also shared a remarkable example of how Eskom is using technology to deal with corruption systematically. “We know there is a corruption problem in Eskom, and we need to take decisive action. So, to understand who is doing what, we began to leverage AI to map and target likely suspects. We use data from procurement, title deeds, and so on to create a profile. With such information, we are able to arrest people. Almost every week there is someone who has to face consequences. It’s very targeted and effective.” Eskom is moving in the right direction, Nyati said, and the GNU can seek out and solve problems like this, too.
Khoza commended Nyati for being solutionist in orientation, adding, “There’s hope for South Africa as a political entity. But [politicians] are managing both a polity and an economy. So, they need to be more open-minded to the business approach.”
Du Toit concluded by emphasising the importance of taking quick and decisive action to avoid squandering the opportunity for digitally fuelled growth and the positive sentiment around the GNU. “We need to navigate the opportunities and threats we face as a country with extreme urgency. We have to grow our economy, and we shouldn’t restrict that through government policy. I encourage South Africans to be outward looking. The rest of the world is not waiting for us. We have to adapt and get on with it!”
