12 Dec Interview with Cas Coovadia, CEO of Business Unity South Africa (BUSA)
Business Unity South Africa (BUSA) has played a key role in shaping economic policies and driving growth since 2004. Can you share BUSA’s vision and priorities for the coming years and how they are shaping South Africa’s business environment?
BUSA primarily operates at the macroeconomic level, representing business organizations across all major sectors. Our members include groups like the Banking Association of South Africa, the Consumer Goods Council and Business Leadership South Africa, which together represent around 95% of the economy. Our core focus is advocacy and policy influence to foster a regulatory environment that supports responsible, sustainable business. We promote legislation that encourages investment, boosts confidence and empowers the private sector to contribute in areas where government involvement should be minimal. Since COVID, BUSA has expanded its role to mobilize private sector resources to support government capacity. During the pandemic, it became clear that the government alone couldn’t manage the crisis. Businesses also sought guidance on navigating impractical regulations. To address this, we created a flexible platform, Business for South Africa, to assist with pandemic management, behavioral research and vaccine distribution via the private healthcare sector.
Once the pandemic subsided, we shelved the platform and reevaluated business’s role in addressing critical challenges like energy, logistics, crime and corruption. Rather than leaving these issues to the government or spreading efforts thinly, we proposed a structured partnership with the President to focus on these priorities. While the president agreed, government follow-through has been limited. In April last year, we approached the president with three critical priorities: energy, logistics and law and order. He agreed to partner with us and we mobilized support from around 130 CEOs and raised funding, including contributions from a global foundation and local businesses. On energy, we have worked closely with the National Energy Crisis Committee (NECOM), sourcing and funding expertise to implement the president’s energy plan. This includes deploying private sector engineers to power stations and supporting Eskom’s restructuring. With strong collaboration, including the Minister of Electricity’s backing, we have made significant progress.
Private sector investment in energy generation has increased and we are now addressing grid capacity and transmission issues to sustain this momentum. On logistics, we’ve begun placing privately funded experts within Transnet to support its recovery under a new executive and board. These professionals report to the government and we receive quarterly updates on progress. For crime and corruption, we have established a state-of-the-art forensic capability and provided resources to the National Prosecuting Authority to strengthen case preparation. All efforts are conducted at arm’s length, with strict non-disclosure agreements to ensure no private gain. Our goal is to create an enabling environment for the government to issue tenders and involve businesses transparently.
Over the past 15 months, Adrian Gore, CEO of Discovery Group, Martin Kingston from Rothschild and I have led private sector efforts alongside the government, supported by CEOs and structured collaborations. The president has actively participated and we meet with him every 6-8 weeks to track progress. Our focus is on targeted interventions in energy, logistics and law and order, aiming to build government capacity, open private sector investment, boost national confidence and improve lives. This aligns with BUSA’s dual role of policy advocacy and working with the government on national priorities to promote responsible and sustainable business. BUSA also represents business globally, including the International Organization of Employers, the International Labor Organization, the OECD’s BIAC and the B20, which we will chair next year.
How does BUSA view the impact of South Africa’s new government of national unity on investor confidence and economic growth? What opportunities might this coalition create for businesses?
Before the elections, we emphasized the need for an outcome that could unite the country. The electorate signaled distrust in any single party but supported free-market proponents like the African National Alliance (ANC), Democratic Alliance (DA) and Inkatha Freedom Party (IFP). The message was clear: work together to deliver. We were pleased to see the ANC and DA, despite earlier refusals to collaborate, act maturely and prioritize the country post-election. Unlike other nations where fractured results delay governance, South Africa formed a functional government in just two weeks.
At BUSA, we are committed to supporting the government of national unity, as it represents the center our country needs. We have started collaborating with ministers from both the ANC and DA, and there’s a noticeable shift in attitude. Ministers who were previously hesitant to work with the private sector are now more open. For instance, the new Minister of Trade, Industry and Competition recognizes the need for business collaboration and the Home Affairs Minister is addressing visa backlogs with a more transparent system, aided by private sector resources. We see progress in key areas: energy improvements, increased rail freight and a more cooperative government approach.
Inflation and interest rates are declining, signaling positive momentum. Investors and rating agencies are noticing these changes and while challenges remain, the trajectory is encouraging. Political parties recognize the importance of unity. For example, the DA, which initially planned to challenge the National Health Insurance Act in court, has decided not to proceed, prioritizing collaboration. Similarly, the DA and the president have agreed to address concerns with the new Basic Education Act through dialogue. The president has also committed to engaging with business on the NHI Act, showing a willingness to collaborate. These developments signal progress and demonstrate to investors and the global community that we are working together. A recent example is the Trade and Industry Minister’s delegation to Washington to address African Growth and Opportunity Act (AGOA) concerns, reflecting a united approach.
We engaged with the American Chamber of Commerce, with whom we have an MOU, which advised us to emphasize that South Africa’s new government represents unity, with the ANC, DA and others working together. They recommended including DA representatives in the delegation to Washington. I relayed this to the minister, who agreed to take a DA deputy and two senior business leaders. The delegation, led by the minister, presented a united front, which resonated well in Congress. Business leaders confirmed the trip’s success. This collaborative approach is yielding positive results, but we remain vigilant. We’ll continue partnering with government dynamically — supporting progress while holding them accountable when necessary.
Can you share a recent example where BUSA’s influence has positively impacted the South African business community?
Next year, South Africa hosts the G20 and BUSA is leading the B20, which offers a prime opportunity to promote the country as an investment hub. We aim to make this an African B20, engaging with CEOs across the continent to bring their priorities to the forefront. This timing aligns well with our recent collaboration with Brazil, which hosted a successful B20 summit. In 2026, the U.S. will host and we plan to highlight Southern Hemisphere priorities as we hand over. Additionally, the government of national unity is making it easier for businesses to engage directly with ministers. For example, we have made progress on addressing the backlog in mining exploration licenses, paving the way for significant investment. We have been addressing challenges with tourist visas and skills immigration. The minister is now working to clear the visa backlog and set clear, public criteria for skills immigration — making it easier and more transparent. If you meet the criteria, you can work here; if not, it’s clear what’s needed.
Simplifying the tourism visa process and digitalizing applications will boost South Africa’s tourism sector. Progress in mining exploration licenses and easier importation of skills will have a major impact on investment. Previously, companies faced long delays in bringing key talent, like CEOs, into the country. Through the president’s office, we have worked to resolve this, ensuring these issues won’t recur. These developments are all positive for business in South Africa.
What are South Africa’s key strengths as a business destination for investors and entrepreneurs?
We are working with the government to address youth unemployment, which is a significant issue. We are focusing on sectors like tourism and business process outsourcing and initiatives like Youth Employment Services are helping by offering internships, training and job placement. Many participants are now running small businesses or operating drones.
For investors, while South Africa’s infrastructure is relatively strong compared to the rest of the continent, port efficiency has declined. However, efforts to improve this are underway, with Transnet allowing companies to enhance port operations. Container waiting times at Durban and Cape Town have decreased. We are addressing structural issues that have raised concerns among investors and focusing on sectors to help reduce unemployment, which, if left unaddressed, could lead to instability. Through collaboration between business and government, we’re creating significant opportunities for both local and international investment. Key sectors include tourism, business process outsourcing, agriculture and mining. In agriculture, we are removing barriers to technology improvements, while mining exploration, which has been stagnant for 15 years, is being expedited.
South Africa also has a strong financial sector, now improving for non-bank financial institutions, especially fintechs. These sectors provide great potential for businesses in Africa, offering a full range of financial services, with opportunities for smaller businesses to leverage fintech solutions.
With over 600 American companies in South Africa, how does BUSA support them and what initiatives or partnerships drive this growth?
Most U.S. companies here are members of the American Chamber of Commerce, which is part of BUSA. The Chamber handles most issues for U.S. businesses, but they can leverage our work and many already do. We view the U.S. as a key trading partner and despite global geopolitics, we aim for balanced relations with both the U.S. and emerging southern blocs like BRICS. We will see how the new U.S. administration prioritizes Africa. While it’s not high on the list, we expect the relationship to continue, particularly with initiatives like the President’s Emergency Plan for AIDS Relief (PEPFAR).
However, we want to move beyond development-focused investment and shift towards real business and job-creating investments in Africa and South Africa. For U.S. companies, the American Chamber is the first point of contact. BUSA supports them by unblocking issues, but we don’t directly intervene unless requested. We encourage U.S. companies to join the Chamber, and we’re happy to facilitate when needed. We hope the U.S. maintains its focus on Africa and prioritizes real investment that creates businesses and jobs, rather than development aid.
There is often a gap between campaign rhetoric and actual policy. We will monitor early decisions and proceed accordingly. We will continue advocating for AGOA through Congress and the American Chamber of Commerce and support U.S. socioeconomic initiatives like PEPFAR in Africa. AGOA has been crucial for South African exports to the U.S., offering duty-free access to key sectors. If Trump changes this, it could be a problem, but for now, the bilateral relationship is working. While improvements can be made, we shouldn’t fix what’s not broken. If issues arise, we will work with our government to address them.
What are your concluding remarks for USA Today readers considering investment in South Africa?
South Africa has amazing opportunities for investment and tourism. We are the most diversified economy South Africa offers great opportunities for investment and tourism. We are a key entry point for businesses looking to invest in Africa. Despite challenges over the past 15 years, we have made significant progress. Transitioning from a single-party to a multi-party system has been challenging, but manageable. We have a dynamic business sector with strong government relations and organizations that help investors navigate the landscape. While regulatory issues have constrained private sector growth, we have made strides and the trajectory remains positive.
We launched phase two of our partnership with the government, the president’s involvement and 140 CEOs. We focus on our role, not government tasks, and aim for this initiative to be fully institutionalized by next year. There is pressure to address water and municipal government crises and we are exploring how we can support this with private sector expertise and resources. We attended the B20 Summit in Brazil, where the interest in South Africa was exceptional. The interest in South Africa hosting the summit was overwhelming and it highlighted the strength of our business-government partnership. This unique collaboration is a key asset for investors and they should view it as a positive, as it benefits them to be part of this partnership.