Issue 10 - 2017 Wage Negotiations Update
A sub-committee of the Negotiating Team appointed by the SEIFSA Council met with all five trade unions today in an effort to bring this year’s negotiations to a successful conclusion and avert the prospect of industrial action.
Details of the meeting will be shared with the SEIFSA Council at its meeting on Monday, 7 August 2017.
We will continue to keep you and the SEIFSA Council informed of developments in these engagements. No agreement will be concluded with labour in such engagements unless it has the prior approval of the SEIFSA Council.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270 I
E-mail: lucio@seifsa.co.za
LATEST PMI DATA AND A WEAKER RAND WILL FURTHER REDUCE MARGINS OF METAL AND ENGINEERING COMPANIES
JOHANNESBURG, 2 August 2017 – Manufacturers continue to face serious headwinds despite last month’s decision by the South African Reserve Bank to cut the repo rate by 25 basis points, which was an expansionary monetary policy move to reduce costs and stimulate demand, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Economist Michael Ade said today.
Dr Ade was commenting on the latest seasonally adjusted Absa Purchasing Managers' Index (PMI) which declined by 3.8 points to 42.9 in July 2017, with all five of the PMI sub-indices performing poorly. This is a second consecutive monthly decline from 46.7 in June, and also the weakest since the second half of 2009. The seasonally adjusted business activity sub-index performed the worst, declining to a low 39.3.
“The data point is largely driven by souring of sentiment, including low executive, business and consumer confidence. These feed into poor month-to-month changes in demand and factory activity. A further consequence of the generally low confidence is a depreciation of the rand against the dollar, despite a strong performance in July,” he said.
Dr Ade said the poor PMI data and the weakening of the rand against the dollar would increase input costs and add pressure on the bottom line of companies in the metals and engineering (M&E) sub-component.
“This does not augur well for business, especially given that the M&E sub-industry is at a crucial phase of wage negotiations. Businesses are in a very dynamic environment of increasing costs and diminishing returns, which heightens the level of uneasiness,” he said.
SEIFSA Economist Marique-Mari Kruger said the PMI reading, which came well below the 50 mark, signaled a contraction in the manufacturing sector. “This is disappointing when compared to the performance of our important trading partners in the Eurozone and the US, with the countries generally scoring PMI indices of above 50,” she said.
However, Ms Kruger said there was still hope because, while the PMI index dropped in July 2017, compared to June 2017, the movement was better than the downward 4.8 index points recorded from May 2017 to June 2017.
Dr Ade and Ms Kruger said next month’s data could improve, provided there was increased focus on the Government’s economic policy implementation, improved business and market sentiment, continued positive inflation outlook and a speedy resolution to the wage disputes in the metals and engineering industry.
ENDS
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
Issue 9 - 2017 Wage Negotiations Update
As you are no doubt aware, the Bargaining Council’s Sub-Committee appointed to resolve the dispute declared by the trade unions on 15 June 2017 concluded its deliberations on 6 July, without reaching an agreement.
In accordance with the mandate from our member Associations, SEIFSA has been engaging directly with labour and other key stakeholders on its own. To date, we have had a series of bilateral engagements with NUMSA and other trade unions, in an effort to avert a strike and to find a solution that is in the best interests of our constituency and the industry.
Representing SEIFSA in such bilateral engagements have been Senior Employer Representatives appointed by the SEIFSA Council, as well as SEIFSA’s Executive Management Team and some SEIFSA Board Members.
To date, no certificate or notice of strike action has been served and we remain confident that for as long as we are engaged in good-faith negotiations to deal with the few remaining issues on the negotiating table, we can avoid a strike and, more importantly, we can find a solution that is in the best interests of our constituency and the industry. Bilateral engagements with all key role players are continuing in earnest and we anticipate another anxious week’s wait before we may be able to present something concrete to the SEIFSA Council for its consideration.
A SEIFSA Council Meeting will take place on Monday, 7 August 2017 and we hope that by then a clearer picture of the situation will have emerged. In the interim, we expect the remainder of this week and next week to be normal, with little or no prospect of industrial action.
We will continue to keep you and the SEIFSA Council informed of any developments, should there be any, in these engagements. Once again, no agreement will be concluded with labour without the prior approval of the SEIFSA Council.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Web: www.seifsa.co.za
FALLING PPI POINTS TO WEAK DEMAND PROSPECTS IN THE ECONOMY, SAYS SEIFSA
FALLING PPI POINTS TO WEAK DEMAND PROSPECTS IN THE ECONOMY, SAYS SEIFSA
Johannesburg, 27 July 2017 – South Africa’s hard-pressed manufacturers are on the receiving end of the weak economy as there is little room to pass on cost increases, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Economist Marique Kruger said today.
The June 2017 Producer Price Index (PPI) for intermediate goods, released by Statistics South Africa, recorded a 2.1% increase between June 2016 and June 2017, which is down from the 3.1% year-on-year increase recorded in May 2017.
“This reflects a 4th consecutive year on year decrease, which is indicative of a lack of demand pull factors in the system. The fact is the economy is very weak and there is just not enough room for manufacturers to pass on cost increases into the market. PPI measures factory gate prices and therefore a good proxy for selling price inflation in the metals and engineering sector,” Ms Kruger said.
The metals and engineering sector made up two-thirds of the make-up of the PPI for intermediate manufactured goods, she said.
Between June 2016 and June 2017 SEIFSA’s Composite input cost index, which tracks a basket of input costs for the metals and engineering, recorded a decrease of 4.1%, she said.
“This index has exhibited a decreasing trend since the latter part of 2016, largely attributable to a relatively stronger rand during this period. Imported inputs contribute just over a third to the sectors input cost basket and as a result, a stronger rand has really helped to contain input costs for manufacturer in the sector,” she said.
Even though selling price inflation had been on the decrease in the last four months, there was a positive deferential between selling price inflation and input cost inflation, which was indicative of reduced pressure on margins, allowing companies to recoup some historic losses and repair balance sheets to an extent. The decreasing selling price limited the extent to which companies could enjoy the positive deferential, she said.
“We anticipate a narrowing in this positive deferential given the fact that the economy remains weak therefore limiting the upside prospects for selling price inflation. In addition to that, the metals and engineering sector is in the process of hopefully concluding a new wage deal soon, which will result in an increase in inputs costs. We will continue to monitor this trend.” she concluded.
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
HIGH-PROFILE SPEAKERS FOR THE 3rd ANNUAL SOUTHERN AFRICAN METALS AND ENGINEERING INDABA
HIGH-PROFILE SPEAKERS FOR THE 3rd ANNUAL SOUTHERN AFRICAN METALS AND ENGINEERING INDABA
JOHANNESBURG, 23 July 2017 – Renowned and prominent speakers will address delegates attending the 3rd Annual Southern African Metals and Engineering Indaba in September.
The Indaba will be held at the Industrial Development Corporation (IDC) Conference Centre in Sandton, from 14-15 September.
Now in its third year, the 2017 Indaba is an opportunity for business executives, captains of industry, policy makers, Government Ministers, academics, diplomats and labour leaders to discuss the challenges and opportunities facing the manufacturing, in general, and the steel and engineering sector, in particular.
This year’s conference, which will be held in partnership with the Industrial Development Corporation (IDC), takes place amid tough conditions in the sector which have resulted in, among others, lethargic growth, reduced exports, company closures/ liquidations and job losses. Efforts to rekindle growth in investment and employment in the sector require collaboration and cooperation between the Government, business and labour.
Highlights of the conference will include addresses by Minister of Labour Mildred Oliphant, Minister of Small Businesses Lindiwe Zulu and Cosatu General Secretary Bheki Ntshalintshali. ANC National Executive Committee member and former Chairperson of the African Union (AU), Dr Nkosazana Dlamini-Zuma, will deliver the closing remarks.
Other speakers will include Zimbabwean academic and political commentator Dr Ibbo Mandaza, businesswoman Dr Mamphela Ramphele, CEO of the of Mapungubwe Institute for Strategic Reflection (MISTRA) Joel Netshitenzhe, CEO of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA) Dr Raymond Patel, Massmart Cchairman Kuseni Dlamini, Chief Commissioner of the International Trade and Administration Commission Siyabulela Tsengiwe and the CEO of the Manufacturing Circle, Phillipa Rodseth.
SEIFSA Chief Executive Officer Kaizer Nyatsumba said the 2017 Indaba would build on the resounding successes of the two previous conferences. Last year’s conference included speeches by former President Kgalema Motlanthe, former Business Unity South Africa CEO Khanyisile Kweyama and Department of Trade and Industry Deputy Director-General Garth Strachan.
“We hope that, as in previous years, delegates at this year’s conference will engage in vigorous debate on matters affecting the sector and the economy at large. The speakers are experts in their areas of focus. The sessions have been carefully structured to tackle the key challenges facing manufacturers,” Mr Nyatsumba said.
The 2017 Indaba will focus on the following topics, among others:
- Political Leadership in Southern Africa: Does it Advance or Hamper Economic Growth?
- Ensuring that Manufacturing in Southern Africa Is Internationally Competitive
- The Continental Free Trade Area: A Reality Before The End of 2017?
- Winning Together: Can Government, Business and Labour Conclude a Social Compact in the interest of Labour Stability and Foreign Investment
- The Automotive Production and Development Programme and the South African Metals and Engineering Sector
- Do Steel Import Tariffs Benefit or Hurt the South African Economy?
- South Africa’s Junk Credit Rating: What do we need to do to regain our sovereign credit investment rating?
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
Business and consumer spending is important to boost the economy, says SEIFSA
BUSINESS AND CONSUMER SPENDING IS IMPORTANT TO BOOST THE ECONOMY, SAYS SEIFSA
Johannesburg, 19 July 2017 – South Africa’s ailing economy desperately needs an increase in business and consumer expenditure if it is to stabilize, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Junior Economist Roberta Noise said today.
Commenting on the June 2017 Consumer Price Index (CPI) data released by Statistics South Africa, which declined to 5.1% from 5.4% in May 2017 on an annual basis, Ms Noise said the ongoing easing of the CPI was a positive development since the index continued, for the third consecutive month since 2015, to be within the 3-6% band-width set by the South African Reserve Bank. However, she cautioned that a decrease in inflation is a sign of a decrease in economic growth, which is fuelled by spending.
“The decline in the CPI is as a direct result of the low consumer confidence environment currently at play, which is indicative of lower spending patterns. The Consumer Confidence Index, as published by FNB/BER, has contracted for the second consecutive quarter at -9 index points and has been at its lowest streak since the inception of the index.
“Contributions to the annual decline are seen in discretionary goods like restaurants, hotels, as well as clothing and footwear both contributing a negative 0.1 percentage points,” Ms Noise said.
She said the 0.2 % monthly increase was mainly driven by housing and utilities, which encompass the rental and basic utility-type goods. This confirms that the decline in prices is related to the decline in spending, she said.
“The current expenditure occurring is for more necessity-type goods, with a host of multinational retail stores announcing their departure by the end of the calendar year as a result of the low consumer spending appetite. Confidence in both the consumer and business spending environment needs to be restored,” Ms Noise said.
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
Issue 8 - 2017 Wage Negotiations Update
SEIFSA REPRESENTS SMALL AND BIG COMPANIES, AND SEEKS A WIN-WIN DISPENSATION WITH LABOUR
JOHANNESBURG, 12 JULY 2017 – Contrary to propaganda maliciously spread by another employer organisation, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) represents both small and big companies in its sector and fights hard to represent their interests, SEIFSA CEO Kaizer Nyatsumba said today.
Responding to a statement issued by NEASA today, Mr Nyatsumba said he found it bitterly disappointing that, following the deadlock in the 2017 wage negotiations in the metals and engineering sector, increasingly NEASA CEO Gerhard Papenfus was “viciously lashing out at everybody and everything, with SEIFSA particularly singled out for his worst propaganda campaign”.
Mr Nyatsumba said that Mr Papenfus appeared to be growing increasingly desperate and, in the process, sought to portray SEIFSA as an organisation that represented big employers in the sector and concluded deals only suitable to them.
“Nothing could be further from the truth. We represent both small and big employers. In fact, the overwhelming majority of our member companies employ no more than 50 people. Therefore, in our approach to negotiations with labour, we always strive to reach a deal that is acceptable to all our members, both small and big,” Mr Nyatsumba said.
He also took exception to Mr Papenfus’s attempts to characterize historic wage settlements in the Metals and Engineering Industries Bargaining Council as having been agreements between SEIFSA and one union, NUMSA.
“Nothing could be further from the truth. SEIFSA, which represents 25 independent employer Associations, has always negotiated and concluded agreements with all the trade unions in this sector, including Solidary. Although there are currently five unions within the MEIBC, all six trade unions were signatories to the 2014 settlement agreement,” he said.
Mr Nyatsumba stressed that SEIFSA operated strictly in accordance with a mandate from its member Associations which, in turn, get mandated by their members and keep them informed during the negotiations process. The Federation also regularly writes directly to member companies to keep them apprised of developments.
Mr Nyatsumba said that SEIFSA, whose Economics and Commercial Division closely monitors trends within the sector on an ongoing basis, knows only too well the terrible state in which the sector finds itself and is equally – if not more – concerned about it.
“Unlike NEASA, we do not believe that a solution to the challenges faced by the sector can be imposed on any of our stakeholders, including labour. Instead, we believe in working closely with government and labour, as partners, in search of solutions, instead of standing on rooftops and shouting insults at everybody.
“That is why we engage with labour on an ongoing basis, and not only during wage negotiations, and are involved in ongoing efforts to lobby policy makers in the best interests of the sector. Shouting and pointing fingers is easy, but engaging in a search for win-win solutions is another thing altogether,” Mr Nyatsumba said.
He said that, in keeping with the initial mandate from the SEIFSA Council (an assembly of the Federation’s member Associations), SEIFSA had worked closely with other employer organisations – including NEASA – until last week. It will now engage directly with the unions in an effort to avoid industrial action, “which would have a devastating impact on an already fragile sector”.
“We have absolutely no intention of concluding a deal that would worsen the situation, nor do we have a mandate to do so. Instead, in these bilateral engagements we will seek to conclude a realistic settlement acceptable to our members.
“Clearly, it will not be possible to reach a settlement unless it is fair both to our members and to our labour partners. After all, it is in our mutual interest – and, indeed, South Africa’s – that no further job losses occur and that over time the sector becomes more competitive internationally,” Mr Nyatsumba said.
He said that it was unfortunate that, at a time when employers’ efforts should be on reaching an acceptable deal with labour to avoid industrial action, SEIFSA finds itself having to respond to NEASA’s vitriol and to set the record straight.
“For the record, we at SEIFSA have absolutely nothing against NEASA. We do not consider the organisation to be an enemy and have never singled it out for attacks, which is why we worked with it and other employer parties in a joint employer caucus both during this round of negotiations and in 2014. Unfortunately, our two organisations (SEIFSA and NEASA) no longer agree on the best way forward.
“We find it extremely unfortunate that NEASA has again targeted SEIFSA for these wholly unjustified, vitriolic attacks. We have no intention of responding in kind,” said Mr Nyatsumba.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Web: www.seifsa.co.za
SEIFSA MAKES TWO TOP APPOINTMENTS IN ITS ECONOMICS DIVISION
SEIFSA MAKES TWO TOP APPOINTMENTS IN ITS ECONOMICS DIVISION
JOHANNEBURG, 17 July 2017 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is pleased to announce the appointment of Dr Michael Ade as Chief Economist and Ms Marique-Mari Kruger as Economist (pictures attached) with effect from 17 July 2017 and 1 August 2017, respectively.
Dr Ade holds a B.Com from the University of Buea in Cameroon, a B.Com Honours in General and Financial Economics and an M.Com in Economic Development and Policy Issues from the University of Johannesburg, as well as a Ph.D in Public Economics (Taxation) and International Economics from the University of the Witwatersrand. He also holds certificates in International Trade and Commodity Finance, Export Management and Econometric Analysis of Panel Data.
Dr Ade will join SEIFSA from the South African Revenue Service where he is the Director: Capacity Development, Programmes and Research. He has previously worked as Chief Economist at Productivity South Africa, Transitional and Technical Manager at ABSA Bank and Group Accountant at Afrikings, the marketing wing of Vodacom.
Ms Kruger holds a B.Com in Economics and Econometrics and a B.Com Honours in International Trade and Finance, both from the University of Johannesburg. She has just completed her M.Com in Economics from the University of Johannesburg.
Ms Kruger has worked as Transfers Administrator at ABSA Investment Management Services, Reports Coordinator at Collective Dynamics, Economic Research Assistant at the University of Johannesburg, Economist at Statistics South Africa and Junior Commodity Economist at Economic Trends South Africa.
SEIFSA Chief Executive Officer Kaizer Nyatsumba said these high-calibre appointments indicated the Federation’s intention to ensure that it continued to be an unequalled repository of information on the economics of the metals and engineering sector.
“I am delighted that Dr Ade and Ms Kruger are joining SEIFSA. They bring an extensive wealth of experience, expertise and knowledge that is necessary to provide economic analysis of issues affecting the steel and engineering sector.
“I am certain that they will be a strong addition to the team of experts working for SEIFSA in the best interests of our member Associations and companies,” Mr Nyatsumba said.
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
Issue 7 - 2017 Wage Negotiations Update
The Bargaining Council’s Sub-Committee appointed to resolve the dispute declared by the trade unions on 15 June 2017 concluded its deliberations today (6 July) without reaching an agreement.
In the meeting today, the employers tabled a revised position covering the following key areas in an effort to resolve the dispute:
- a three-year agreement;
- extension of the terms of the agreement to non-parties;
- an entry-level wage rate;
- an offer to increase wages on actual rates of pay by 5,3% and by 5,5% on the minimum scheduled rates;
- a process to expedite the finalisation of the Main Agreement National Exemptions Policy; and
- a proposal to strengthen Clause 37 of the Main Agreement (i.e. the clause protecting members from being approached for plant-level bargaining on matters of a substantive nature).
This Revised Employer Offer was supported by all the SEIFSA-affiliated Associations, but NEASA elected not to associate itself with the offer and SAEFA and CEO respectively chose to reserve their rights. The Border Industries Association did not participate directly in the process.
On the whole, all the trade unions have rejected the Revised Employer Offer. However, some of them indicated their in-principle support for certain aspects of the offer and others expressed willingness to continue to engage with employers in an ongoing effort to reach an agreement. On the other hand, NUMSA rejected the offer outright and formally requested the issuing of a certificate confirming that the dispute remains unresolved.
It is important for member companies and Associations to note that no strike (and lock-out action) may be implemented unless:
- a certificate is issued by the General Secretary of the Bargaining Council, on instruction from the Management Committee, to any party wishing to proceed with industrial action;
- once a certificate is issued, the trade union/s must thereafter issue a clear and unambiguous 48 hours’ notice of an intention to embark on strike action;
- the Bargaining Council’s Management Committee is only scheduled to meet on 21 July 2017, which means that any industrial action can only take place 48 hours thereafter; OR
- on the expiry of 30 days from the declaration of dispute.
With the trade unions having declared their dispute on 15 June 2017, the 30-day period is due to lapse on Saturday, 15 July 2017. Therefore, strike action can only take place on or after 18 July 2017.
Please note that the issuing of a 48-hour notice of intention to strike does not necessarily mean that strike action will follow immediately. Usually, the notice to embark on industrial action will contain information on the commencement and nature of the intended strike action.
Upon receipt from any union/s of its/their notice to strike, SEIFSA will immediately respond with a 48-hour notice of its own of intended Lock-Out action, on behalf of all its member Associations and their respective member companies. This will have the effect of reserving the rights of individual member companies to implement a lock-out of all striking employees, should they wish to do so.
In accordance with the mandate from our member Associations, SEIFSA has so far worked in a close partnership with fellow employer organisations in the MEIBC. Again consistent with our mandate as revised by the SEIFSA Council on 26 June 2017, the SEIFSA Negotiating Team will now seek to engage directly with labour and other key stakeholders on our own. We hope to begin a series of bilateral engagements with labour as soon as possible, followed by engagements with other parties in an effort to avert an industry strike and to find a solution that is in the best interests of our constituency and the industry.
Representing SEIFSA in such bilateral engagements will be a senior delegation appointed by the SEIFSA Council, which includes SEIFSA’s Executive Management Team, some Board Members and Association Chairpersons of some of our member Associations.
We will continue to keep you and the SEIFSA Council informed of developments in these engagements. No agreement will be concluded with labour in such engagements unless it has the prior approval of the SEIFSA Council.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Web: www.seifsa.co.za
From the Chief Executive Officer’s Desk - July to August 2017
Here we are, at the beginning of 2018, with so much promise in the air. After eight lost years of the Jacob Zuma presidency, finally it seems that the country is on the verge of solid leadership and economic stability.
In years to come, the election of Cyril Matamela Ramaphosa as the 13th president of the governing African National Congress (ANC) in its 106-year history may be seen to have been a major turning point in our fortunes as a country. Unlike his predecessor – who is likely to have been ejected from office by the time this issue of SEIFSA News is published – Ramaphosa can legitimately be described as a man of integrity who works hard and leads by example.
Uniquely among his fellow contestants for the position of ANC president ahead of the organisation’s 54th national conference in Johannesburg, Ramaphosa combines experience and expertise in labour, business and government. He has a firm grasp of how the economy works and knows and appreciates the fact that it is business that creates jobs, and not governments, and that South Africa is involved in a never-ending competition for foreign investment with many other countries around the world.
He enjoys widespread respect both here and abroad, and has served on the Atlanta-based Coca-Cola Company’s International Board of Advisers, among other senior positions. Among his many achievements, his co-architecture, along with Roelf Meyer and others, of South African’s Interim Constitution during the multi-party talks in the Convention for a Democractic South Africa (CODESA) and of the current Constitution that was subsequently adopted by the National Assembly in 1996 must rank among the highest.
Following his election as ANC president in December, Ramaphosa now stands a good chance of becoming South Africa’s next Head of State, should the organisation win in the forthcoming national elections next year. Among the seven individuals who contested the ANC presidency, he it was who stood the best chance by far of stanching the organisation’s recent haemorrhaging of votes. While in recent years and months it looked like South Africa was heading for an opposition-led coalition government next year, Ramaphosa’s election may well see the ANC narrowly winning the 2019 elections.
Were he to emerge as South Africa’s President next year or sooner, Ramaphosa will have accomplished his long-held dream – which, in subsequent years, even he would have begun to think unattainable – and the ambition that democratic South Africa’s Founding Father, Nelson Mandela, had for him. After all, it was Ramaphosa that Mandela wanted to appoint Deputy President of the country when the latter became our Head of State in 1994, but he was strongly prevailed upon by those in the ANC who had been in exile to go with Thabo Mbeki, instead.
Cyril Ramaphosa, then, is a man in whom the saintly Madiba had lots of confidence.
His final election as ANC president has marked the end of a terrible chapter in our democratic era and the beginning of a new one. Unlike his predecessor, he is a constitutionalist who is actively championing good governance and a meaningful partnership involving the Government, business and labour. An astute businessman, he has placed a deserved emphasis on growing and transforming our economy.
Immediately after Ramaphosa’s election as ANC president, many commentators expressed legitimate concerns about the composition of the leadership surrounding him in the ANC top six. Some of the individuals surrounding him are not exactly known for their shining credentials as anti-corruption crusaders, and some have featured prominently in the recent Gupta-leak e-mails. They are, therefore, unlikely to share his enthusiasm to throw the book at those allegedly behind our rampant corruption.
I argued elsewhere at the time that, while legitimate, those concerns should not be exaggerated. I pointed out that the ANC leadership is made up of more than just the five men and one woman at the apex of the organisation. It also comprises the 80-member National Executive Committee (NEC), which is the highest decision-making body between conferences. I added that there are men and women on that structure who are just as keen to rid the organisation and the country of corruption and who would like to rescue whatever equity remains of Brand ANC.
The narrow margin by which Ramaphosa won the contest against Dr Nkosazana Dlamini-Zuma – who was volubly supported by some of the most disagreeable and controversial characters in our politics – also raised the understandable concern that there were almost as many delegates at the ANC’s 54th national conference who were opposed to him as those who supported him. It was understandable that some people would worry that Ramaphosa would not find the kind of support within his organisation that he needs to redirect the country’s fortunes.
While understandable, that concern ignored the fact that, according to various surveys conducted across the country in the run-up to the conference, the vast majority of ANC members in all nine provinces preferred Ramaphosa for the ANC presidency. The small margin of his victory was indicative of the determined efforts by those with vested interests who were threatened by the prospect of a Ramaphosa presidency, among them Jacob Zuma, who worked very hard to persuade as many ANC branches and delegates as possible not to support his candidature.
As I predicted at the time, now that a Ramaphosa presidency is a reality, many of those who were successfully lobbied against him have begun to turn their backs on Zuma, who is now yesterday’s man, and are actively seeking to be in Ramaphosa’s good books. In the weeks and months to come they will work even harder to ingratiate themselves to him and his fellow officials in order to improve their chances of deployment into cushy positions in government, the public service and State-owned companies.
As often happens in the ANC, in the coming months and years those to be elected onto the leadership of the various leagues – Women’s, Youth and Military Veterans – and provincial structures will most likely be made after the image of the leader. That means that, in the months and years to come, the number of overtly pro-Ramaphosa individuals in strategic positions within the ANC will increase, thus making it possible for him to re-orientate the organisation and, hopefully, to advance South Africa’s interests.
So far, Ramaphosa and his team have made a most encouraging start. Not only have they insisted on the prosecution of those against whom allegations of State capture and general malfeasance have been made, but they have also made wholesale changes to the Eskom Board of Directors, on the eve of the annual World Economic Forum gathering in Davos, Switzerland. They have made it abundantly clear to Zuma and his remaining defenders that the ANC leadership is the centre of authority, with Zuma and others in Government having to implement ANC policy.
In other words, although at the time of writing Ramaphosa was still Deputy President of the country and Zuma was President, there is no doubt at all that, as of 20 December 2017, Ramaphosa is Zuma’s boss – including in Government. For as long as he remains our Head of State, Zuma has to take instructions from Ramaphosa, as has happened in the case of the appointment of the Ngoepe judicial commission of enquiry into State capture.
Notwithstanding some controversial resolutions adopted at the ANC conference, such as on land restitution without compensation, there is no doubt in my mind that a Ramaphosa-led ANC will do everything possible to revive the economy and to forge a working partnership involving Government, business and labour. I am confident that he and his team will do everything possible to undo the damage done to South Africa by his predecessor and to win back the civilised world’s respect for South Africa.
There is a good chance, therefore, that, while correctly insisting on the need for “radical economic transformation”, the Government will be much more sympathetic to business’s concerns and more accessible for meaningful engagement. It is important that business should not be found wanting in this regard.
SEIFSA will, on its own and through Business Unity South Africa, take full advantage of the blowing winds of change in order to engage meaningfully with policy makers.
Kaizer M. Nyatsumba
Chief Executive Officer