Business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso has said that business confidence is growing on the back of the announcement of the new government of national unity (GNU) Cabinet.

“Since its announcement a week ago, Cabinet has already brought new energy to government. I have been encouraged by the speed with which several new Ministers have embraced their roles, engaging with the staff of their departments and with the public.

“We’ve seen important public announcements from the new Ministers in the departments of Trade, Industry and Competition, Home Affairs, Public Works, Basic Education and others. I’ve seen enthusiasm and an immediate focus on the right issues that are key to making a difference for the country, from visa reform to fixing basic literacy and numeracy,” she said in a newsletter on July 8.

Mavuso stated that what she has heard so far is good for business confidence, which is one of the key ingredients needed to get the economy growing again.

When President Cyril Ramaphosa announced the Cabinet, he stated that it was time to serve the people of South Africa rather than play party politics, which is a sentiment that Mavuso stands behind.

“Party politics must not be allowed to interfere with a focus on delivery as a coherent and effective Cabinet. This principle must also underpin the way we in organised business work with, and expect delivery from, the Cabinet. We must praise success and engage on challenges, no matter what the party colours of the Minister,” she said.

Mavuso added that business could do much to support the new government, noting that the previous administration also did good work on many fronts to establish a reform agenda to confront the country’s most pressing economic challenges.

“The progress made in electricity, logistics and crime, among other issues, has been helped by effective partnership with business. The private sector has skills and experience that can fix blockages and help ensure delivery. The new Cabinet can rely on us to always be available for meaningful dialogue.

“We are committed to being proactive partners, bringing skills and experience to the table to help unlock challenges and ensure we achieve progress. We have many common goals, South Africa’s economic wellbeing being the most obvious. We are here to help find solutions to any obstacles that stand in the way of achieving those goals,” she said.

Mavuso added that there was much to look forward to in terms of engagements at a provincial level following the finalisation of negotiations, with coalition governments for the first time in three of South Africa’s nine provinces.

In the case of Gauteng and KwaZulu-Natal particularly, the two biggest contributors to the national economy – accounting for almost 50% between them – she believes business has a clear interest in seeing success.

“While it is critical that the GNU is stable and focused on delivery at national level, it is no less important at provincial level. Provinces are responsible for a large part of national spending. In critical areas like education and health, it is the provinces that lead delivery. Business is eager to see delivery improvements and we will support provincial governments where we can,” Mavuso said.

She added that it would be critical for coalition partners in the provinces to similarly focus on the public interest and delivery, leaving aside party politics.

“The negotiations are done and it is now time for hard work,” she said.

Mavuso acknowledged that the new administration would need to navigate differing viewpoints and priorities. However, she asserted that, when conflicts arise on the correct course of action, the right way to work through them would be to rely on the evidence.

“Everyone will have beliefs about what works and doesn’t work, but what matters is pragmatism, undertaking research, testing new ideas, and embracing the course of action that will best deliver for the country. That Is how to foster confidence which will in turn lead to investment and expanded economic activity,” she said.

Mavuso urged the business community to guard against any uncertainty that may emerge if the government, at both national and provincial levels, is seen as uncertain and unpredictable.

“That will damage confidence and take us backward, forcing investors and businesses to pause investment. Those risks grow when parties are not committed to a common course of action based on clear policies and reliable time frames for regulatory change. Unity and pragmatism are going to be critical, based on transparency and mutual respect,” she said.

Mavuso expressed hope that mutual respect and pragmatism would characterise the relationship between business and the new administration.

“Our new Ministers have started on the right foot and I am optimistic about what they can achieve. I look forward to engaging with them as they set out their agendas and begin to implement. Ultimately, delivery is what matters, including creating an environment for business to invest and grow employment and the economy,” she said.