President Cyril Ramaphosa has stabilised the governance of state-owned enterprises, making them more palatable to financiers. Prosecuting authorities are on the heels of those implicated in corruption and on Monday Ramaphosa appointed a formidable team to attract $100bn in investment.
The appointment of Trevor Manuel, Mcebisi Jonas, Phumzile Langeni and Jacko Maree was informed by dismal data on capital formation in SA. Total fixed investment as a percentage of GDP declined from 24% in 2008 to about 19% in 2017, with foreign direct investment dropping to R17.6bn over the period. The team is supported by Wits alumnus and Business Day columnist Trudi Makhaya, who has been appointed as the president’s economic adviser.
In societies that are deeply divided along class and racial lines there will always be differing views on the choice of candidates. However, this team is capable, experienced, globally networked and willing to serve.
How many could refuse a R600m offer from the Guptas, with the bonus of being appointed finance minister? Jonas did.
Manuel was written off by many in his early days as finance minister following his comment about the "amorphous market". However, like many leaders of the mass democratic movement of the 1980s, including Ramaphosa, his strengths are listening, consulting, learning and accounting.
With the Treasury team of Maria Ramos, current Reserve Bank governor Lesetja Kganyago and, yes, Brian Molefe, he was instrumental in taking SA from a speculative investment credit rating to a fully fledged investment grade. The Zuma regime rapidly reversed these gains from 2012.
How many could refuse a R600m offer from the Guptas, with the bonus of being appointed finance minister? Jonas did.
Through this act and many others, then public protector Thuli Madonsela was able to investigate and release her findings in the State of Capture report of October 2016. Jonas’s act inspired a number of South Africans, including journalists and academics, to follow his example. His act may have changed the course of SA’s democracy by reversing the gains of the state capturers and looters of national resources.
Maree is a successful banker who had a huge impact on my life as a Standard Bank employee, as well as many successful black entrepreneurs, such as Phuthuma Nhleko, Gloria Serobe and Owen Maubane. And Niven Pillay of Regiments, who has been associated — with Trillian and McKinsey — in state capture and corruption in state-owned enterprises. Amid scepticism about white entrepreneurs in the guise of white monopoly capital, Maree is among those who are committed to transformation.
Langeni was one of the first black women opinionistas on share price movements and macroeconomic indicators, domestic and international, who influenced many young black South Africans to pursue careers in the financial markets.
With Andile Mazwai, she bought into Barnard Jacobs Mellet Securities, and with Chief Lediga started Legae Securities, inspiring a number of black South Africans who had not been exposed to stockbroking.
Langeni is now a very successful businesswoman with Bongi Masinga in the commodity space and is connected to a number of financiers around the globe, adding enormous value to the investment team.
Makhaya and I were presenters at a workshop on the future of the South African economy hosted by EconRSA in November 2017. Like many South Africans at the time, we were concerned about the implications of a Nkosazana Dlamini-Zuma presidency and whether she would be bold enough to take a different course from the Zuma faction. She lost the election. Now Makhaya and Ramaphosa can together chart a new economic course. I am right behind her.
• Mondi is a senior lecturer in the Wits School of Economic and Business Sciences.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.