Business groups struggle to unite under voluntary system
Your recent editorial opinion again highlights the need for a stronger voice for business in this country on key policy issues (“Business must unite behind SA’s Agoa’s case”, May 27).
I addressed this in my 2018 book Good Capitalism, Bad Capitalism — the Role of Business in South Africa, which outlined the extent to which the multiplicity of apex or multi-sectoral business bodies prevented them from maximising their impact on the course of events.
Apart from historical perspectives, organised business in South Africa is based on the principle of voluntarism, with the attendant pervasive “free rider” phenomenon contributing significantly to the challenge. Several previous efforts to rationalise organised business at the national level have grappled unsuccessfully with this reality, partly in an effort to respond to a former president who appealed to business for “one telephone number to call”.
Globally, there are basically two organised business models in existence that create a voice for business. The one is the continental model, which is a public law prototype to which all business is compelled to belong. It eliminates the “free rider” problem, which then empowers such structures to speak with a more united and stronger voice.
The other is the Anglo-Saxon model, based on voluntarism, which emerged in the UK and was exported to its previous overseas possessions such as South Africa, Australia and the US. The Anglo-Saxon model preserves the freedom of individual business to join and independence to establish any structure it prefers. The downside here is that it allows too many weak links in the organised business network — all clamouring for official attention — with too many gatekeepers and gateways.
Trade unions have a regulatory framework that governs their existence but does not limit their policy agenda or ability to act. However, there is no easy solution to the historically driven turf problems in organised business. There is also likely to be strong disagreement as to whether the South African system should move in, say, the French-German direction. There will be outright opposition from many business people to the adoption of mandatory membership and statutory levies.
But it is also clear the existing organised business landscape in South Africa is sub-optimal and not serving either the business community or the national economy well enough. Yet even within the constraints of voluntarism, there remains much scope, such as through Business For South Africa, for a more effective voice on key issues such as the future of the African Growth & Opportunity Act.
Prof Raymond Parsons
North-West University Business School
Nothing cheers one up in the morning like Business Day
Opening your newspaper the other morning over my coffee and cornflakes, my eyes fell on the book reviews as a welcome antidote to the usual flood of depressing news about our country (“Five local novels to add to your reading list”, May 28).
You reviewed five books, which in summary dealt with: the rape of a young girl; family dysfunction and social cruelty; kidnapping and gang warfare; an electrocuted father; and a girl dealing with a bedridden mother and sick brother, and a cross-border criminal network.
After this I turned back to the news with great relief. Corruption, stealing, incompetence and Phala Phala seemed positively cheerful in comparison.
So, thanks for cheering me up.
Jonathan Schrire
Via email
Joburg’s financial plan is political optics
Johannesburg’s 2026 financial recovery & expenditure plan raises serious concerns about the municipality’s fiscal sustainability and governance capacity.
At a time when residents are already under immense economic pressure due to rising living costs, unemployment and deteriorating municipal services, the city continues to present ambitious commitments that appear disconnected from operational realities on the ground.
The projected revenue target of R90.4bn is difficult to reconcile with the city’s ongoing billing crisis, declining payment culture, infrastructure failures and weak revenue collection systems. Without meaningful reforms in governance, expenditure control and financial management, these projections risk becoming unrealistic targets rather than achievable outcomes.
The city’s financial challenges are not only technical but also political. There appears to be a lack of political will to enforce accountability, improve performance management, and decisively deal with inefficiency and wasteful expenditure within the administration.
Many of the announcements made by the MMC for finance sound more aligned to election positioning ahead of the November local government elections than to a credible and implementable recovery strategy. Residents and businesses require certainty, stability and measurable delivery outcomes, not political messaging packaged as financial planning.
Equally concerning is the continued neglect of historically disadvantaged communities such as Alexandra and Ivory Park. There remains little clarity on sustainable infrastructure investment, housing delivery, economic inclusion and long-term urban renewal in these areas.
Johannesburg remains the economic hub of South Africa, yet persistent governance failures continue to undermine investor confidence, economic growth and service delivery. The city requires a realistic financial plan grounded in accountability, infrastructure maintenance, efficient revenue collection and disciplined expenditure management.
Residents and the business community deserve a city administration that prioritises delivery over political optics.
Tsepo Mhlongo
Orlando East
Kudos to inspector for pointing out workplace safety lapse in parliament
On May 27 I attended a meeting where reports from the Unemployment Insurance Fund (UIF) were presented covering many of its functions, including health and safety at the workplace. The deputy employment & labour minister was also in attendance, accompanied by senior officials from the department.
While we were getting a rundown on some of the deficiencies in the UIF, one of the senior inspectors glanced out of the window in the parliamentary precinct and asked the chair to stop the proceedings so everyone could watch the workmen working on the parliamentary building, which is in the process of renovation after having burnt down.
It was quite a sight to behold. There was a labourer dangling from the roof on a piece of rope without any protective gear or harness. This was in full view of the portfolio committee that oversees the department of employment & labour and most of the senior staff entrusted with health and safety in the workplace.
I’m not sure what has transpired from there, but kudos that senior official.
Michael Bagraim, MP
DA employment & labour spokesperson
JOIN THE DISCUSSION: Send us an email with your comments to letters@businessday.co.za. Letters of more than 200 words may be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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.