CEOs to meet Zuma after erosion of trust

Cape Town – The CEO Initiative said it will meet with President Jacob Zuma after the erosion of trust caused by the removal of Pravin Gordhan as finance minister, which hampered progress in their partnership with government.

READ: Gordhan axing a severe blow for economy - CEO Initiative

The CEO Initiative was established at the request of Zuma, as part of a partnership within which government, labour and business worked together to achieve higher levels of inclusive growth and shared prosperity, as well as to avert sovereign rating downgrades.

READ: Downgrade: Our people will be worse off - CEO Initiative

“The initiative believes that recent events – and the ratings downgrades that followed – have eroded trust, making further progress in this partnership more difficult,” the group, led by Telkom chairperson Jabu Mabuza, said in a statement on Thursday.

However, it said it will work towards agreeing a framework of engagement that will facilitate rebuilding a solid working relationship with government.  

“We will meet with the president to agree the modalities and terms of engagement going forward,” it said.

Treasury will find a way to engage with business leaders

Retired deputy director of Treasury Andrew Donaldson told Fin24 this week that he believes the engagements will get going again.

“There will be different forums and stakeholders working together,” he said. “There is no other way forward. (Finance Minister Malusi) Gigaba has said he will engage with business and labour leaders.

“The initiative of Treasury working with the business sector and unions got under way 18 months ago,” he said.

“You can’t develop and grow the economy as the state alone. This needs in-depth cooperation with other stakeholders, including national, regional and local initiatives.”  

Gigaba told investors in April that it is in the interest of all stakeholders – government, business, investors, labour and civil society – to help unlock South Africa’s “enormous potential and create a better life for all”.

He said he will continue and intensify government’s efforts “to work in close collaboration with business and social partners on practical initiatives”.

CEO Initiative remains committed to SA

The CEO Initiative said it has engaged with various stakeholders over the past month to determine the best course of action in these circumstances.

“We remain committed to South Africa and will continue working together towards achieving a more inclusive and faster-growing economy for the benefit of all who live in our country,” it said.

“We will focus on preventing further credit rating downgrades, especially of debt issued in local currency – the greatest portion of the country’s borrowings – as this would have a significant detrimental impact on all South Africans.

"We will also work to restore our investment grade credit ratings over time.

“The initiatives started before the change in finance minister have continued. These will enhance growth and provide employment opportunities at a time when the country urgently needs more growth and new jobs.”

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