The Business Trust was established in 1999 to help to create jobs and build capacity while enhancing trust and building co-operative relationships between business and government. This, the founding prospectus said would be done "while the economy is put on a growth path that will bring sustained improvements to the lives of all South Africans".
In the late 1990s South Africa was attempting to provide socio-economic consolidation of hard- won political gains that culminated in the democratic elections of 1994. The challenge was to build the foundations on which the needs of ordinary South Africans could be met. A small group of business leaders decided that businesses in South Africa should lead a focussed intervention that would help bridge the period of what was, in essence, a self-imposed structural adjustment programme.
Through the Business Trust companies have been given the opportunity to work with one another and in partnership with government in the crucial process of nation building. More than that, the Business Trust has, through the Big Business Working Group, provided an influential cooperative forum where senior members of the private sector regularly meet with high-ranking government ministers and officials under the chairmanship of former president Thabo Mbeki.
In this way the Business Trust provides the wherewithal to individual companies, no matter how large or small, to accomplish together what they could not do on their own.
Why a business initiative?
The idea of an extraordinary business effort to address selected aspects of South Africa's socio-economic challenges in a targeted way arose out of a concern about rising unemployment and the need for human capital development.
The need for a constructive dialogue between government and business had increased as global pressures intensified and poverty deepened for many South Africans. At the same time, there was a need to improve perceptions of the social involvement of business and correct the impression that it was not committed to transformation.
The assessment of a wide range of business leaders was that an initiative was required in which support for practical programmes could go hand in hand with the building of confidence and trust between business and government.
How was the Business Trust developed?
Discussions were initiated with government and work began on an initiative to underscore the genuine commitment of the business community to the future of South Africa in an action-orientated manner, supportive of growth as well as equity.
The past presidents of the SA Foundation, and the past chairman of the National Business Initiative, played key roles in the instigation of the process. These were complemented by support from senior black business leaders, including the Black Business Council. During the first quarter of 1998, the SA Foundation and National Business Initiative convened a task team of business leaders across a broad spectrum to explore the potential of an initiative, in response to rising joblessness and the need for creative government relationships.
The following individuals from the business community participated in the business task team chaired by Saki Macozoma and Dave Brink: Danisa Baloyi, Doug Band, Adrian du Plessis, Vusi Khanyile, Andre Lamprecht, Chris Liebenberg, Russel Loubser, Dolly Mokgatle, Eric Molobi, David Moshapalo, Rick Menell, David Mokoena, Lot Ndlovu, Cyril Ramaphosa, Johann Rupert, Tokyo Sexwale, Michael Spicer, Richard Steyn and Gerhard van Niekerk.
The way forward
In 1999 it was agreed that the Business Trust would be in operation until June 2004, allowing a sharply focused five year life span. However, in November 2003, during discussions in the President's Big Business Working Group, former president Thabo Mbeki indicated that government would like to extend the life of the Trust as a partnership between business and government. A joint business/government oversight committee was set the task of defining the new mandate.
The oversight committee presented its vision of the Business Trust as a unique partnership, which saw the Business Trust as a vehicle to press forward nation building by supporting reconciliation, reconstruction, development and growth. In particular it saw the Business Trust supporting the expansion of the Public Works Programme, community rehabilitation and enterprise development including the extension of the life of the successful Tourism Enterprise Programme.
