What’s keeping big business from engaging effectively with government, labour and other stakeholders? According to Cas Coovadia, new acting CEO of Business Unity South Africa (BUSA), it’s the lack of a unified voice.
He tells Alec Hogg and Gugulethu Mfuphi, on CNBC Power Lunch, that his priority is to rebuild the organisation and give it strategic direction. He intends to show the Black Business Council and Business Leadership South Africa that BUSA is the right organisation to liaise with government on cost-cutting and macro-economic issues.
Cas still thinks there’s a place for all these other business organisations. Nevertheless, collaboration is required if the collective voice of South Africa’s capitalists is to be heard in decision-making circles. Coovadia has got a big job on his hands: South African business organisations have been preoccupied with personality clashes and other tensions. – JC
Getting South African business unity back on track: Coovadia unveils plan to give big business a voice
To watch this video on CNBC’s Power Lunch click here
GUGULETHU MFUPHI: Managing Director of the Banking Association of South Africa Cas Coovadia has been appointed as the new acting CEO of Business Unity South Africa until the company finds a more permanent person to take over the position. For more now, we have Cas Coovadia on the line. He’s the Chief Executive of the Banking Association of South Africa. Cas, perhaps you can tell us what your responsibilities are, because I understand the word ‘caretaker’ has also been added onto your title.
CAS COOVADIA: Yes, and I want to emphasise that I’m still the Managing Director of the Banking Association of South Africa. I have absolutely no intention of leaving that. You will know that the BUSA CEO resigned. We’ve had significant problems with BUSA in that the organisation hasn’t actually positioned itself as a robust, but constructive representative of business on macroeconomic issues – different to what its constituent members actually do. The board of BUSA felt that what’s needed at this point in time, is somebody who has an institutional memory, who has the experience, and who is able to interact with business and government at a relatively high level. To position the organisation to understand what its members actually need, and then to package that so that it’s developed to a value-add in the role of business in this country. I’m simply going to be playing a role in structuring BUSA, positioning it, and giving it strategic direction. There’s a team working there, who will be doing all the work, but I’ll just be giving that sort of strategic direction and interacting with home I need to interact with to position it, so that when a full-time CEO comes in, the organisation is actually structured – itself – and positioned to play the robust and constructive role it should play.
ALEC HOGG: Cas, we’re looking forward to that but at the moment, BUSA is an oxymoron. It’s anything but unified business in South Africa. How are you going to address that issue? How are you going to get businesses to talk with one voice?
CAS COOVADIA: Look, that’s obviously an issue that we need to deal with. In this role, I’ll obviously be talking to people at Black Business Council. I’m not convinced. I’m not that fussed about a voice for black business if there are still issues in the economy that we haven’t resolved as far as unity is concerned, but I am convinced that that voice can actually be articulated to a single business organisation. I think business unity is obviously high up on the agenda. Certainly, my own view is that if I’m going to be talking to Black Business Council on issues relative to business unity and business – as BUSA is a body (and I’m convinced it is) – that should be the united voice of business, then I have to get things right in BUSA itself, first. I have to ensure that BUSA itself is well positioned, well structured, and is delivering on what it’s supposed to deliver so that I can talk with confidence to Black Business Council and say ‘look guys, let’s come together again’. We give you the assurance that some of the issues that have concerned you can actually be raised in a meaningful way and addressed through a single organisation, which should be business unity’.
ALEC HOGG: Yes, and it should be. We’re not just talking about the Black Business Council; what about Business Leadership South Africa? They’ve just appointed a whole new board. I met with Trevor Manuel this week on Tuesday. He said that one of his frustrations being on the government’s side, is that labour is pretty cohesive. He said business…they don’t seem to talk with one voice. You get all different inputs and as a consequence, business’ voice is not really properly heard.
CAS COOVADIA:Â [Audio interruption]
ALEC HOGG: Somebody hit the mute button there. Cas I think there’s a mute button on your phone that has been hit.
CAS COOVADIA:Â Hold on one second.
ALEC HOGG: There you go…you’ve solved it. You’re spot on, now.
CAS COOVADIA: Not a problem on my phone. Can you hear me now?
ALEC HOGG:Â We have you back now.
CAS COOVADIA: I agree with Trevor that business needs to have a more cohesive voice. I don’t think that means that business should have only one organisation. I think what we do need…there’s going to be a need for sectorial organisation, like for the Banking Association that deals with banking-related issues. What we need to ensure BUSA does…at the level at which we need to speak to government, engage with government and other stakeholders on cost-cutting issues and macroeconomic policy issues, BUSA needs to be that organisation. I think we also need to rationalise activity in business, and one of the things I’d like to do is meet with all the business organisations and say ‘National Business Initiative, you have the capacity and you’ve been working on sustainability and energy efficiency. You should have no reason why BUSA should be working like that’. That allows the institution to do that, so that even for funds or the clarity of what the organisation is doing…
GUGULETHU MFUPHI:Â Cas before you go, has the hunt for the replacement CEO begun?
CAS COOVADIA:Â Do you mean my role?
ALEC HOGG: No, are you in the process of looking for a new CEO? Has that started?
CAS COOVADIA: No, this announcement was just made yesterday. The current CEO is in office until the 28th of this month. I have not even sat down with the current CEO. I have not sat down with BUSA staff yet, to actually plan a programme. Part of that work is to actually start looking for a new CEO, and what processes have been put into place, but I haven’t started on any of that yet. The announcement was only made yesterday. The decision was only made this week.
GUGULETHU MFUPHI: Well, all the best for your endeavours – thank you so much. Cas Coovadia is the Chief Executive of the Banking Association of SA.
