HERE we are at it again. We seem to have mastered this one-step-forward-three-steps-backwards game in our quest for meaningful economic transformation.
Last week the National Empowerment Fund (NEF) raised eyebrows when it claimed that its research showed that only 3 percent of companies listed on the JSE were black owned and controlled. Put another other way, what the NEF research says is that black people, who comprise more than 90 percent of the population, can only make decisions and influence policy direction in less than 97 percent of the companies listed on the JSE.
I am not sure at how the NEF came to this assertion, except I know it has been backed by President Jacob Zuma. I was still trying to make sense of these statistics when news filtered in that Sizwe Nxasana, FirstRand chief executive would step down in September.
Nxasana probably felt after five years at the helm he had done his bit, having grown the bank’s market capitalisation nearly three-fold and making it Africa’s largest bank by market value and earnings. He will be replaced by his deputy, Johan Burger. From his CV, Burger seems like one hell of a guy – he has been with the bank for more than 25 years.
Complexities
His understanding of the complexities that govern the inner world of the banking industry is certainly above average, well above simple minds like ours whose best interaction with banks is reduced to trivials such as deposits, withdrawals, some bank charges and an overcharged debit order.
There is nothing wrong with his appointment. But I cannot help but wonder why FirstRand could not find a suitable black person to succeed Nxasana: not among more than 43 million black South Africans who call this beautiful land home; not among the 4 million or so other Africans – like MTN Group chief executive Sifiso Dabengwa and Lonmin’s chief Ben Magara – who have descended on these shores to make a living with requisite credentials to change the look of South Africa’s corporate face; not among senior executives in the public sector and parastatals, from where Nxasana was plucked; not even among the throngs of Kaizer Chiefs supporters who watched in disbelief when referee Zolile Mthetho turned down a good shout for a penalty on Saturday.
But all told, the FirstRand Group is not alone in believing that economic transformation is better left to politicians and others who see it as an imperative. Two years ago, the Standard Bank Group missed an opportunity for change when it introduced the new phenomenon in authority, appointing Sim Tshabalala to co-govern with Ben Kruger after Jacko Maree stepped down as chief.
This move was interpreted by some as a vote of no-confidence in Tshabalala’s ability to lead despite being with the bank for more than a decade. Except for Maria Ramos of Barclays Africa Group, the banking industry is in the hands of white males, and the news from last week means this is unlikely to change anytime soon.
Patronising
The same goes for the construction industry, which smiles as it lands yet another deal whenever another building graces our skies in most of the cities. The usual suspects chuckle as they land the bigger chunk of the slice.
And what about the retail industry? It remains as it was before 1994.
Except for a few and patronising tokens of joint ventures with black farmers, the agricultural sector remains largely untransformed, with one of its branches still retaining the old Transvaal Agricultural Union name with scant regard for what is happening around it.
But we are all to blame for this one-step-forward-three-steps backwards game. That it took until last week for Zuma to appreciate the skewed nature of ownership of our economy, albeit using the JSE as a proxy, leaves a lot to be desired. It is also an indictment on the black intelligentsia.
Instead of setting the public discourse on economic transformation, it has obsessed itself with finding fault on everything that Zuma says or does not say. At this rate, Zuma has become the weapon of mass distraction.
Even the government continues to pump most resources into the hands of this powerful white but minority male domain.
Without co-governing the corporate sector, the government needs to use its financial muscle to walk the talk and do business with people who are prepared to help it realise its transformation agenda. Soon the country will celebrate 21 years of the new dispensation, yet efforts to transform corporate South Africa remain woeful.
But perhaps all is not lost. Last week I spoke to Cosatu’s Patrick Craven about the government’s sudden change of heart on digital terrestrial TV. In his inimitable British accent he said: “Better late than never.”
Perhaps in time, we would be wise to heed Craven’s advice. We need more Nxasanas, Dlaminis, Mofokengs and Motsamais in the C-suites of our corporate world.
Sechaba ka’Nkosi is Business Report’s assistant news editor and senior reporter.