DON D B Mkhwanazi
Former President – BMF
Entrepreneur
Transformation Activist
Director of companies
BMF ANNUAL CONFERENCE 2010
Sustainable and inclusive economic growth in South Africa and the rest of the African continent.
I am honoured to have been invited by the BMF, an organisation that has been part of my
existence for more than 30 years. In that time, we have as the BMF striven for black excellence
and the economic empowerment of the black person in S.A.: In harmony. The common
denominator binding us as members has been our common endeavour to ameliorate the condition
of the black people in South Africa politically, socially and most importantly economically. Let
us now not allow voices, tendencies and factionalism to emerge within our organisation,
because this will only serve the interests of reaction, whose primary pre-occupation is to
shoot us down and trash black economic empowerment and Black achievement in all their
manifestations.
Programme director the topic we have to address is underpinned by a well chosen theme –
Sustainable and Inclusive Economic Growth in South Africa and the rest of the continent. A
notion which all well meaning South Africans aspire to. In fact all Africans should find
resonance with such an ideal.
If we had our way we would have preferred an interactive session where we would first
interrogate what we mean or what kind of economic revolution we want in South Africa. If we
agree on the economic revolution we aspire to, it would then inform the kind of leadership that is
required to ensure such economic revolution.
It also behoves us to re-examine the kind of environment in which such economic revolution
would be taking place. The dynamic nature of the global scene cannot be divorced from our
discourse. It is directly and indirectly linked to what is possible, limitations and opportunities.
Maybe we need to sketch briefly what we envisage when we talk about economic revolution.
When we say economic revolution we are not talking economic reform which has been much
evident in the lives of our people and permeating our economic lives. This places the onus on us
to unpack what form, shape and trajectory does an economic revolution take as opposed to
economic reforms.
When we talk economic revolution we mean also the fundamental redefinition of economic
power relations in South Africa which are skewed favourably towards the minority – our white
compatriots.
When we talk economic revolution inequality, inequity, inaccessibility, mistrust and economics
of exclusion would be matters of the past and not feature prominently in our socio-economic
landscape. They would be buried forever.
Race would not be a denominator or/and variable in any economic equation. The race would
never be allowed to determine ones’ ultimate station in life. The identification of race with
economic function and economic backwardness will be totally uprooted, annihilated and
eliminated.
Misalignment and disconnect between vast mineral resources on one hand and the millions of
poverty stricken people on the other hand will be placed permanently in the scrap heap. It is a
serious contradiction and indictment of our leadership that 16 years after political liberation, the
gulf and gap between the poor and the rich has become so vast. When the economic revolution
has taken its full course, where you were born or who are your parents will be totally immaterial.
It won’t impact on your success or failure.
 When economic revolution takes its toll each and every South African irrespective of
creed, gender, status, religion, race or colour would be able to live and lead a decent life.
 When we turn every third household into a meaningful income generating family unit,
economic revolution would have seized the nation. Economic revolution means placing
in the hands of people the ability to unleash their full potential in order to reach their
ultimate destiny in life.
 Revolution will mean continuous supplanting and replacing the racist capitalist
superstructure that over 300 years of colonialism and apartheid built, with an economic
system that speaks to the demands and needs of the majority of South Africa’s
population. It is a road that true indigenous business persons and professionals have
chosen, diametrically opposed to “tokenism”, which reform denotes.
 It is a road on which the forces of reaction, given their control of the media and pliant
“tokens” have placed numerous ambushes, road-blocks, snipers, taking pot-shots at any
attempt by the democratic state to revolutionize the economic landscape.
Hence, we hear talk of: “When will BEE end?” ; “I would have succeeded without the
“hand-up” of BEE”; “Equal opportunity is the answer not re-dressing the inequities
of the past, which is just reverse racism.” By one fell swoop, 300 years of racist
colonialism and apartheid are erased from the South African canvas and replaced by
“equal opportunity?” That is reform.
 Some could argue that the very foundations of our socio-economic transformation since
1994:
o Affirmative Action Act
o Preferential Procurement Act
o Broad Based BEE Act
o Minerals Act
Provide the architecture an economic revolution. What may be lacking is aggressive
implementation. The pronouncement – post Polokwane and confirmed at the recent NGC that
South Africa’s macro-economic framework and monetary policy will be structured on building a
developmental state is a further pointer towards this economic revolution.
As Dr. Philip Emeagwali (the African recipient of 1989 Gordon Bell prize – the Nobel prize of
Super Computing has observed, for economic revolution to be a reality in Africa.
“Africa’s choice is clear produce or perish. It is imperative that Africa regains the
technological prominence which will enable it to produce what the world can consume.
When we do that Africa will be finally eating the fruits of its labour. To alleviate poverty,
Africa needs to cultivate creative and intellectual abilities – knowledge and technology are
crucial for alleviating Africa’s poverty and unleash the full potential of its citizens.”
What therefore will it take for South Africa to achieve its economic revolution….
The legitimacy of an African National Congress led government cannot be questioned.
After three successive and constitutionally compliant general elections, the ANC has
continuously been returned to power legitimately. The ANC must therefore lead, and lead
boldly.
However, what has been lacking and continues to be lacking is the bold vision about the
economic and social discourse of this country now and beyond the immediate.
There also needs to be a realisation that a revolution by definition transcends generations and
therefore its effects, product and influence can only truly be savoured by future generations.
But what might this revolutionary economic vision further entail:
 Foremost, in our assessment, South Africa needs to be extremely bold about its human
resources development plan. This transcends generations and goes from early childhood
development to the captains of industry that you are
No longer can this country afford to have human resource development held to ransom on
pillars of transient whims by people ill equipped for this critical role. Educators
themselves need to be on a constant and regular educational campaign. Self-development/
continuous development needs to be a pillar of the profession.
The investment required is not only monetary but should be complemented by the
individual and collective skill of the people around this room.
A marshal plan on education is required.
Linked to this is the return of parastatals to their role of being the training ground of
critical skills in the economy. Doyens of corporate South Africa today are graduates from
Eskom, IDC, Iscor, Gencor academies.
We are yet to find a black CEO in recent years who is a product of these institutions
outside the public sector.
This level of investment will transform this economy from a primary economy into a
knowledge economy where the battle of ideas fuels the economy.
 Linked to the HR plan is to drive an innovation focus. Developing science and
technology is not an option but an obligation.
Scientists create and accountants maintain no disrespect to accountants.
These fields of study have 30 – 50 year horizons and we haven’t begun to scratch the
surface. Stem cell therapy, nanotechnology and similar have been 50 years in the making
and only now are their ethics being debated. Little doubt can be placed on their
revolutionising effect on the world economy. The internet, cell phone and satellite
technology follow similar time horizons.
If we don’t do this, we will perpetually be in maintenance mode, and anything in
maintenance eventually shuts down.
 The creation of socially conscious black capital has to rank high in our economic
transformation blueprint.
No longer can we afford to be second class 25 percentiers in our own economy. Boldly,
the government must create mega corporates in construction, logistics, property
development, manufacturing, etc owned, controlled and operated by credible black
people.
As we progress this economy towards beneficiation and value added products, wholly
black owned corporates need to be in the forefront.
We must hasten to add though that where the capitalistic tendency of these entities begins
to supersede their social agenda, government should be unequivocal in its reprimand
including withholding future business.
Afrikaner capital continues unashamedly to be patrons, benefactors and funders of
traditionally Afrikaans academic institutions. We on the other hand find pet projects in
fashion. This is untenable.
 We are also calling for a patriotic business in South Africa as a cornerstone for economic
revolution that will ensure sustainable and inclusive economic growth.
The economic revolution led by the democratic state has to ensure that South Africa:
 Achieves the Millennium Development Goals (MDG) – a range of social indicators
that primarily address the “Third Word” component of SA – By 2015;
 Grows the economy by at least 7% per annum – which achieves both the demands of
population growth and historical backlog;
 Ensconces South Africa in the BRIC (Brazil, Russia, India, China) and SA group of
middle-income countries, growing SA’s export component by identifying and
consolidating new markets;
 Accelerates the SADC free trade agreement, thereby guaranteeing SA goods and services
increased access to markets that have been the traditional stranglehold of other regions
e.g. Europe
 Consolidates and strengthens the Southern African Customs Union (SACU), the
bedrock of South Africa’s manufacturing and access into neighbouring countries since
1910.
The net effect of the above initiatives is the expansion of South Africa’s industrial base,
translating to more jobs and services in South Africa.
The leadership for an economic revolution, which includes the BMF membership and other
progressive forces at the forefront of this economic revolution, has to galvanise their attention
and resources to perform the following:
 Leading from the front – raising and championing issues of economic redress and
wealth creation for and by the historically disadvantaged. If vigilance not heightened,
then attempts to circumvent and/or shelve issues of affirmative action, BEE and
preferential procurement come to the fore. We have for example heard in the past (2007/
8) statements saying these core initiatives would have to be shelved to grow our base load
electricity requirements i.e. building of power stations.
 Buttressing state initiatives – these are state initiatives that are central to the agenda of
the BMF and other progressive groups e.g. skilling the economy and the case of the
SETA’s. The BMF membership has to be seen both in terms of content and research to be
providing guidance to the state on the nature and direction of state initiated programs.
 Research – research is critical to understanding the political, economic, social and natural
phenomena we face in our every day endeavours. It is of essence that in the building of a
leadership for an economic revolution, there is constant research to inform new initiatives
and debates e.g. proportion of BEE companies as a proportion of total SA trade to Africa.
At the outset we did indicate that this proposed economic revolution does not or will not take
place in a vacuum. Global reality and special local circumstances in a dynamic environment can
only be ignored at our own peril.
Whilst we do not want to exhaust the scenarios at play, it would amiss of us not to highlight a
few that are poignant.
The first critical factor is that we cannot escape change which is a fact of life. The world is
increasingly transparent and globally connected. There is no place to hide.
Information revolution has enshrined transparency in the lives of world citizens. As Nordstrom
and Ridderstrale the two Swedish academics said, “The information jungle is less forgiving
than information desert.”
Consumers – the global citizens are spoiled for choice. The balance of power has moved from
the seller to the buyer. We agree with the postulation that the new customer is a demanding
dictator not the stupid, humble loyal customer of the past. People know their rights. They know
what they want, whether they are workers, voters or consumers.
Cities are becoming the centre piece of action. We are told that in less than 20 years more than
60 percent of world’s population will live in cities. Rapid urbanisation is with us. What does it
mean for economic revolution? What does this mean for provinces as intermediate delivery
structures?
Technological advances are driving the rapid change we are observing and experiencing.
The primacy of knowledge can no longer be over emphasized. As Nordstrom and Ridderstrale
argue, and we agree, natural resources, labour and capital are rapidly are rapidly diminishing in
importance. Third knowledge revolution is with us.
“Knowledge is the new battle ground for countries, corporations and individuals. We all
increasingly face conditions that demand more knowledge for us to function and in the long
run, for us to survive. You cannot build a wall around knowledge. You can’t isolate it. It is
there. It is in the air; in cyberspace. It envelops the human race (Nordstrom and Ridderstrale
in their book “Funky Business Forever – How to Enjoy Capitalism”)”
What are the implications for the leadership collective under these scenarios?
Clearly leaders are no longer going to lead the blind or/and conceal information when the
dynamics are all there to be seen or/and appreciated.
May we hasten to say that before we further allude to leadership required for economic
revolution, we are not going to dabble on prerequisites for successful leadership, as they are a
given. We are talking about:
 Legitimacy
 Sensitivity
 Acceptance
 Integrity
 Self-belief
 Emotional maturity
 Decisiveness
 Effective communication
 Intelligence
 Strong will
 Resilience
 Courage
 Character
 Competence
 Accessible
 Passion
 Honesty
 Nerve of steel
 Drive
 Inspirational
 Focussed
 Purpose
 Conviction
 Curiosity
 Creativity
 Common sense
 Bold and consistence
 Persistence
 Follow through, etc
We are convinced that scholars, sociologists, military experts, organisational and leadership
consultants would find affinity with these leadership descriptions and requirements. However
allow us to explore beyond what is normally proffered.
Maybe let us explore what is further required for an economic revolution in South Africa to
become a reality.
We need leadership that can galvanise the whole nation or the majority of its people. Goading
the nation to lofty ideals. The leadership collective that transcends narrow, selfish and selfcentred, self-interest. We are calling for leadership renaissance. Leadership that understands that
to lead is to sacrifice as Prof Peter Vale once said: “It is to surrender the self in the service of
others. To put aside one’s own life, one’s livelihood. Often one’s very living.”
A leadership that is empowering, thinking, influencing and with implementation uppermost in its
mind and actions.
Leadership that understands that its role is not primarily to deal with strategic or/and operational
plans but vision. The leadership that knows that to successfully effect an economic revolution, it
needs to deal decisively and inspirationally with:
 National unity is crucial, central and critical for economic revolution.
 National identity – a conversation of who we are as a nation.
 National pride and national psyche.
 New patriotism that will underpin a new patriotic front of all positive forces and
stakeholder groups
 New mindset
 New partnerships
 New patriotic front
 Listening and learning from the future. The best way to create the future is to predict it.
Critically important is learning from the past.
We want to believe that in addressing these critical issues a compelling vision that binds us all
together as one nation, should be espoused by this leadership.
A shared and inspiring vision that gives all South Africans, the confidence for the future. It
should hold us together like glue, and unifying. We are calling for vision 2044 for the third time
now. Vision 2044 because in year 2044, this country would be celebrating 50 years of political
freedom. This Vision 2044 will be the embodiment of the aspirations of all South Africans
defining also the “Business we are in as one South African nation.
Binding vision will underpin the national unity that is so critical for sustainable and inclusive
economic growth. Today national unity is an elusive concept in South Africa. Let us be blunt and
frank.
As we talk today we cannot help it but borrow the worlds of Lucky Mazibuko in his Sowetan
column titled – “Just call me Lucky.”
“What happened to the overrated and superficial rainbow nation? It is always overplayed
and grossly exaggerated. In fact I have warned many times before that our beautiful
country and its people have never been given an opportunity and privilege to shape their
own destiny.”
The economic revolution – total economic liberation that we all yearn for will remain a pipe
dream as long as there is no national unity, compelling vision, unclear unifying national identity,
nor national pride. We must forge new patriotism. Great leaders from all formations should make
these their highest priority. It is gratifying that the President of the country has began to say let
us have a conversation to define who we are. A great start, which must be accelerated.
The leaders required for economic revolution, would not only be visionaries but must create
conditions and enabling environment for all the people to achieve higher purpose and success.
Leaders must not be afraid of failure or cause those that they lead to fear failure.
Failure is nothing but learning how to win. Failure is therefore the highway to success. It is said
that the ultimate task of visionary leaders is to dignify and honour the lives of those they lead
allowing them to manifest their highest potential through the work they do.
Visionary leaders care less about appearing right than do right. They must never see their
leadership as popularity contest as they can never please all people. Their leadership must be
grounded by deeply rooted principles. Leaders must not expect others to become anything more
than what they are willing to be themselves.
Furthermore leadership for this economic revolution must be grounded in our African identity.
South Africa is not a back water of Europe or the US but an integral part of the African
continent.
These leaders must be imbued with an ethos of humility. However as Dr. Mamphela Ramphele
once said – “Leadership embodies the paradox between humility and steel discipline.” We agree
with her on this one in toto.
High work ethic critical for leadership. It reinforces the virtues of a high work ethic “beyond the
call of duty” emulating what we see from our immigrant populations and the East.
Single minded pursuit of South Africa’s national interest (s) cannot be overemphasized.
We mentioned leadership that is empowering, influencing, implementing and thinking that is
critical for economic revolution. Whilst thinking involves information gathering, concept
development, conceptual flexibility, the other critical aspect is emancipating the mind of the
followers.
Let us explore for a moment some aspects of the thinking in the leadership arsenal we are
talking about.
“Deng Xiaoping (Communist Party of China) call for emancipating the minds of the people can
be captured only in the context of time.
Almost 1 billion people divided in a class struggle had to be united in the common goal of
transforming the country. The destructive forces of the cultural revolution had to be turned into
constructive energy for building China.
The transformation had to start with allowing people to reclaim their own thinking. The
liberation of minds from indoctrination to emancipation was the first and most important pillar of
the transformation of China.”
In the context of South Africa the oppressive and systematic destruction of thinking capabilities
of almost 40 million South Africans require that all South Africans must be emancipated and be
allowed to reclaim their thinking capabilities from the destructive practices, habits and
tendencies most destructive being;
 Inferiority and superiority complexes
 Self destructive practices and behaviour
 Anti develop for other’s development of others and basic jealousy against others’ success,
etc
The emancipated people shall build confidence to measure their economic and political progress
against values and standards developed from the background of their own history. Emancipation
takes a long time therefore there are no short cuts. If you think of modern democracy the west
started the process more than 200 years ago yet in Switzerland women were only allowed to fully
vote in 1971, in America racial segregation was practiced well into the sixties. India (the biggest
democracy) still has the dreadful and undemocratic caste system.
This emancipation therefore must happen and be committedly driven by the WISDOM OF
LEADERSHIP VISION. James Allen described leadership vision with this quote.
“Of all the beautiful truths pertaining to the soul which have been restored and brought to
light in this age, none is more gladdening or fruitful of divine promise and confidence than,
that you are the master of your own thought; the holder of your character and the maker
or shaper of conditions, environment and destiny.
“The leadership required for an economic revolution” requires of us to compete for the future.
Competing for the future is different! We consciously need to build a cadre of leaders that are
capable of self-renewing. We also need to learn and listen to the future.
We therefore need to develop strategies, human capital plans, leadership pipelines, etc, that are
relevant for the changing local and global operating environment.
Our strategies should not just take stock of where we come from. The tendency to bask in our
previous glory should be closely guarded. Our time calls for a leadership that is forward looking
– what is our vision for our country for the next 10, 20, 50, 100 years?
Underpinning this vision should be identifiable core competencies needed to win markets not
just today but in future. They should help us gain insight into tomorrow’s opportunities. They
should help energise our enterprise towards a common and shared vision; they should assist the
enterprise in creating the requisite capacity to outrun even our competitors.
Allow us to say ours was not exhaustive nor final but an attempt to kick-start a debate, and
research which might ultimately come out either in a book form or/and recommendations to the
leadership core or leadership collective of South Africa. Ours today is not limited to the political
leadership but to the whole spectrum of leadership from NGOs, business, workers and civil
society.
True visionary leaders never seek followers, followers find them. So the experts say. Lee Iacocca
says – “People follow a leader because they trust him (her).”
Personally we yearn and know that when all South Africans ascribe and believe in the 2044
vision or our country’s vision – economic liberation will be with us. Our leaders would have
succeeded when the majority of South Africans say “South Africa, My country, My future.”
When this happens sustainable and inclusive economic growth will be the norm and part and
parcel of our lives.
“South Africa, My country, My future – the future is Ours.”
Thank you