BLSA suggests strengthened relationship with state amid economic downturn

BLSA’s latest thought piece by Busi Mavuso suggests that strengthened cooperation between business and the state may be the most practical solution to address the country’s economic downturn.

Business Leadership South Africa’s (BLSA) Busi Mavuso took to Twitter on Tuesday, 12 January 2021, to circulate a thought piece on the best ways for business to overcome the challenges posed by the return to Level 3 restrictions and regulations. The statement noted that she believes that the restrictions are necessary, considering the rising numbers amid the ongoing COVID-19 second wave.

However, Mavuso also highlighted the importance of returning back to a place where economic activity will be stimulated again. She claimed that in order for that to occur, there needs to be a stronger relationship between business, the state and various other organisations, such as trade unions.

The thought piece read, “Deeper engagement between government, business and labour will be crucial, and it’s critical that government is transparent about any harsher restrictions it may introduce, giving business forewarning so there is time to prepare. These measures come with consequences and often legal conflict — such as brewer, SAB’s decision to approach the courts because of the decision to ban the sale of alcohol.”

However, the relationship between the state, business and trade unions towards the tail end of 2020 did not spark much confidence. This was seen through the SA Investment Summit turnout, and the continued disagreements between business and unions over wages.

See the post below.

The impact on a long-struggling economy is unavoidable, and as business we understand that tough trade-offs are unavoidable as we try to limit the pressure on the health sector, says @BusiMavuso2 in @BDliveSA.https://t.co/nnqamWEsbN

— Business Leadership South Africa (@BLSA_Official) January 12, 2021

Sabelo Makhubo
[email protected]