ANNUAL REPORT - Busa

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1 JANUARY 2017 TO 31 DECEMBER 2017

ANNUAL REPORT

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ABBREVIATIONS AND ACRONYMS

Annual General Meeting................................................................................................. (AGM)

Association for Savings and Investment South Africa..................................... (ASISA)

Black Business Council.................................................................................................... (BBC)

Business Leadership South Africa.............................................................................. (BLSA)

Brazil, Russia, India, China and South Africa......................................................... (BRICS)

Business Unity South Africa.......................................................................................... (BUSA)

Commission for Conciliation, Mediation and Arbitration.............................. (CCMA)

Comprehensive Social Security.................................................................................. (CSS)

Congress of South African Trade Unions................................................................ (COSATU)

Continental Free Trade Agreement........................................................................... (CFTA)

European Free Trade Association............................................................................... (EFTA)

Federation of Unions of South Africa....................................................................... (FEDUSA)

Human Resource................................................................................................................. (HR)

Integrated Energy Plan.................................................................................................... (IEP)

Integrated Resource Plan............................................................................................... (IRP)

International Labour Organisation............................................................................ (ILO)

Memorandum of Incorporation................................................................................... (MOI)

Medium-Term Budget Policy Statement................................................................. (MTBPS)

National Council of Trade Unions.............................................................................. (NACTU)

National Development Plan.......................................................................................... (NDP)

National Economic Development and Labour Counci.................................... (Nedlac)

National Energy Regulator of South Africa............................................................ (NERSA)

National Minimum Wage................................................................................................ (NMW)

Southern African Customs Union............................................................................... (SACU)

Southern African Development Community........................................................ (SADC)

South African Federation of Trade Unions............................................................. (SAFTU)

Socio-Economic Impact Assessment........................................................................ (SEIA)

Sector Education and Training Authority................................................................ (SETA)

Small and Medium Enterprises................................................................................... (SMEs)

State-owned Entities........................................................................................................ (SoEs)

SADC Private Sector Forum........................................................................................... (SPSF)

Technical Sectoral Liaison Committee..................................................................... (Teselico)

Tripartite Free Trade Agreement................................................................................. (TFTA)

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Message from BUSA President........................................................................................................................ 4

Report from Audit and Risk Committee ……………………………………………….......................................... 7

Report from Remuneration and Nominations Committee………….................................................. 8

Report from Social and Ethics Committee ……………………………………………….................................... 9

Organisational Overview …………………………………………………………………………….................................... 10

BUSA Membership ……………………………………………………………………………………….................................... 27

Company Information …………………………………………………………………………………................................... 28

CONTENTS

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MESSAGE FROM BUSA PRESIDENT

The current political climate in South

Africa, the region and the rest of the globe

has necessitated greater co-operation

among businesses of varying sizes, across

all sectors, to move as one to navigate a

domestic environment underscored by low

economic growth and myriad challenges.

Now, more than ever, it is important for

business to adopt a proactive stance as it

seeks to unlock value in the economy, while

also confronting the social context in which

business operates and functions. It is, thus,

imperative to have a capable and credible

business voice anchored by a cohesive

strategy.

Jabu Mabuza Business Unity South AfricaPresident

It is against this backdrop that Business

Unity South Africa (BUSA) has cemented its

role as the apex organisation representing

business in the country. BUSA has achieved

this by actively working together with

its business partners and stakeholders,

as well as by collaborating with aligned

third-party organisations. BUSA has also

taken proactive steps to become more

effective and efficient in its efforts to create

a conducive operating environment for

business. These steps have yielded positive

results and seen BUSA reinforce its place

as the leading, unifying voice of business.

In the process, BUSA has made a positive

contribution to the South African economy

and helped address significant challenges

facing the republic.

The deteriorating state of governance in the

economy, crystallised by ailing state-owned

entities (SoEs) and a widening budget

deficit, captured the imagination over the

past year. During the course of 2017, more

and more revelations indicated the depth

and breadth of corruption linked to SoEs

and the government. Almost all had private-

sector counterparts. Business needs to take

collectively responsibility for its part.

There have also been new dynamics in the

labour space, giving rise to a greater need

for business to have a cohesive engagement

strategy for all sectors of the economy. As a

response to this, BUSA has led engagements

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with the government, labour and important

social partners through various forums,

most notably at the National Economic

Development and Labour Council (Nedlac).

BUSA’s targeted efforts and engagements at

Nedlac have succeeded in securing major

gains not only for the economy but also

for the country as a whole. These include

the historic agreements establishing the

framework for labour relations stability

and on the National Minimum Wage

(NMW). These agreements represent a key

milestone for BUSA, the government, labour

and social partners. They also demonstrate

and reinforce the efficacy of BUSA’s role as

the voice of business and chief driver of its

agenda.

Despite these important gains, however,

efforts to achieve unity between BUSA and

the Black Business Council (BBC) did not

yield the desired results. This attempt at

unity became impossible during the course

of 2017, when there was clear divergence

of purpose between BUSA and the BBC.

Regretfully, unification has not been

possible under the current circumstances.

BUSA nonetheless created momentum for

business by providing strategic inputs on

the country’s future energy planning and

resourcing, as well as made the case for

business in the budgeting process – both

bilaterally and at Nedlac. The high-level


task team convened at Nedlac to prevent

further sovereign credit ratings downgrades

yielded results, when the country retained

its last-remaining investment grade

rating. This was a joint effort by BUSA and

labour. This not only demonstrates BUSA’s

collaborative approach in finding lasting

solutions facing the country, but also its

role in identifying risks and optimising

opportunities for organised business.

Through the deployment of its 2017-

2019 Strategic Plan, which focused on 10

Strategic Objectives, BUSA will continue

to provide direction and clarity from a

business perspective in its engagements

with social partners on key issues.

Through the deployment of its 2017-2019 Strategic Plan, which focused on 10 Strategic Objectives, BUSA

will continue to provide direction and clarity from a business perspective in its engagements with social

partners on key issues.

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Notable among these is the BUSA-devised

Business Approach to Black Economic

Transformation and Inclusive Growth, which

provides a framework for realising the

dual and mutually reinforcing imperatives

of transformation and inclusive growth.

Transformation, or the lack thereof, is one

of the biggest ethical dilemmas confronting

business. The Approach realises this. It

flowed from internal BUSA engagements.

And also marks the first time business has

looked at the issue cross-cuttingly and

comprehensively. The Approach will form

the foundation upon which BUSA builds

on its role as a key stakeholder in creating

economic opportunities.

None of the abovementioned milestones

and initiatives would have been possible

without the BUSA Membership, which has

given impetus to the strategy.

I extend a word of thanks and appreciation to

my Vice-President, Mr Martin Kingston, who

has been involved in steering BUSA’s policy

work in relation to the Approach to Economic

Transformation, and in the Economic

and Trade Committee, which he chairs. I

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also extend thanks to Mr Kaizer Moyane,

the business convener at Nedlac and

chairperson of the Social Policy Committee,

for his capable service to BUSA. I extend

thanks, too, to the full Board, inclusive of

the chairs of its three committees: Mr Cas

Coovadia, Dr Laurraine Lotter and Mr Kaizer

Nyatsumba, who all have provided oversight

on BUSA strategy and its implementation

on behalf of Members. I also wish to thank

BUSA CEO Tanya Cohen and BUSA staff, who

have succeeded under testing conditions to

demonstrate the value and influence of a

collaborative and capable voice of business.

I also wish to announce that this is my last

Report as BUSA President. My term has been

both challenging and fulfilling. It has been

gratifying to see BUSA stake its rightful

place as the apex business organisation

in the country. Although much has been

achieved, there remains more work to be

done to capitalise on the gains achieved.

I wish my successor well in steering this

vibrant organisation into the future.

Jabu Mabuza

BUSA President

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REPORT FROM AUDIT AND RISK COMMITTEE

In the period 1 January 2017 to 31 December

2017, the Audit and Risk Committee has

overseen the following:

• Development of, and agreement on,

a comprehensive risk-management

framework, and ongoing review and

oversight of the framework

• Consideration of auditors for the 2017

financial year, with a decision accepted

by the Board and the annual general

meeting (AGM) to rotate auditors

and appoint Motlanalo Chartered

Accountants and Auditors Inc.

• More rigid monitoring on and application

of sanctions to non-paying Members,

as guided by the Memorandum of

Incorporation

• Recommendation of a three-year budget

to the Board

• Finalisation of the 2016 Audited

Financial Statements, for presentation

to the AGM

• The move to new office premises, to

ensure this occurred within budget or

with sound reasons for any budget over-

runs

• Review of budget

• Finalisation of the 2017 Audited

Financial Statements for presentation to

the AGM

• Process to consider a review of the BUSA

Membership fee structure during 2018

The committee has the skills to fulfil its

mandate and continues to note significant

improvements in the following:

• The financial performance and position

of the organisation. The Audited

Financial Statements for the year ended

31 December 2017, reflect a surplus of

more than R3-million, despite significant

increases in necessary additions to the

staff complement.

• Increase in Membership because of a

more relevant positioning of BUSA and

better interaction with Members.

• The finance management function at

BUSA has improved significantly during

the year, and the committee notes this

with appreciation.

• Management has dealt with all matters

pertinent to the committee during the

period.

Cas Coovadia

Chairperson: Audit and Risk Committee

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REPORT FROM REMUNERATION AND NOMINATIONS COMMITTEE During the course of 2017, the

Remuneration and Nominations Committee

ensured the implementation of a number

of operational procedures and systems to

fulfil its mandate. This is testament to the

fact that the committee continues to work

well.

The notable processes the committee has

overseen in the year under review include:

• Nominations to outside structures,

task teams and bodies, ensuring they

continued to be managed in line with

the Board-approved guidelines, with

every effort made to ensure BUSA’s

transformation objectives are met.

• The revised organogram, designed to

support achievement of the Strategy,

which was adopted and approved by the

Board. This has provided a framework

within which recruitment in support

of the Strategy could be implemented.

To this end, job descriptions and role

profiles have been developed for all

posts, and the recruitment, selection

and contracting process has been

enhanced. Performance management

agreements have been developed and

will be applicable to all staff once their

probationary periods are completed.

• Systems for leave management, salary

reviews and recruitment of new staff

are in place. And reports on these

issues are reviewed at every committee

meeting. As such, the committee

approved remuneration guidelines on

the management of salary reviews and

adjustments, as well as performance

bonuses.

The dedication of the sub-committee

members in carrying out their

responsibilities is acknowledged.

Laurraine Lotter

Chairperson: Remuneration and

Nominations Committee

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REPORT FROM SOCIAL AND ETHICS COMMITTEE

During the year under review, the Social

and Ethics Committee held four meetings

– on 1 August 2017, 31 October 2017, 6

February 2018 and 19 April 2018 – to deal

with matters related to the committee’s

mandate.

Nothing of concern was brought to the

committee’s attention.

The membership of the committee

largely remained the same, except for the

replacement of Ms Eugene Kula-Ameyaw

by Mr Christopher Campbell. Mr Campbell

attended one committee meeting.

The notable tasks the committee undertook

included:

• Drafting and initial approval of the Ethical

Code of Conduct, which is binding on all

BUSA staff and officers. The Ethical Code

of Conduct was subsequently approved

by the Board.

• Discussing and approving the Business

Integrity Pledge and the Contract

with South Africa, which were also

subsequently approved by the Board.

Kaizer M. Nyatsumba

Chairperson: Social and Ethics Committee

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ORGANISATIONAL OVERVIEW

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In the year under review, BUSA strengthened

its position as the principal representative

of business in South Africa. It gained

traction on a number of key policy areas;

while also raising its profile, and voice,

through a number of strategic interventions

and operational enhancements.

The development of BUSA’s Strategic Plan

2017-2019, ensured the organisation was

well-positioned for the year to focus its

work in line with cross-cutting Member

priorities. The Strategic Plan identified the

Policy and Efficiency Objectives for the

organisation, which formed the core of its

operational focus. The BUSA Board and

Board Committees exercised oversight on

and ensured the implementation of the

Strategy by monitoring deliverables on a

quarterly basis.

In addition to ongoing policy work, there

were a number of key highlights in 2017

that warrant special mention:

• The Business Approach to Black

Economic Transformation for Inclusive

Growth was developed following an

intensive Membership input process.

As the first cross-cutting position

on transformation for business, the

Approach has proved foundational

for BUSA’s policy work. It is also the

source of ongoing deliberations with

the government and representatives of

organised labour.

• BUSA was the business party to the

groundbreaking agreements at Nedlac

on the NMW and labour relations

stability.

• BUSA positioned itself at the fore of

energy issues by providing substantial

evidence-based submissions on the

Integrated Energy Plan (IEP) and the

Integrated Resource Plan (IRP). Through

the formation of three work streams

– focused long-term tariff trajectory,

financial sustainability and electricity

demand – BUSA engaged with Eskom

leadership. BUSA also actively lobbied

for consultation on the IRP.

TANYA COHENBusiness Unit South Africa CEO

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• BUSA consistently, and through multiple

forums and processes, enhanced its

influence in advocating for demand-

led skills development. This will

not only enhance competitiveness,

transformation and inclusive growth,

but will also bolster the country’s efforts

in addressing youth employment.

• BUSA was instrumental in the

establishment of a Sovereign

Downgrade Task Team at Nedlac,

which led to considerable influence

about reinforcing the need for

fiscal consolidation, highlighted the

challenges facing SoEs, and made the

case for good governance. The end-goal

was to ensure policy alignment and

to drive the imperative for combating

corruption.

BUSA responded speedily to unexpected

challenges which arose during the course

of 2017. These included taking leadership

for and on behalf of business in relation

to the cabinet reshuffles, the sovereign

ratings downgrades, and the emerging

reports about corruption and state

capture. BUSA responded accordingly

and appropriately by regrouping with its

Membership, which resulted in the design

of a position on Integrity in Business. The

position signalled BUSA’s commitment

to the principles of good governance and

was an acknowledgement that business,

too, needed to play its part in undoing the

harm brought on by the twin challenges of

corruption and state capture. The message

was well-received at the Annual Nedlac

Summit. As a further demonstration of

BUSA’s push for clean governance, the

organisation finalised an Ethical Code

of Conduct for staff, representatives and

service providers.

BUSA also made a number of efficiency

improvements, which enabled the

organisation to deliver more value to its

Members. These include improved line-

of-sight communication and engagement

on key policy issues for Members, as well

as human resource (HR), IT and financial

management, which have been augmented

and streamlined. Membership fee collection,

Following the Board decision to relocate to a more central

and conducive premises, a targeted location search was undertaken. The new BUSA

office was planned, designed and implemented with no disruption to operations in

November 2017.

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the organisation’s sole revenue stream, has

improved markedly, with all Members being

in good standing by the end of the financial

year.

Following the Board decision to relocate

to a more central and conducive premises,

a targeted location search was undertaken.

The new BUSA office was planned, designed

and implemented with no disruption to

operations in November 2017. Thanks to

the generous contribution by Business

Leadership South Africa (BLSA), Investec and

the Association for Savings and Investment

South Africa (ASISA), the installation of the

new office was successfully achieved within

a limited operational budget. Members and

stakeholders have responded positively to

the new location and facilities.

These highlights demonstrate the

progressive steps taken in 2017 to

enhance BUSA’s role as the apex business

organisation. This would not have been

possible without the concerted support

of the BUSA Membership and their

representatives, the Board, and BUSA staff.

I am grateful for the contribution made by

BUSA staff for having worked tirelessly to

support the success of the organisation.

BUSA has been fortunate to enjoy the

leadership of President Jabu Mabuza,

Vice-President Martin Kingston and Board

committee chairpersons: Laurraine Lotter,

Cas Coovadia and Kaizer Nyatsumba,

together with Nedlac convener Kaizer

Moyane. I thank them individually and

collectively, together with all Board

members for their contribution and

service to BUSA. This has enabled BUSA to

amplify and exemplify the call for ethical,

accountable leadership acting in the best

interests of the country.

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STRATEGIC AND GOVERNANCE HIGHLIGHTS

BUSA set about executing its three-year

2017-19 Strategic Plan, anchored on 10

Strategic Objectives, after its adoption

and approval by the Board on 2 March

2017. This followed extensive and rigorous

consultation with the Membership, as well

as the Economic and Trade, and Social Policy

committees.

BUSA Members engaged and contributed

to the development of the Strategic

Objectives through the policy committees,

meetings, surveys and electronic feedback.

This resulted in credibility and buy-in to

the Strategy. The Strategy was clearly

articulated and focused, providing a

framework and focus for work.

The BUSA Strategy was completed and

communicated to Members in March 2017,

soon after it was ratified by the Board.

This ensured BUSA undertook its work in a

manner that was transparent, accountable

and adhered to the principles of good

governance. This was supplemented by

BUSA’s Efficiency Objectives, which have

helped guide operational efficacy.

The Strategy provides a framework within

which BUSA undertakes its work, with a

particular emphasis on organisational

efficiency and effectiveness. This has been

a key tenet of ensuring BUSA remains the

apex organisation representing business

in South Africa, at a time which demands

a business voice that is responsive to the

current challenging operating environment.

A key milestone was the development of

the Business Approach to Black Economic

Transformation for Inclusive Growth, which

marks the first time that business has

formulated a policy position on the issue,

as well as put forward proposals to address

it. Crucially, BUSA Members and the Board

endorsed the Transformation Approach

document. It was distributed to the relevant

stakeholders and disseminated to the media

in June 2017.

The Strategy bears testament to BUSA’s

renewed focus on achieving operational

effectiveness by being more efficient

and targeted in its engagements with the

Membership and stakeholders.

BUSA also devised an Ethical Code of

Conduct, which was drafted in April 2017.

The Board approved it in August 2017, in

tandem with a Pledge and Contract with

South Africa that was approved at the

end of 2017. This is in line with BUSA’s

positioning on behalf of business, with an

emphasis on integrity and accountability

in both the public and the private sectors.

This has enabled BUSA to reinforce these

principles in policy. In addition, the Ethical


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Code of Conduct falls within the ambit of

the Efficiency Objectives.

The Board and Board committees have

been operating within the remit of BUSA’s

Memorandum of Incorporation. All meetings

were held with sufficient and due notice

given. All quarterly Board meetings and

Board committee meetings were held under

quorum.

The relevant documentation was supplied

and processed at all the Board meetings,

and all due processes were observed. Two

special Board meetings were held on the

cabinet reshuffle and on the Transformation

Approach.

This has all resulted in clear oversight,

focused on engagement and efficient

processes.

Again, the leadership of President

Mabuza and Vice-President Kingston has

enabled BUSA to deliver on its mandate

and, therefore, enhanced its credibility.

Furthermore, the support of the Board

committee chairpersons and Board

members has augmented BUSA’s influence

and enabled the organisation to represent

its Membership not only in a manner that is

accountable and capable, but also one that

is more responsive to their needs.

OPERATING HIGHLIGHTS

BUSA actively set about to become a more

efficient and well-resourced organisation.

During 2017, BUSA was able to streamline

its HR processes by putting in place a

number of interventions.

BUSA has concluded performance

agreements for all staff, processed payroll

effectively, ensured that leave records

are up to date, managed adherence to its

employment policies and procedures, and

made sure that career development plans

for staff are in place. Job profiles have been

streamlined, with salaries being better

aligned to job profiles and bonuses being

linked to performance. All recruitment

processes have been conducted by

developing appropriate job descriptions,

undertaking thorough interviews and

formulating proper contracting. BUSA’s

organisational design was updated

following a review and adjustment process

to help align it with the organisation’s

Strategy.

This has been achieved with the assistance

and support of a specialist HR provider

that is contracted to BUSA. The immediate

benefits flowing from these improvements

have been the attraction of new talent,

as well as the retention of staff, thereby

enhancing motivation in the organisation.


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In 2017, BUSA concluded the move to a new

IT service provider. This made BUSA’s entire

IT service cloud based. The new system has

the requisite security in place to protect

BUSA information. The service includes

maintaining the system and support on IT

software and hardware.

Through the deployment of its

Operational Plan, BUSA has secured new

service providers and managed its HR,

Parliamentary, IT and media contracts. This

has had a positive effect on service delivery.

The organisation identified its Parliamentary

presence as a key weakness and set about

to correct this by entering into an interim

arrangement with a Parliamentary service

provider during the course of 2017. This

provided a useful interim service and

enabled BUSA to identify the best model

for future Parliamentary services. To

this end, BUSA decided to insource the

function. The position will be part-funded

by BLSA, together with part-funding of the

Parliamentary Office with the Chamber of

Mines. This has enabled BUSA to retain the

premises at a reduced cost. The recruitment

process commenced in 2017.

As part of achieving its Efficiency Objectives,

BUSA sought to strengthen its capacity and

research funding by ensuring that its policy

work is substantiated by evidence and data.

Research was, however, not as widespread

as it should have been given the limited

capacity to secure funding, activate and

manage research within the organisation.

In this regard, research aligned to BUSA’s

needs was conducted. As such, BUSA has

concluded that it needs to establish a

separate governance structure and funding

for this end-goal.

In the period under review, BUSA introduced

weekly staff meetings and power-hour

sessions, at which the organisation

reinforced its Strategic Priority Areas.

During 2017, BUSA undertook the office

move to new premises. BUSA’s new office

premises have proved conducive to the

work of the organisation. The new offices

The results of BUSA’s renewed focus on being a process-

driven organisation, with an orientation towards efficiency

and effectiveness, are reflected in its management of expenses, which was done within budget, and the 97%

success rate in collecting Membership fees for the year.



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were identified to position BUSA more

suitably to perform its work, and to engage

with Members and stakeholders. Internal

floor, ceiling, electrical layout and furniture

planning were conducted, and necessary

legal contracts were entered into with

the pro bono legal input of Bowmans. The

move was carried out without disruption to

BUSA’s work.

The results of BUSA’s renewed focus

on being a process-driven organisation,

with an orientation towards efficiency

and effectiveness, are reflected in its

management of expenses, which was done

within budget, and the 97% success rate in

collecting Membership fees for the year.

Most importantly, BUSA achieved a

clean annual audit for the 2016 financial

year. Since then, the organisation has

strengthened its governance framework

through the adoption of and adherence to

its Delegation of Authority Policy, following

Board approval.

Furthermore, BUSA’s prudent financial

management has enabled the organisation

to secure additional resources to deliver on

its mandate and support its extensive and

exhaustive policy work.

Early in 2017, the BUSA website was

redesigned and updated as part of a

broader drive to update the organisation’s

brand. This reinforced efforts to maintain

consistent documentation and processes.

BUSA commenced with branding and the

new website development late in 2017. It

was made possible through sponsorship

secured from ASISA. The work conducted

in this respect was underpinned by the

Efficiency Objective of ensuring that BUSA

is the publicly recognised voice of business.

During the year, BUSA geared itself towards

building strategic relationships with key

media stakeholders, including business

editors and journalists. The process began

in April 2017 and monitoring of its efficacy

was done on a quarterly basis. As part of this

relation-building exercise, BUSA conducted

interviews, held a Business Approach

roundtable and had introductory meetings

with media houses. This area needs further

attention to enhance BUSA’s endeavour of

building a media identity.



BUSA achieved a clean annual audit for the 2016

financial year. Since then, the organisation has strengthened

its governance framework through the adoption of and adherence to its Delegation

of Authority Policy, following Board approval.

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BUSA was able to assert itself in press

coverage on the state of the nation address,

the budget and the Medium-Term Budget

Policy Statement (MTBPS). BUSA used this

platform to deepen its communication

about its policy priorities and core values.

BUSA spoke out about corruption, and the

need for ethical and accountable leadership.

As such, tone and coverage have improved.

However, more work needs to be done in

this area.

The Board Media Panel has been established

and it is functioning. In addition, a

communications company was engaged.

This assisted BUSA in its efforts to shape its

proactive and reactive communication on

priority areas during the course of 2017.

All the work undertaken and Strategic

Objectives accomplished would not have

been possible without BUSA team, working

closely with members whose dedication

has given impetus to the organisation’s

Efficiency Objectives and its Strategic Plan.

BUSA has delivered admirably, despite

limited capacity and a demanding workload.

Thanks are extended to the BUSA staff of

2017: Economic and Trade Policy Director

Olivier Serrao, Social Policy Director

Ditshego Tsebe, Transport Trade and

Logistics Manager Mbini Kutta, Economic

and Trade Co-ordinator Tyson Sibanda,

Social Policy Co-ordinator Phila Fakude,

Social Policy Manager Sino Moabalobelo,

Operations Manager Zelda Setladi,

Executive Assistant Nomaza Spelman,

Freddinah Kgasago and Mary Tshawe for

their dedicated and professional service to

BUSA.


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POLICY HIGHLIGHTS

The Business Approach to Black Economic

Transformation for Inclusive Growth marked

a major milestone for BUSA and formed

the bedrock of the organisation’s policy

work. The position paper was drafted in

the first part of 2017 with the input of the

Membership-based Transformation Think

Tank. Thereafter it was adopted, mandated

and launched, providing an overarching

and cross-cutting business position on the

transformation imperative. The Board and

the BUSA Membership gave the Approach

their seal of approval.

The Approach has had a significant

impact on BUSA’s focus, as it positions

the organisation credibly in terms of its

views on transformation, its commitment

to the country’s objectives and forms the

foundation of BUSA’s policy positions.

In this regard, transformation has been

incorporated into BUSA’s Strategic

Objectives. As such, the Approach guides

BUSA’s strategy and engagements with

social partners. Thus, the Approach takes

a proactive stance on transformation,

and recognises that collaboration among

business, organised labour organisations

and other social partners is fundamental to

achieve meaningful change.

BUSA has incorporated the Approach into

the Strategic Objectives to ensure the

organisation leverages the momentum

generated from the adoption and

dissemination of the position paper. In

addition, oversight by the Board, and the

planned incorporation of the Approach into

the Policy committees in 2018, will ensure

the Approach remains a living document

and that its objectives are pursued.

The position paper provides a diagnostic

of – as well as remedies to – the blockages

in the economy that have prevented the

realisation of the country’s developmental

and growth goals, as set out in the National

Development Plan. BUSA espouses the

ethos that a transformed and an inclusive

economy will not only foster growth, but will

also help engender transformation, whose

pace and depth has been insufficient.

The Business Approach to Black Economic Transformation for

Inclusive Growth marked a major

milestone for BUSA and formed the bedrock

of the organisation’s policy work.


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In line with the 10 Strategic Objectives,

and through the Economic and Trade, and

Social Policy committees, BUSA deepened

its work, notable of which is the following:

1. Crafted the Approach and embedded it

into BUSA’s core work.

2. BUSA considers small and medium

enterprises (SMEs) crucial in attaining

inclusive growth and is guided by an

evidence-based action plan in this

regard. BUSA started exploring options

to promote access to information on

financing for SMEs. BUSA has also

partnered with the Commission for

Conciliation, Mediation and Arbitration

(CCMA) to develop a web tool that

will assist small businesses on labour

matters. BUSA has also committed

itself to be conscious of how legislative

interventions might affect SMEs. At

core, BUSA wants to support access to

skilled people for SME management and

entrepreneurship.

3. As part of its efforts to ensure a

predictable, certain and enabling

regulatory environment, BUSA has

participated in Nedlac task teams and

Parliamentary engagements on a range

of legislative amendment processes. At

Nedlac, BUSA provided strategic inputs

to the Customs Fraud and Illegal Imports

Task Team and the Technical Regulatory

Agencies Task Team. In Parliament, BUSA

supported members on engagements

about the Liquor Amendment Bill,

POLICY HIGHLIGHTS

the Critical Infrastructure Protection

Bill, the Preservation of Land and

Agricultural Development Bill and the

Administrative Adjudication of Road

Traffic Offences Bill. BUSA has made a

concerted effort to ensure that Socio-

Economic Impact Assessments (SEIAs)

are central to these processes, both

at Nedlac and in Parliament to avoid

unintended consequences. BUSA is also

involved in ongoing deliberations and

engagements with the Department of

Performance Monitoring and Evaluation

to ensure that SEIAs are carried out in

all legislative development processes.

Through its participation in the

Sovereign Downgrade Task Team at

Nedlac, BUSA has raised and reinforced

the importance of methodical SEIAs.

4. BUSA has positioned itself as the

business lead with the government

and Eskom on energy, with the aim

to influence the IEP and the IRP.

The organisation is advocating for

affordable, reliable and sustainable

energy for the future. To achieve this

end, BUSA conducted comprehensive

research on the IEP and the IRP, which

formed the basis of BUSA’s submission

on the IEP and the IRP. The organisation

also had bilateral engagements with

the Department of Energy. Furthermore,

BUSA made a substantive, evidence-

based submission on Eskom tariffs

and engaged with the National


21 busa.org.za

ORGANISATIONAL OVERVIEW POLICY HIGHLIGHTS

Energy Regulator of South Africa

(NERSA) directly and through Nedlac’s

engagement with NERSA. These efforts

contributed to the 5.3% price increase,

instead of Eskom achieving its proposed

19.9% tariff hike. Significantly, BUSA

leveraged its presence in the Sovereign

Downgrade Task Team to advocate for

the constitution of a Nedlac Energy Task

Team, which would drive consultation.

5. BUSA led the business negotiations

that resulted in the groundbreaking

Nedlac agreements on labour relations

stability and the NMW. These include

the Labour Relations Stability Accord,

Code of Good Practice and Labour

Relations Act amendments. The historic

NMW Agreement was secured and

has often been cited as an example of

the country’s ability to reach a social

compact on a complicated issue. The

second round of NMW negotiations

on the legislative text resulted in a

compromise agreement, which was

satisfactory to business and subject

to exemption provisions taking into

account small and start-up businesses.

Parties secured a commitment to

engage at Nedlac in 2018 on the

NMW Regulations. BUSA’s involvement

in the Nedlac Labour Task Team has

ensured that it is able to influence the

policy process, to mitigate unintended

consequences. These accomplishments

in this strategic area are illustrative of

BUSA’s ability to lead inputs on high-

level processes. Credit Ratings Agencies

have acknowledged the progress and

inroads made in this area. The inroads

made here have also facilitated a change

of tone in labour relations. BUSA has

secured support from the International

Labour Organisation (ILO) and the CCMA

for capacity building initiatives that will

give effect to the agreements. However,

rollout has been delayed until the

enabling legislation is passed.

6. BUSA developed a consistent and clear

mandate on behalf of business. And

through work done by its Tax Committee,

made submissions to National Treasury

on the budget. This was done to support

BUSA’s advocacy for a progressive

tax system, which promotes inclusive

growth objectives. BUSA supplemented

its submissions on the budget, with

follow-up engagements at Nedlac with

the Minister of Finance and through

the media. In addition, BUSA followed a

similar process for the MTBPS. The need

to ensure fiscal consolidation to meet

the country’s expenditure requirements

bore considerable focus during 2017.

This was intensified after the cabinet

reshuffle and resultant political

uncertainty that contributed to the

sovereign ratings downgrades. BUSA,

together with social partners at Nedlac,

initiated the Sovereign Downgrade

Task Team at Nedlac, which ensured a

22 busa.org.za


sustained focus on the fiscus, including

the drain thereon because of poorly

managed and governed SoEs.

7. BUSA developed trade positions that

were considered favourably by the

government on the Tripartite Free

Trade Area, the Continental Free Trade

Area, Southern African Customs Union-

European Free Trade Association and

the Southern African Development

Community (SADC) Trade Protocol

Review. Through the Technical Sectoral

Liaison Committee (Teselico) and task

teams at Nedlac, BUSA monitored trade

developments and made a submission on

the business position on the extension

of the African Growth and Opportunity

Act. BUSA’s work on Teselico reinforces

the organisation’s positioning as a

credible and authoritative voice on

trade policy.

8. BUSA has played a key role in providing

input to the National Skills Development

Plan and the Sector Education and

Training Authority Review. BUSA’s

Education and Training Committee

developed a mandated position,

which it reinforced on a number of

public platforms, including the Heher

Commission of Inquiry into higher

education. BUSA also participated at

Nedlac section 77 engagements on

free higher education and the youth

platform. The organisation has been

in deliberations with Harambee about

co-operation on youth unemployment

and provided policy input to the Youth

Employment Service initiative. BUSA was

also involved in the ILO policy work to

influence the employer position on skills

and the future of work. Furthermore,

BUSA made meaningful contributions to

the SADC Private Sector Forum in order

to influence regional policy on work

permits, migration and skills.

9. BUSA started the legwork to

develop a unified business position

on an affordable and sustainable

Comprehensive Social Security (CSS)

framework. BUSA managed to collate

available evidence with support from

ASISA. BUSA continued to represent

business at the Nedlac CSS Task Team.

BUSA tracked developments in relation

to CSS, including social transfers.

Towards the latter part of 2017, BUSA

constituted a National Health Insurance

Task Team and Working Group. The

task team has commenced with

engagements at Nedlac. BUSA further

participated in the Nedlac negotiations

on the Compensation for Occupational

Illnesses and Diseases Bill during

the course of 2017. Parliamentary

developments in relation to the

Unemployment Insurance Bill were

monitored.

10. BUSA played a leading role in SADC and

represented business on a number of

international forums. The organisation

23 busa.org.za


represented business in the South

Africa Decent Country Work Programme,

co-authored the development of the

SADC labour law guide through active

participation in and support of the SADC

Private Sector Forum (SPSF). In all, BUSA

has been an influential participant in the

SPSF, Business Africa and the ILO. BUSA

leadership was part of World Economic

23 busa.org.za

Forum Africa. BUSA aimed to strengthen

participation in the Brazil, Russia, India,

China and South Africa (BRICS) Council

and nominated a representative on the

South Africa BRICS Business Council.

This will be strengthened as South Africa

will take over the BRICS Council chair in

2017-2018.

24 busa.org.za


MEMBER AND STAKEHOLDER HIGHLIGHTS

BUSA has embarked on regular and targeted

communication with Members through an

internal Bulletin that was delivered monthly

in 2017. This has improved Membership

value through line of sight of BUSA work.

Also, frequent, ad hoc communication from

CEO Tanya Cohen has been introduced.

The Membership has given positive

feedback to the monthly newsletter and

improved communication.

BUSA has maintained a Membership

database and distribution lists for Members

and policy committees, which it reviews and

updates on a quarterly basis. BUSA also held

meetings early in 2017 with each Member

to determine priorities and expectations.

In the period, BUSA ensured that it engaged

Members by communicating its Strategic

Priority Areas and reinforced them through

quarterly reports to the Board.

In addition, BUSA managed both its local

and international stakeholders through a

series of engagements and initiatives that

helped the organisation maintain visibility

and reinforced its role as an influential

social partner.

BUSA was able to accomplish this feat by

mapping stakeholders, identifying policy

and organisational priorities. These set the

tone for the organisation’s significant reach,

despite limited resources.

In this regard, the Stakeholder Engagement

Plan was implemented to maintain, nurture

and build strategic relationships. This was

done on a quarterly basis. This resulted in

meetings being held with Minister Malusi

Gigaba, who was at the time at the finance

portfolio, Trade and Industry Minister Dr

Rob Davies, and an introductory meeting

with former minister Hlengiwe Mkhize, who

was higher education and training minister.

25 busa.org.za

During 2017, BUSA also had Nedlac

engagements with then-Deputy President

Cyril Ramaphosa, Ministers Pravin Gordhan

and Gigaba (both former finance ministers),

Economic Development Minister Ebrahim

Patel, Labour Minister Mildred Oliphant,

former public works minister Nathi Nhleko,

Health Minister Dr Aaron Motsoaledi, former

social development minister Bathabile

Dlamini and Small Business Development

Minister Lindiwe Zulu.

In terms of bilateral and joint engagements,

BUSA engaged with the COSATU, NACTU,

FEDUSA and SAFTU with a view to conduct

more.

ORGANISATIONAL OVERVIEW MEMBER AND STAKEHOLDER HIGHLIGHTS

In period under review, BUSA managed to

maintain an international presence and

influence on various forums by leveraging

international affiliations and partnerships.

This was achieved through BUSA’s active

involvement in SADC and the BRICS Labour

Task Team. These efforts were rewarded

when a BUSA nominee was appointed

to BRICS. BUSA has also been active on

SPSF and in Business Africa, as well as

represented South Africa at Business Africa

and ensured participation in the ILO.

26 busa.org.za

LOOKING AHEAD

The Strategic Plan 2017-2019 and the

Efficiency Objectives will continue to

guide BUSA’s efforts to strengthen its role

as the apex organisation representing

business in South Africa. BUSA will deliver

on this mandate by being mindful of the

imperative to be an efficient and effective

organisation that is responsive to its

Members’ requirements.

During the course of 2018, BUSA will:

• Review the Strategic Plan to ensure that

it is relevant and responsive.

• Ensure that the Economic

Transformation Approach remains

front and centre of BUSA’s policy work,

alongside intensifying the work on each

of the Strategic Objectives in a relevant


and proactive manner.

• Focus on leveraging its influence in

South African, regional and global

policy, with a focus on ethical and

accountable business.

• Capitalise on its Parliamentary presence

to feed into the work the organisation

does at Nedlac, ensuring better co-

ordation on cross-cutting business

issues.

• Improve the organisational capacity to

perform its work

• Launch its new branding and website.

• Deliver membership value through

regular interaction with members on

issues of cross cutting business interest.

Tanya Cohen

Chief Executive Officer

27 busa.org.za

BUSA MEMBERSHIP

ChambersSBISouth African Chamber of Commerce and Industry

CorporatesBLSAManufacturing Circle

ProfessionalBatseta Council of Retirement Funds SAConsulting Engineers South Africa South African Private Practitioners Forum

UnisectoralAgri SAAgricultural Business Chamber Aluminium Federation of South Africa Apparel Manufacturers’ of South AfricaASISAAutomobile Manufacturers Employers Organisation Banking Association South AfricaBevSABoard of Airline Representative Association Casino Association of South Africa Chamber of Mines of South AfricaChemical and Allied Industries’ AssociationConfederation of Associations in the Private Employment SectorConsumer Goods Council South AfricaEmployers Organisation for Hairdressing Cosmetology & BeautyFishSAHealth Funders Association Hospital Association SAMaster Builders SA National Association Automotive Component & Allied Manufactures

National Association of Automobile Manufacturers of South Africa National Clothing Retail FederationPublishers Association of SA Retail AssociationRetail Motor IndustryRoad Freight Employers AssociationSouth African Insurance Association South African Petroleum Industry Association South African Property Owners Association South African Vehicle Renting Leasing AssociationSteel and Engineering Industries Federation of South Africa Tourism Business Council of South Africa

Board of Trustees (Corporate Members)ABSA BankAnglo Gold AshantiBMW South Africa (Pty) LtdClicks Group LimitedDeloitteDiscovery HealthInvestec LtdLiberty HoldingsMTN (Pty) LtdNissan South Africa (Pty) LtdPPCPricewaterhouseCoopersRothschildSAB LimitedSanlam Life Insurance LtdSAPPI LtdSasol Group ServicesShell South AfricaTransmanVodacom

28 busa.org.za

COMPANY INFORMATION

Business Unity South Africa

National Office

2nd Floor, 61 Katherine Street, Sandton

P.O. Box 652807, Benmore, 2010

Tel: +27 11 784 8000

Email : [email protected]

Website : www.busa.org.za

Registration Number : 2014/042417/08

PRESIDENT : Jabu Mabuza

VICE PRESIDENT : Martin Kingston

CHIEF EXECUTIVE : Tanya Cohen

NEDLAC CONVENER : Kaizer Moyane

DIRECTORS:

Angela Dick

Cas Coovadia

Christo Botes

Dumisani Radebe

Eugenia Kula-Ameyaw

Gwarega Mangozhe

Kaizer Nyatsumba

Laurraine Lotter

Leon Campher

Roger Baxter

Stavros Nicolaou

Vusi Khumalo

29 busa.org.za

1 JANUARY 2017 TO 31 DECEMBER 2017ANNUAL REPORT

ANNUAL REPORT - Busa

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Transcript of ANNUAL REPORT - Busa