EDITORIAL: A blow to SA’s organised business

SA’s brave business sector is poorer. This week alone it lost two of its leaders. First, it was Sam Motsuenyane, and then the country woke up to news that Thero Setiloane had passed on. 

Of his many achievements, Motsuenyane, who is widely regarded as one of the founding fathers of black business, helped found two emblematic institutions: the National African Federated Chamber of Commerce and Industry (Nafcoc) and the African Bank.

Both institutions are still standing today, but could have been far ahead had they been blessed with Motsuenyane’s calibre of leadership.

Nafcoc has been weakened by factional battles linked to money. The battles started after 1994 when Motsuenyane’s generation made way for the new generation.

The fights were mainly over proceeds from lucrative investments the organisation, through its business arm, Nafhold, had made in some of SA’s leading assets. A brief period of leadership stability and legitimacy was experienced when billionaire Patrice Motsepe held Nafcoc’s presidency.

Not only did Motsepe inject his own money, he also used his influence to open doors for thousands of Nafcoc’s members. Government and established businesses took black business seriously during that period.

After 1994, Motsuenyane became an MP and, later, SA’s ambassador to Saudi Arabia. Before choosing farming as a career, he was asked by the ANC to investigate human rights abuses within its ranks. Such was his stature in SA’s public life.

With his peers, he helped found African Bank. More than a decade ago, the bank collapsed thanks to reckless lending, poor leadership and veering off its core mandate. It was placed under curatorship, and saved by the Reserve Bank and commercial banks.

It is now back on its feet under new leadership. The central bank is selling its stake and returning to its role as a regulator. The bank, which also lost director Ashley Mabogoane a year ago, has bought two smaller lenders as part of its build-back strategy.

Fortunately, Motsuenyane was alive to see its resuscitation.

Setiloane, a respected business executive and director of companies, left a thriving corporate career to run a newly repositioned SA Foundation (later renamed Business Leadership SA or BLSA), becoming its first black CEO after the late Michael Spicer.

Under him, big business found its voice. It ditched its softly-softly approach to an increasingly anti-business government.

When Jacob Zuma, then president, went rogue as head of state, outsourcing governance to his Gupta friends, it was up to BLSA to speak up for business. Two issues would test Setiloane: first, state capture was getting brazen after the Guptas landed in Waterkloof; and, second, Zuma fired Nhlanhla Nene as finance minister.

Setiloane acquitted himself well in both challenges. He led his members — more than 80 CEOs of big companies — to rally behind Pravin Gordhan, who was reinstated as finance minister. He created safe space for big business to speak truth to political power.

His successors, Bonang Mohale and Jabu Mabuza, respectively CEO and chair of BLSA, raised this a notch.

Regrettably, Cyril Ramaphosa’s ascension to power in February 2018 effectively demobilised business and the latter, erroneously, believed his administration would be a panacea to all of SA’s socioeconomic ills.

Only a more engaged business sector would pay modest tribute to Setiloane and Motsuenyane’s legacies.