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14 February 2023 | Story Prof Sethulego Matebesi | Photo Sonia Small
Prof Sethulego Matebesi
Prof Sethulego Matebesi is an Associate Professor and Head of the Department of Sociology at the University of the Free State (UFS).

Opinion article by Prof Sethulego Matebesi, Associate Professor and Head of the Department of Sociology, University of the Free State.
A maxim says it is not enough to know that people have made mistakes; we need to understand why they made the mistakes if we hope to prevent them or others from making the same mistakes.

While South Africans are still trying to make sense of the many lofty promises made about measures to deal with the catastrophic energy crisis over the past four years, unsurprisingly, the restoration of energy security also dominated the 2023 State of the Nation Address (SONA).

Still, the reasons behind the failure of past intervention measures and progress with restructuring the state’s energy utility, Eskom, remain a mystery.

There is enough cause for concern over Eskom’s stance that an ageing fleet of coal-fired power stations that consistently break down is one of the reasons for load shedding. What happened to planning? No wonder the need to achieve quick success in resolving the energy crisis has placed a premium on maintaining citizens’ trust. As a result, the government proposed new initiatives to address the insecurity of the electricity supply by declaring a state of emergency to avert a complete blackout and appointing a new Minister of Electricity within the presidency to lead the government’s short-term energy crisis response. 

President Cyril Ramaphosa has already indicated that the criticism of the Minister of Electricity’s position is misguided. In other words, from the government’s perspective, the impact of its decisions does not matter. To South African citizens, however, it matters a great deal as they have borne the burden of load shedding and the rising cost of living. Above all, those who can cushion the blow of the energy crisis will want to see that the maximum value for public money is achieved.

The energy crisis has been the subject of fierce arguments over the past few years. So too, have deliberations on the government’s capability to deal with the crisis. And although the precise impact of the state of disaster, which began with immediate effect after its announcement in the SONA, cannot be determined at this stage, it is not premature to believe that the energy crisis will become a high-stake bidding game during the 2024 general elections. 

From the responses of the African National Congress (ANC) parliamentarians and alliance partners, one gets the sense that they sincerely wish there could have been a less dramatic option for the electricity minister, who has been touted to serve merely as a project manager.

Disastrous decisions are a recipe for catastrophic events

There has never been a time in South African history since 1994 that our presidents have not faced one scandal or another. After having temporarily thwarted the Phala Phala saga and emerging victorious as leader of the ANC at the 55th National Conference in December 2022, one would assume that President Ramaphosa would have assimilated the lessons from past events.

The post-SONA 2023 political landscape points to a challenging year for Ramaphosa. It is a truism that an organisation’s culture is determined by its leader. And since politics is not an exercise in objectivity, it is for this reason that several expected decisions by President Ramaphosa will determine how he will navigate between being regarded as a heroic figure and a victim of political persecution.

Objectively, it is hard not to agree with critics that a state of emergency will open the floodgates of collusion and corruption, which are distinct problems within South African public procurement. At this point, one wonders if this is not yet another gimmick to extend the patronage network of the presidency.

Another major decision facing President Ramaphosa is the much-anticipated cabinet reshuffle. Deputy President David Mabuza’s announcement that he resigned, only to be asked by the presidency to hang on, provides fascinating insight into how difficult it can become to exercise what some may regard as the mundane task of replacing cabinet ministers. And looking at the organisational footprint of the ANC, I reckon President Ramaphosa will avoid a situation where a cabinet reshuffle becomes another political hot potato from within his own organisation.

There is a fierce power war waging within the ANC. As a result, time will tell whether the president will be brave enough to replace poor-performing ministers instead of using proxies such as the new Minister of Energy. 

And to be clear – why we fail to confront underperforming ministers and public servants is a vexing question.

Indications are that there seems to be no aversion to brevity when it comes to political expediency, but to live up to the responsibility of accelerating structural reforms that significantly impact the country’s growth trajectory positively and reduce policy uncertainty. Continuing to routinely neglect these obligations is bound to create a more extensive trust gap between the government and citizens.

News Archive

Guest lecture: Mr Pretorius, CEO of McCarthy Limited
2004-11-05

The challenges facing business leaders in a rapidly changing South Africa

“The world we used to know does not exist anymore. Leaders are continually dealing with crisis and opportunities, in a high-pressure environment,” said Mr Brand Pretorius, honorary professor from the University of the Free State , delivering his 13th guest lecture on the challenges facing business leaders in a rapidly changing South Africa .

Mr Pretorius, CEO of McCarthy Limited, identified certain trends which are responsible for changes to the South African business environment. He said the South African business environment is ever-changing, fast moving, complex and unpredictable. “As business people we have to deal with the impact,” he said.

“Years ago we were globally isolated. Now we live in a shrinking borderless world with crumbling trade barriers. Globilisation of our economy is accelerating. For South African business leaders this creates a sea of export opportunities,” he said.

Although there are ongoing demands for substantial profit growth from shareholders, the days of focussing only on their interests are gone, said Mr Pretorius. Stakeholder commitment now enjoys high priority and business leaders have to deal with the challenges accompanying black economic empowerment and employment equity.

Customers are also well-informed and demanding. Business leaders could easily loose the loyalty of their customers because of a hyper-competitive environment with an oversupply of goods and services.

Mr Pretorius stated that staff want to be involved and are looking for meaning in their workplace. Employers also have to deal with HIV/Aids in their workplaces. Trauma, absenteeism and financial implications could have a great effect on the viability of a business.

Against these changes Mr Pretorius pointed out the challenges business leaders are facing. In doing so a number of questions arise. The external business climate is characterised by turbulence and change. Internally there is a need for stability and meaning. How do we handle both challenges effectively?

Because of changes strategy decay is taking place and past strategies become irrelevant. Mr Pretorius said that business leaders need to modify their business models to prevent the downfall of their companies.

It is important for leaders to know what is happening in their world. “Continuous innovation is a critical success factor. The reality is that innovation is the only insurance against irrelevance,” he said.

Because of a changed environment leaders must perform and transform, simultaneously. How do we strike a balance between focused transformation and the achievement of world class performance, asked Mr Pretorius? “We need to bring about meaningful and sustainable empowerment, in order to create an inclusive economy and society. Leadership and management profiles should reflect the diversity of our teams, however at the same time every effort should be made to stop the brain drain and retain the expertise of experienced white managers.”

He also stated that leaders have an important role to play in terms of employment creation and corporate caring. “Sustainable stability and prosperity will not materialise without efforts in this regard.”

Mr Pretorius said that above challenges could be addressed by developing the ability to focus on creating a better future, rather than defending the past, a long-term vision, facing new realities, enhancing the value of brands and mobilising IT and the Internet to serve the business and customers better.

Retaining a positive vision of the future, embracing change and transformation, building your business according to the right principles and values and aspiring to be the best are some of the guidelines, according to Mr Brand, for future business success. He stated that creating a value advantage above one’s competitors, customer satisfaction and retention and inspirational leadership will add to the success of one’s business.

“We are indeed living in the era of the ultimate challenges, but also the ultimate opportunities. Let me clearly state that I have hope – in my view the tide has turned. Every day I experience small miracles inspired by ordinary people making an extraordinary difference,” said Mr Pretorius.

 

Media release
Issued by: Lacea Loader
Media Representative
Tel: (051) 401-2584
Cell: 083 645 2454
E-mail: loaderl.stg@mail.uovs.ac.za
5 November 2004

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