review of delivery of 2018 strategic plan - …...2019/03/28 · directors: busi mavuso, cas...

REGISTRATION NUMBER: 2014/042417/08 PRESIDENT: Sipho M Pityana VICE PRESIDENT: Martin Kingston CEO: Tanya Cohen NEDLAC CONVENOR: Kaizer Moyane DIRECTORS: Busi Mavuso, Cas Coovadia, Christopher Campbell, Deidre Penfold, Gwarega Mangozhe, Joe Mwase, Maria Ramos, Roger Baxter, Stavros Nicolaou, Vusi Khumalo

REVIEW OF DELIVERY OF 2018 STRATEGIC PLAN

During 2018, there were a number of notable shifts in the state of the economy, including a change in the leadership within government. President Ramaphosa brought into focus the need for investment, growth and job creation; the clean-up of State Owned Enterprises; and the commencement of a number of Commissions of Inquiry that surfaced a raft of corruption and state capture. The Presidential Jobs Summit and Investment Conference, together with the Economic Stimulus package brought a number of positive initiatives to the fore, but also revealed serious constraints, including a lack of capacity to align key policies and implement within the State. This was reflected in two quarters of negative growth, together with South Africa entering a job shedding phase.

It was against this backdrop that notable highlights for BUSA during 2018 included:

• BUSA played a leading role on behalf of business in the Presidential Jobs and Health Summits, as well providing as input to the Investment Conference through hosting a series of round table discussions. This included hosting deliberations with the IFC and World Bank Group.

• BUSA’s engagement on a host of policy reform areas, including land, health and competition policy demonstrated the value of capable internal resourcing, alongside relying on member expertise and insight. This was cemented through a number of cross-cutting engagements underscoring the need for aligned, certain and fit-for-purpose legislation suitable for all types and sizes of business.

• A focused energy strategy delivered with capable leadership, internal and industry expertise, through which BUSA placed the spotlight on energy security and sustainability. The BUSA Board, followed by and engagement of business leaders engagement on 2 December 2018, identified Eskom as the most significant risk to the economy.

• The follow-through by BUSA on the labour market stability and national minimum wage agreements cemented BUSA’s role with other constituencies and gave continued effect to the labour relations stability agreements of 2014.

• The work on skills development and institutional reform, particularly in the context of the future of work was strategically driven by a capable team of member and internal experts.

• Continued operational enhancements leveraged BUSA’s ability to deliver on its mandate and attracted new membership. The employment of a dedicated media expert brought with it enhanced focus on the strategic priority areas. Together with the launch of the BUSA redeveloped media website, improving day to day delivery and embedding the mandating and nomination processes with BUSA, this has this has positioned the organisation more credibly in the public sphere.

On the downside, BUSA had constrained capacity (mainly in the form of expertise and research funding) to drive some key areas of focus, including transformation research, a tax study on the burden to SMEs, water policy and initiatives on ethical and accountable leadership. In 2019 there will be a focus on incrementally augmenting resources within BUSA through membership and external contributions and collaborations.

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STRATEGIC PLAN REVIEW 2018

DETAILED OF DELIVERY OF 2018 STRATEGIC PLAN Strategic Objective Deliverable Action Step Timing Status and Outcome

1. Transformed, inclusive economy that creates sustainable employment

Lead business input on Presidential Jobs and Investment Summits

• BUSA to lead input for business on Presidential processes such as the Jobs and Investment Summits

• BUSA to engage on youth employment initiatives with a view to better monitor and co-ordinate within business

• BUSA to co-ordinate input for business on the steps required for a restructured economy and the role of the private sector in driving such change

• Ongoing

• Ongoing

• November 2018

• Participated in the 2018 international investment roadshows with the Minister of Finance.

• BUSA led the business delegation on the Jobs Summit, including constituting task teams that negotiated the Framework Agreement.

• Held a media roundtable on eve of Jobs Summit in October 2018 to acquaint press with BUSA’s inputs and position on Jobs Summit.

• BUSA supported preparation for the Investment Conference, gave business content input on constraints and hosted sector roundtables.

• Emphasis placed on youth employment and small business growth through various processes including coordinating input on Jobs Summit, participation in youth employment accelerator and efforts to provide input to YES policy design.

• Convened a strategic conversation at Liliesleaf on 2 December 2018 to discuss the state of the economy.

• •

Influence Transformation Policy

• Actively include transformation on agendas of policy committees

• February 2018 • • When tabled

• Transformation included into the agendas, with varied success.

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• Provide policy input on transformation in legislation such as B-BBEE and EEA, and the Public Procurement Management Bill

• Mandated input on B-BBEE regulations and negotiated the EEA amendments in Nedlac although BUSA’s influence was limited.

Strategic partnerships and stakeholder engagement and events, media and research

• Identify and co-operate with stakeholders on transformation and the four elements (youth employment, skills development, diversity and enterprise development)

• Initiate, participate, partner and comment on key transformation events and support or initiate research to reinforce the Business Approach to Transformation

• Ongoing • Proactive participation in a number of transformation events, including the B-BBEE Commission Summit and Jobs Summit.

• Comprehensive media database, with emphasis on business press, developed, and relationships deepened with media houses familiar with BUSA’s work. BUSA has positioned itself as go-to business voice on policy and governance matters, and macro-economic issues.

Transformation in Organised Business

• Monitor demographic composition of BUSA delegations and structures

• Foster constructive and functional relationship with Black Business Council (BBC) and other organisations representing black and/or women business interests

• Monitor and report transformation work within BUSA

• Ongoing • Quarterly

• Monitored delegations through Remuneration Committee (Remco) nominations.

• Regular engagement and opening of opportunities with BBC, as well as with Black Management Forum and other organisations representing black and/or women business interests to foster constructive, cooperative and functional relationships that support alignment of business on key issues.

• Reporting into BUSA on progress on transformation.

• Credible baseline study not secured due to internal capacity and funding constraints. This will be pursued in 2019 with funding support from SASOL.

2. Small and medium

Access to information for SMEs

• Engage relevant stakeholders to link access to financial information

• July 2018

• May 2018

• Access to finance for SMEs strengthened through strategic partnership with FinFind.

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enterprises thrive

• Launch CCMA BUSA Labour Advice Web Tool for SMEs

• Work on CCMA BUSA Labour Advice Web Tool for SMEs concluded end of 2018. The 2019 Business Economic Indaba was identified as ideal platform to launch the Tool.

Address regulatory burden

• Identify main tax constraints and solutions and then engage with National Treasury and SARS thereon

• Influence that the Socio-Economic Impact Assessment System (SEIAS) includes deliberate SME impact analysis

• September 2018

• Ongoing

• Study not conducted due to lack of funding. Funding sources will be pursued in 2019.

• Specific impact of legislation on SMEs addressed through an Agreement of the Jobs Summit, to take into account the impact on SMEs in all legislation.

Strengthen the voice of business

• Monitor SME regulatory considerations in all policy work by tracking SME-related provisions in legislation

• Leverage support to small business Member organisations

• Quarterly • Ongoing

• Internal SME Tracking Tool developed to track developments in legislation and impact on SMEs.

• Ensured BUSA’s voice on SMEs as part of major macro-economic developments was loud, clear, concise and insightful through deployment of aspects of 2018 communication strategy and plan.

• Held first meeting of BUSA SME Working Group that reaches across both policy committees and focused on SME matters. Provided input on the Private Members Bill (Small Business Ombudsman).

• Continued to provide BUSA meeting rooms to smaller Member organisations.

Build skills for SME management and entrepreneurship

• Conclude audit of practices by businesses and sectors.

• Consider opportunities to leverage and expand programmes into sustainable initiatives across sectors as part of transformation.

• April 2018 • Ongoing

• Audit of youth-related programmes by businesses finalised, but struggled to get participation.

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• Sought to partner with organisations providing credible services in this space through the Jobs Summit.

• Overall, BUSA’s ability to drive youth employment initiatives is limited, but it will seek to partner with aligned organisations in 2019.

3. Predictable, certain and enabling regulatory environment for inclusive growth

Provide input on legislative amendment processes in Nedlac and Parliament such as the Competition Amendment Bill, the National Credit Amendment Bill, the Infrastructure Budget Facility and Co-operative Financing Model, Technical Regulatory Agencies Task Team, Preservation of Land and Agricultural Development Bill

• Mandated positions • Well constituted BUSA team for Nedlac

engagement in line with BUSA governance requirements

• Stakeholders identified and engaged • Line of sight for Members • Consideration of evidence and information

requirements as necessary • Consideration of regulatory impact on

inclusive growth, business, economic transformation and SMEs

• Ongoing • BUSA participated in an extensive Nedlac process on the Competition Amendment Bill during the course of 2018 and recently submitted comments on the Draft Buyer Power & Price Discrimination Regulations, influencing outcomes in some instances.

• BUSA presented before the Parliamentary Portfolio Committee on the National Credit Amendment Bill following the bypassing of a Nedlac process by government.

• The Nedlac Task Team on the Technical Regulatory Agencies to ensure a more efficient system is ongoing following a review of SABS by government and a postponement necessitated by the Jobs Summit.

• BUSA has been tracking developments on the Preservation and Development of Agricultural Land Bill at Nedlac. The Bill has formally been withdrawn from Nedlac. The Bill will be reintroduced to Nedlac upon finalisation of the new draft.

• The Regulation of Agricultural Land Holding Bill has formally been withdrawn from Nedlac. The Bill will be reintroduced to Nedlac once

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government has considered expropriation of land without compensation.

Business position on land

• Develop a BUSA position on the land issue and lead the overarching business input in this regard

• Motivate for land issues to be deliberated upon through Nedlac

• Ongoing • Participated in Nedlac engagements on relevant legislation in the early part of 2018. BUSA finalised its position and mandate through a number of engagements with Members.

• Presented its position to the Joint Constitutional Review Committee in Parliament on Expropriation without Compensation in June 2018.

• BUSA spoke out on a number of public platforms about the importance of property rights for investment and need to advance land reform.

• Ongoing engagements on, inter alia, the draft Expropriation Bill published in December 2018.

Promote SEIA methodology and implementation

• Encourage the use of SEIA for all legislation • Engage with the Department of Performance

Monitoring and Evaluation (DPME) to motivate for constituency involvement and improved SEIA processes

• Play a leading role in DPME SEIA Colloquium

• Ongoing • Ongoing • March 2018

• BUSA presented on behalf of business at the SEIAS Colloquium convened by DPME.

• Jobs Summit Agreement reached to take into account the impact of all legislation on jobs, investment, transformation and SMEs.

Regulatory Burden • Publicise regulatory burden study conducted in 2017

• Improve BUSA tracking and monitoring of regulatory developments

• Engage with Department of Small Business Development (DSBD) on impact on small business

• May 2018 • Ongoing • August 2018

• Based on the 2017 study, BUSA identified key challenges with legislation and surfaced these at a number of engagements with Members, investment envoys and the public.

• BUSA SME Tracking Tool has been developed and is being utilised to monitor regulatory developments.

• Engagement with DSBD was limited.

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4. Productive and stable labour market

Labour Relations Stability Accord, Code of Good Practice and Labour Relations Act Amendments

• Popularise the Nedlac Agreements • Facilitate and encourage training for BUSA

Members, employer negotiators in terms of the Nedlac Agreement, with International Labour Organisation (ILO) and CCMA support

• Influence the legislative process in Parliament in line with the Agreements in Nedlac

• Promote collective bargaining policy development

• Ongoing • September

2018 • April 2018

• Nedlac Agreements frequently referenced, drawing attention to the stability aspects.

• BUSA presented on a number of occasions in Parliament on the labour amendments.

• BUSA represented business in the public sphere and media on matters relating to the labour stability and the related legislation.

National Minimum Wage (NMW)

• Influence the legislative process in Parliament in line with the Agreement in Nedlac

• Influence exemption procedure to ensure it is efficient, effective and accessible

• Build awareness among BUSA Members • Ensure capable business representation on

the NMW Commission

• Jan – May 2018 • March 2018 • Ongoing • As required

• BUSA presented on a number of occasions in Parliament on the labour amendments and represented business at the proclamation of the NMW in December 2018.

• BUSA participated in Nedlac on the NMW exemption system and engaged with Members on the design of the process and system. An arbitrary exemption threshold was imposed despite BUSA’s efforts to address this.

• Capable business representatives nominated to the NMW Commission, but the overall composition may be insufficiently business orientated.

Wage Inequality • Conduct or participate in research • Develop BUSA position

• December 2018 • Terms of reference developed for income inequality research arising out of a Jobs Summit Agreement.

5. Affordable reliable and sustainable energy and infrastructure

Energy • BUSA to advocate for consultation so as to secure a sound, evidence-based Integrated Energy Plan and Integrated Resource Plan (IRP) for South Africa

• Ongoing • BUSA has positioned itself as the business lead with Government and Eskom on energy matters

• Submitted substantial comments on the draft IRP 2018.

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(technology water, and road transportation) to meet current and future needs

• Participate in Nedlac Energy Task Team on the basis of a mandated BUSA position

• Engage with Eskom on key utility challenges through the established workstreams

• Evidence-based response to Eskom’s Regulatory Clearing Account (RCA) and tariff applications

• Maintain and build constructive stakeholder engagements with Eskom, National Energy Regulator of South Africa (NERSA) and related entities

• Respond to NERSA’s discussion document on Prudency Assessment Criteria for regulated entities such as Eskom

• Highlight key energy issues in the media • Oversee research work on Eskom’s financial

sustainability within the ambit of the Nedlac Ratings Downgrade Task Team

• Engaged with Eskom leadership on matters of concern, but outcomes were not significant.

• Participated in Nedlac task teams on the IRP and the Gas Amendment Bill.

• BUSA made substantive, evidence-based submissions on Eskom tariff applications (four RCA applications and one multi-year price determination application) that were influential in determining the tariff.

• Responded to NERSA’s discussion document on Prudency Assessment Criteria; Notified Maximum Demand; and Small-Scale Embedded Generation Registration Fee.

• Concluded work in Nedlac on Eskom’s financial sustainability, although the work was not as influential as originally envisaged.

• Convened energy roundtable in the lead up to the Investment Conference.

• Highlighted key concerns regarding energy and Eskom in the media.

• Convened a leadership engagement on 2 December 2018, identifying Eskom as the No.1 risk to the economy and the country.

Water • Participate in research and engage within business to identify the key challenges (including infrastructure, management and governance constraints) facing the water sector, including at municipal level

• Consider a fiscally sound, sustainable water strategy

• Ongoing • Provided members with a link to the drought relief work convened by the NBI.

• Water initiatives were included in the Presidential Job Summit Framework Agreement.

• Convened a water roundtable in the lead up to the Investment Conference.

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• Lack of internal capacity to drive water policy and initiatives, which will be sought through strategic partnerships in 2019.

Technology • Represent business on policy related developments

• Provide input on the Electronic Communications Act Amendment Bill

• Engage in Nedlac, bilateral fora, multi-stakeholder platforms and with research institutes on the challenges and opportunities presented by the Fourth Industrial Revolution for South African business [Human Sciences Research Council (HSRC) / Department of Science and Technology (DST) / BUSA event in May 2018 on Innovation and Industry 4.0]

• Ongoing • BUSA submitted inputs and presented before the Portfolio Committee on the Electronic Communications Amendment Bill, where the input was well received and influential.

• BUSA co-hosted the HSRC / DST /BUSA event on Innovation and Industry 4.0 on 25 May 2018.

• Capability to drive this priority has been limited by internal expertise constraints.

Transportation • Represent business on policy related developments that impact on business and employee transport infrastructure, including the Single Transport Economic Regulator

• Start work on a sustainable funding model for road infrastructure

• Ongoing • BUSA convened a team to engage new Bills in Nedlac: Draft Railway Safety Bill, Draft Economic Regulation of Transport Bill, as well as commenced work on the Draft Roads Policy.

6. A progressive tax system that supports inclusive growth

Develop a position and engage on the Budget

• Draft a pre-budget and post-budget position and circulate to Members

• Engage with the Minister of Finance and National Treasury at Nedlac on the Budget

• Prepare media position

• February 2018 • Pre-and post-Budget and MTBPS positions prepared for general public and Nedlac engagements (including media positions).

Monitor tax developments and proactively address

• Monitor developments at BUSA Tax Committee

• Engage on Carbon Tax Bill with National Treasury and Department of Environmental

• Quarterly • Ongoing

• Engagement with National Treasury, DEA and Parliament on the Carbon Tax Bill took place to influence the methodology.

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Affairs (DEA) to mitigate unintended consequences of the implementation process

• Engage in the Nedlac Public Finance and Monetary Policy Chamber on VAT and optimal mechanisms to reduce the public finance

• Work still to be done on the Customs and Excise Act and the Post-2022 alignment with the DEA instrument.

• Signed SARS MOU on behalf of business thereby establishing a forum for business to engage with SARS at a high level on matters relating to tax administration and collection. A task team has been established comprising nominated representatives from the BUSA tax subcommittee, with engagements likely to commence following the appointment of a permanent SARS commissioner.

Identify tax constraints and solutions for emerging and SME businesses

• Secure funding and conduct a study • Engage Members on the findings • Engage with National Treasury and SARS on

findings

• September 2018

• BUSA position on tax increases and VAT submission to VAT Zero-Rating Panel completed.

• Study on tax burden for SMEs not delivered due to lack of resources.

Engage on the MTBPS

• Draft a pre-MTBPS and post-MTBPS position • Engage with Members • Engage with National Treasury through

Nedlac

• October 2018 • Pre-and post-Budget and MTBPS positions prepared for general public and Nedlac engagements (including media positions).

• BUSA’s post-MTBPS media commentary (statement) well received and widely quoted.

7. Trade regime and international co-operation that enables South African business and regional integration

Nedlac TESELICO (trade policy) and Task Teams

• Monitor trade developments and identify additional areas of focus in the international trade regime with a view to developing a BUSA position

• Monitoring constraints to trade through participation in the NAMA NTB Task Team

• Submission of business positions on offensive and defensive interests in the Tripartite and Africa Continental Free Trade Agreement

• Ongoing as negotiations proceed

• Reports provided on Brexit and ensuring favourable positions on the bilateral trade negotiations between SACU(M) and the UK are developed.

• Report and BUSA position on the US Africa Strategy, although influence is limited.

• The BUSA restructuring process has led to the creation of a position of Executive Director:

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negotiations which happened in December 2018

• Prepared of position on the US Africa Strategy

Trade and Co-operation, to improve capacity of the Trade Policy area. The recruitment process is underway.

Secure BUSA visibility resources on trade issues

• BUSA provided input into the Nedlac Research on assessment of global subsidies on SA’s agricultural sector

• October 2018 • Convened an International Stakeholders meeting in 2018 with embassies, consulates and international chambers.

• Participated in the Nedlac study on agricultural subsidies, which was workshopped and hosted by the Department of Trade & Industry. An initial summary report prepared for the Trade and Industry Chamber (TIC) convener and the BUSA Trade, Transport and Logistics Committee.

Policy that enables regional integration

• Monitor and promote policy that enables and stimulates regional integration

• Ongoing • BUSA was one of the founding members of the SADC Business Council, which is going to be a strategic regional organisation to advance business interests at regional level.

• Monitoring of the SADC Trade Protocol, as well as the SACU review. Lobbied Minister Rob Davies for favourable business positions in the TIC Strategic Meeting in which discussions on trade negotiations and reviews of trade agreements were discussed.

• Providing inputs on the Tri-Partite Free Trade Agreement (T-FTA) and African Continental Free Trade Agreement (Af-CFTA), the former which is nearing completion, and the latter which is about to conclude Rules of Origin

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(RoO) negotiations and proceed to the tariff negotiations.

Monitor impact and address concerns on visa regulations on business travel and transfer of skills

• Secure feedback on the process • Develop a position paper enabling SADC

business travel for business and skills transfer purposes

• November 2018 • Progress was made on the Jobs Summit but was constrained at the end by an announcement by government.

• The issue has not been fully resolved and remains a challenge.

8. Education and skills development for current and future work

BUSA influences the National Skills Development Plan (IV) and SETA Landscape Review

• Provide a business mandated position on the National Skills Development Plan (IV)

• Engage with identified stakeholders and influencers and represent BUSA position on external platforms

• March 2018 • Ongoing

• BUSA Members have consistently engaged in the development of the various positions and represented business interests on skills-related structures.

• Presentations by BUSA at key national skills engagements such as the National Skills Authority (NSA) Conference, Skills Initiatives for Africa and the NSA public hearings.

• BUSA represented business on the National Skills Plan deliberations in Nedlac in October 2018.

• Conducted workshops to develop a position with Members on the SETA Landscape Review proposal.

• Submitted a position on the National Register of Artisans Regulations in December 2018.

A mandated business position to influence a demand-led post-school skills development policy

• Reinforce BUSA position and strategy, with particular emphasis on funding, throughput and TVET colleges

• Engage with SETAs, Department of Higher Education and Training, the Parliamentary Portfolio Committee and other key stakeholders

• Ongoing • Ongoing

• Mandated position developed by the Committee on Higher Education and Training.

• BUSA position reinforced on various public platforms including providing evidence to the Heher Commission of Inquiry on higher education fees.

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• Limited opportunities to engage SETAs and the Parliamentary Portfolio Committee directly, although a number of informal stakeholder engagements arose during the period.

BUSA engages on youth employment

• Provide input on national youth employment policy matters and in the Jobs Summit

• Research and monitor employment tax incentive utilisation and participate in Nedlac deliberations thereon

• Ongoing • BUSA participates on the National Youth Co-ordinating Committee and engages with Social Partners on varying initiatives related to Youth Work in South Africa.

• BUSA submitted a number of proposals during the Jobs Summit that pertain to job-creation opportunities for the youth.

• Research conducted and BUSA team participated in Nedlac resulting in a 10-year extension of the employment tax incentive.

Reduce blockages for critical and scarce skills transfers across national borders

• Identify blockages and solutions in relation to skills, migration, work permits and inter-connectivity

• Engage nationally and internationally through the Employment Services Commission, ILO and SADC Private Sector Forum on the issue of migration

• Ongoing • Monitoring the developments under ILO Conventions 97(migration), as well as participating in the Skills Initiatives for Africa (SIFA) engagements, which seek to strengthen private sector engagement in employment-oriented skills development in Africa.

Manage the Constituency Capacity Building Advocacy Project (CCBA) to support the work of BUSA on the skills development landscape

• Manage the providers to deliver four constituency sector-specific and four themed workshops for BUSA Members within budget

• Ensure capacity building interventions inform the BUSA policy position

• March – December 2018

• Ongoing implementation of the project. Themed workshops were presented in Gauteng during 2018. Regional roll-out to be undertaken in 2019.

• Capacity building interventions are aimed at addressing the concerns of BUSA Members and informing the BUSA policy position.

Influence Basic Education Policy for quality education that

• Develop relationships with Basic Education Stakeholders

• Ongoing • Monitoring the introduction of the Basic Education policies in Nedlac. The draft position

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enables youth to access employment and education

• Engage in policy developments for improved quality of education and throughput

is to be finalised and mandated prior to the commencement of the Nedlac engagements.

• Participated in NECT events and the African Leadership Academy Mastercard business stakeholder engagement on secondary school curriculum for the Future of Work.

9. Affordable comprehensive social security (CSS) framework for future generations

Develop a unified business position

• Formulate a draft BUSA position on CSS • Collate available evidence and identify next

steps, including constituency stakeholders and secure research, including funding

• Participate in Nedlac task team

• April 2018 • Ongoing • From May 2018

• BUSA position on CSS developed and mandated in May 2018.

• The collation of evidence has been slow due to a lack of an integrated government position.

• BUSA Nedlac task team reconstituted to incorporate broader stakeholder participation.

• Nedlac has commenced the procurement processes for service providers for the five identified areas of research.

Represent business in the Nedlac and other fora on Health

• Preliminary, mandated position developed through consultations and bilaterals with key stakeholders

• Support relevant cross-departmental representation by government in the task team

• Identify and secure relevant research

• March 2018 • Ongoing • April 2018

• Commenced engagement in Nedlac on National Health Insurance (NHI) Bill and Medical Schemes Amendment Bill. The White Paper deliberations are underway at Nedlac.

• BUSA convened a Health Working Group which is well represented by the industry and across business.

• Participated in the Presidential Health Summit Steering Committee and October 2019 Summit, leading the business input thereon.

• Continue to monitor developments around the NHI and participate in the post-Health Summit Compact process.

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Investigate international models and related legislation

• Track developments in relation to the CCS and NHI including social transfers, and other contingency insurance such as Unemployment Insurance Fund and Compensation for Occupational Diseases Act

• Ongoing • Tracking the relationship between COIDA, UIF and NHI in relation to CSS, but alignment of the various statutes remains a challenge.

10. BUSA promotes ethical and accountable business for co-operation and influence in SA, SADC, Africa and globally

BUSA actively promotes ethical and accountable business practices

• Lead business input in Nedlac on corruption and the need for good governance

• Co-ordinate WEF anti-corruption platform • Align with key business initiatives on anti-

corruption • Engage in International Organisation of

Employers (IOE) business and human rights matters, including providing input on the Ecuador Treaty

• Reinforce the importance of good governance, ethical and accountable leadership in the public sphere

• Ongoing • Participated and influenced the Sovereign Downgrade and Jobs Summit-related anti-corruption processes.

• Gave input to National Anti-Corruption strategy on behalf of business.

• No further action on the WEF anti-corruption platform.

• BUSA input through the IOE on business and human rights, although internal resources limited to leverage this work.

• Reinforced good governance and accountability on a variety of public platforms and engagements including with the Auditor-General and Auditing Profession leadership, the Audit Committee Forum, and the Oliver and Adelaide Tambo Foundation.

• BUSA is not directly positioned to implement initiatives and should seek to partner with aligned initiatives in 2019.

Nedlac Exco and Chambers

• Ensure BUSA representation is well constituted in line with governance processes

• Ensure mandated positions or input and reporting

• Ongoing • Ongoing •

• BUSA delegations constituted and positions developed for Nedlac Exco engagements and Chambers.

• Nedlac administration and management of concern. BUSA to action interventions in 2019 in this regard.

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BUSA plays a leading role in SADC

• Foster South African and SADC Stakeholder Relationships

• Participate actively in SADC Business Council Private Sector Forum (SPSF) strategic priorities particularly on future of work, compendium of labour laws, and migration, and consider Global Apprenticeship Network participation

• Participate actively on certain issues in SPSF strategic priorities particularly on youth employment, compendium of labour laws, and migration

• Take over the SPSF Chair from August 2018 - 2019

• Ongoing • November,

May 2018

• Ongoing

• From August 2018

• Participated in the SADC Employment and Labour Ministers meeting in February 2018.

• Gave input to the structure and participated in an inception meeting of the SADC Business Council, to become the South African founding member of the SADC Business Council.

• Took over the chair of the SPSF in June 2018 and have sought to deepen the work on the compendium of labour laws, migration and Future of Work.

IOE and the ILO • Represent SA business in the SA Decent Work Country Programme (DCWP), SADC, Business Africa and at the ILO

• Influence the SA DWCP biennium priorities, outputs and outcomes

• A mandated BUSA position at the 2018 International Labour Conference (ILC) to ensure that SA Business interests are accommodated

• To influence the ILO Future of Work Centenary Initiative to address businesses’ key concerns/ around the future of work in South Africa

• As scheduled

• June 2018 • Ongoing

• Ongoing participation in Nedlac on the DWCP, including influencing and finalising the SA biennium priorities.

• Ensured mandated positions at the 2018 ILC where SA business representatives played a leading role in all structures where they participated.

• Closely monitored and gave SA input to the Future of Work developments at the ILO.

BUSA participates in global events on behalf of SA Business

• Participate in BRICS, particularly as SA takes over the chair in 2017/18

• Ongoing • Participated in the BRICS Business Summit and labour meeting of July and August 2018. Input

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• Participate in G20 through the IOE and ILO global events aligned to strategy

provided to secure a credible BRICS Business Council.

• Opportunity to participate directly in the G20 was not possible due to conflict with the Jobs Summit timing.

• Constrained by limited internal and membership volunteering capability for key events.

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DETAILED REVIEW OF DELIVERY OF 2018 EFFICIENCY OBJECTIVES

Strategic Objective Strategy Action Step Timing Status and Outcome

1. Transparent and Accountable Governance and Strategy

• BUSA Strategic Plan 2017 Reviewed and 2018 Plan adopted

• 2017 Strategic Plan reviewed, and 2018 Strategic Plan developed and approved by the Board

• Communicated to Members

• March 2018 • Strategic Plan reviewed, adjusted, adopted and communicated to members. The strategy continues to provide important focus and prioritisation for BUSA.

• Ability to deliver on strategy constrained by human resource capability in the organisation.

• AGM, Board and Policy Meetings properly constituted and managed

• AGM, Board and Board Committees operating as per Memorandum of Incorporation with due notice, quorums and relevant documentation

• Policy meetings held with due notice, quorums and relevant documentation

• Ongoing • AGM and Board Meetings duly constituted, although some Board committees did not meet as scheduled due to unforeseen circumstances.

• BUSA AGM was successful, with an Annual Report developed demonstrating progress made by the organisation.

• Policy meetings well attended with due notice, relevant agendas and documentation.

• Transparency and good governance with respect to Membership opportunities

• Remco nominations in accordance with BUSA guidelines

• Dissemination and reinforcement of Board guidelines to Members

• Ensuring feedback and managing non-attendance on external bodies and statutory bodies

• Ongoing • Remco oversaw appointment of external representatives to 42 different structures and processes in 2018. The guidelines provide an importance governance mechanism for BUSA.

• Board guidelines reinforced and disseminated. • Feedback from statutory body representatives

improved.

• Embed Social and Ethics Ethos

• Popularising Ethical Code, Pledge and Contract with SA

• Ongoing • Biannual

reporting to Committee and Board

• Ethical Code signed and distributed early in 2018, urging members to do likewise. Some Members indicated that they had taken up the Ethical Code and were engaging upon it with their members.

• Social and Ethics Committee engaged regularly on ethical standards, with no notable breaches reported.

2. An efficient, effective and

• Human Resource Management

• Job profiles, performance agreements and career plans considered for all staff

• Ongoing • Job profiles, performance agreements and development plans in place for all staff.

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well-resourced organisation

• Payroll processed effectively • Leave records managed and up to date • Regular monitoring and reporting to

Remco • Team development and building

• Biannual reporting to Committee and Board

• A number of staff development opportunities were funded and supported by BUSA during 2018.

• Leave record and employment equity reports are all up to date, and payroll processed effectively but for one exception which was discovered in 2019 and is being addressed.

• Remco guidelines developed for salary adjustments, increases and performance bonuses. Salaries adjusted according to Remco guidelines.

• Financial Management

• Manage expenses and Membership fee collections

• Maintain monthly, quarterly and annual management accounts

• Process payments accurately as per contracts and delegation of authority

• Monitor and manage risk • Secure annual audits • Regular monitoring and reporting to Audit

and Risk Committee (ARC)

• Ongoing • Quarterly

reporting to Committee and Board

• Membership fee collections ended in 2018 at 99.99%. • A total of 11 new and four returning Members were

recruited in 2018, and with no resignations, adding to the revenue stream. However, a number of members are struggling financially, and have reduced ability to pay Membership fees.

• Expenses were managed within 2018 budget and payments processed as contracted.

• Clean audit of 2017 Annual Financial Statements and approved by Members at the AGM.

• Management accounts and risk reports presented quarterly to the ARC.

• Adequate funding of BUSA continues to be a key constraint to the organisation.

• Operational and Contracts Management

• Ensure service providers managed as per contracts

• Workplan / Operational plan in place • Weekly staff meetings • Put in place a BUSA operating calendar

• Ongoing • Annual

operational plans

• Weekly staff meetings

• Contracts in place and managed. • Operational plans in place and implemented. • Weekly staff meetings contributed to integrated and

aligned outcomes and improved delivery. • Operating calendar in place, but can be improved.

• BUSA Capacity and Research Fund

• Establish governance and financial control mechanisms

• Establish Research Fund

• August 2018 • Proposal in development, but progress was not made in this regard due to internal capacity constraints.

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• Consider research requirements aligned to BUSA strategy

• Research funding opportunities through external organisations are constrained, and often not accessible or available in the available timeframes or with the required experts due to supply chain limitations.

• Supply chain expertise will be sourced in 2019 with a focus on sustainable funding.

• BUSA optimally staffed to perform its role

• Recruitment of Energy and Environment Policy Manager and Parliamentary Manager

• Consider resourcing and support of interns • Put in place a sustainable media

resourcing solution

• May 2018 • August 2018 • Ongoing

• Communications and Energy and Environment Managers successfully appointed.

• Limited capacity to consider a sustainable internship plan, although one internship opportunity was created.

• Organisational design approved in last quarter of 2018. • Organisational capacity continues to be a key

constraint for BUSA to deliver on strategy. The filling of the Social Policy and Operations Executive Director and Parliamentary Manager posts in 2019 should provide considerable support to the organisation.

• BUSA office • Finalise artwork and snag list • April 2018 • Snag list completed and all office move-related challenges resolved.

• Meeting rooms are in frequent use, and the space is generally well utilised. Members and stakeholders respond positively to the space and its conduciveness. The move has positioned BUSA to be more accessible and relevant.

• Artwork supplemented subject to budget availability.

3. Members engaged with clear visibility of BUSA’s work

• Regular, targeted communication that reflects the BUSA brand

• Member Communication • Policy Committee Communication • BUSA Newsletter (monthly) • Member Meetings

• Ongoing • Regular ad-hoc communication sent to members as required through the Membership mailing list and policy committees.

• Membership engagement and meetings tracked quarterly with 92 overall engagements and meetings recorded for 2018.

• Since hiring communications manager in June 2018, BUSA newsletter has been delivered monthly to

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Members via a general mail and uploaded on the Member-only section of the organisation’s website.

• The newsletter is one of the most popular (most read) items on the site.

• Maintain Membership database

• Clean up Membership database and distribution lists

• Ongoing, with quarterly review

• Membership database cleaned up • Distribution lists checked quarterly at staff meetings in

line with Membership status.

4. Stakeholders regard BUSA as an influential social partner

• Stakeholders identified for policy and organisational priorities

• Key government parties identified • Engagement with foreign chambers and

consulates • Included in workplan of policy committees • Implemented as per the plan and emerging

requirements

• March 2018 • Engagement with international chambers took place in August 2018. It was successful and generated interest in BUSA.

• Ongoing stakeholder engagement pursued as required. • Comprehensive BUSA stakeholder list is not in place

and proving difficult to compile and maintain with limited dedicated resources.

• Stakeholder database and tracking (including media)

• Database of stakeholders • Monitor stakeholder engagements and

report to the Board

• May 2018 • Quarterly

• Stakeholder database was not developed due to capacity constraints.

• On the upside, BUSA has a comprehensive and growing media list comprising broadcasters, the print press (both magazines and newspapers) and online publications. BUSA media list updated and reviewed quarterly.

• A total of 320 stakeholder engagements took place in 2018. The focus in this regard has been on the strategic objectives and positioning BUSA as the apex organisation.

• International Affiliations Maintained and Enhanced

• Leverage international affiliations and partnerships

• Represent business while SA takes over the SADC chair and chair of SPSF in August 2018

• Represent BUSA interests when SA takes over the leadership of BRICS in 2018

• Ongoing • August 2018 • July 2018

• Ongoing • August 2018

• Represented business in a number of engagements at SADC level (refer to policy SO 10).

• Facilitated engagement with NBI as potential future BRICS Business Council secretariat.

• Leading SPSF ensuring representation and participation as required.

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• Represent business at the SPSF, Business Africa and ILO

• Overall, our ability to participate has been constrained by internal resource limitations and ability of our members to volunteer participation.

• Parliamentary Service

• Consider co-funding agreement with Members

• Recruit a suitable person who will provide the Parliamentary Service

• Induct and align individual with BUSA priorities and needs

• May 2018 • Co-funding agreement with BLSA put in place for Parliament, but this is under review.

• Individual was recruited and inducted, but did not continue beyond probationary period. Recruitment process to commence again in 2019.

5. BUSA is publicly recognised as the voice of business

• BUSA Website • Website content developed • Website redesigned and launched

• January 2018 • April 2018

• BUSA re-branding implemented at the start of 2018. • BUSA website has gone live, with both the Member-

only and public access sections serviced with content regularly.

• Through Google Analytics, BUSA started monitoring which sections of the website are most visited.

• BUSA has also used the website for Member communication, to upload BUSA submissions to Parliament, government and other stakeholders, as well as the organisation’s policy positions.

• Press presence on policy priorities and core values

• SONA, Budget, MTBPS and other commentary on key events

• Media deepened and aligned to strategy • Proactive or reactive communication and

opinion pieces on priority areas, with due governance

• Project BUSA’s role as the apex body for organised business

• Ongoing • Hired a Communications Manager in June 2018. Since then, BUSA has developed an economic, political and conference calendar aligned to its strategic objectives and used this to develop communication messaging.

• Developed a comprehensive media list of all major business and secondary publications. Also developed a comprehensive list of parliamentary reporters.

• Developed three-pronged approach to media releases: commentary with audio, BUSA in Parliament and statements to differentiate organisation’s messaging.

• Deepened BUSA relationship with print press and enhanced it with broadcasters (both radio and TV)

• BUSA’s commentary, BUSA in Parliament and statements are being quoted in op-eds and referenced

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in public discourse on matters of macro-economic relevance.

• Ensured BUSA’s voice on major macro-economic developments was loud, clear, concise and insightful through deployment of aspects of 2018 communication strategy and plan.

• The organisation maintains relevance in the press/media by reinforcing its strategy and ensuring that it adds to and enhances public discourse.

• Build strategic relationships with business editors and journalists

• Build key business media relationships through structured engagements and ad-hoc opportunities

• Invite media to key BUSA events

• Ongoing • BUSA has built solid relationships with City Press, Business Day, Financial Mail, Business Report, Business Times, Bloomberg, Reuters, the Money Show, Power Business and more through the development of focused content around macro-economic developments that is aligned to the BUSA strategy. This was reinforced with the media roundtable on the eve of the Jobs Summit.

• Build social media profile of BUSA

• Develop broad capability and guidelines to manage risk

• May 2018 • BUSA’s Twitter followers have grown in 2018 from 291 to 750 and its Facebook page has garnered more than 220 likes. BUSA has done this by focusing its content on subject matter and content aligned to its core values.

review of delivery of 2018 strategic plan - …...2019/03/28 · directors: busi mavuso, cas...

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