Africa

Thankfully, change in Africa continues to be largely positive. After debt-forgiveness, African governments and key institutions are debt-averse. African businesses tend to run on cash rather than debt. These habits stood our continent in good stead and the impacts of the global economic slowdown appear less severe than elsewhere.

Unfortunately, Zimbabwe has suffered economic meltdown, though the causes had little to do with global factors. An inclusive government is now in place and a degree of recovery is evident following the decision to make the US dollar and the South African rand the currencies of exchange. We hope for further improvement.

Namibia

Plans for a Namibian listing of Bidvest Namibia are now well advanced and we wish our colleagues every success as they prepare for an exciting future. African countries can only benefit by taking greater responsibility for local assets. We are confident the people and the entities that will invest in our business will continue to develop the current base and will generate significant wealth in years to come.

A transformation dynamic has been built into the Namibian business ahead of the listing with the aim of giving an empowerment lead to the new nation's private sector.

South Africa

Both political and economic changes have gathered pace here in South Africa, and I take this opportunity to convey my congratulations and best wishes to our new president, Jacob Zuma. He took the reins at a critical time, just as recession was confirmed by economic data.

Our national and provincial government elections may have led to robust debate, but they were peaceful, free and fair. South Africa can be proud that it continues to set an example for the rest of our continent.

Our political processes will always be closely observed internationally as South Africa is seen by many investors as a “proxy” for emerging markets in general. We are therefore in a position to send out a powerful message. And we did; namely, that votes settle our political differences, not violence.

Expectations

In the post-election period, expectations are high and pressure for service delivery intense. Our new president has made it clear that those charged with making a difference will be held accountable. Visible leadership is needed and engagement with the problems facing ordinary families is crucial. President Zuma is ideally suited to this role.

Empowerment policy

Leadership is also necessary on key policy issues such as broad-based black economic empowerment.

Recession and weak equity markets have exposed flaws in some approaches to black economic ownership. So much so that equity stakes dependent on leverage and dividends could revert to financiers. Some businesses that have sincerely transformed might then lose empowerment recognition, though the cause would be flagging markets rather than a flagging commitment to BBBEE.

Debate around the “once-empowered, always-empowered” principle is bound to sharpen. The definition of “ownership” becomes crucial. This matter needs to be revisited as the reduction in equity values is having an unintended consequence.

Lock-ins and losses

If equity ownership is paramount then lock-in agreements to enforce black equity ownership will continue. Lock-ins inhibit black access to profit or the proceeds of a successful transaction. They therefore hinder black participation in the economy and offend the spirit of empowerment.

It could be argued that in the last year lock-ins have depleted black wealth and reversed black advancement because black people were uniquely prevented from realising value when markets indicated that a measure of profit-taking was prudent.

Controversy on issues such as this has existed for some time. A simple and precise definition of “ownership” in an empowerment context will encourage further progress toward the vital goal of increased black participation in the economy.