Busi Mabuza has just been appointed Chair of the South African chapter of the BRICS Business Council. Also the chairperson of the Industrial Development Corporation, she speaks to FORBES AFRICA about her plans for trade and investment.&nbsp; 



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What is your first point of focus as the chair of the South African chapter of the BRICS Business Council? 



It is still early days. I am just lucky I was appointed to
the BRICS Council last year… In my few months, my sense was that the sister
countries in BRICS were much more organized in terms of what it is they are
looking for and in bringing a coordinated voice of business. We were still
trying to get there in terms of coordinating our efforts and channeling our
objectives and making sure we agree on the priorities.



I look forward to, first of all, picking up from where
others left off. This is a council that has been around not long after 2010,
and it has a long-enough track-record. 



I think where things have been done well, we just need to
make sure they are done better. Where there are gaps, I’d like for us to close
those gaps. On the administrative side, I have noticed our sister countries,
the business councils of the other countries, are much more coercively
organized, more streamlined, business has a very strong voice and business
facilitates all of it. 



I would like to see that engagement with all corners of
business, big and small. I think there is room for everybody there. If one
looks at the African continent, the majority of the population is young people.
If we sit in those meetings without understanding the voice of the youth, without
talking to and addressing the issues of the youth, we will be left behind. 



I think it is an opportunity to make sure business rolls up
its sleeves and we actually benefit from the linkages our political principles
have cemented. 



As a woman in leadership, how will you navigate this space? 



It is one that also challenges me ideologically. I never wanted to be labeled ‘the first black woman [in anything]’, and yet I have worked most of my life in environments where it has been lonely just by the mere fact that when the guys are talking rugby, I want to talk about something else. 



Rugby is great, I also enjoy that, but it is also good to talk about other things. One success factor when one is thrown into such environments is to [bring] others in deliberately. I’d love to demonstrate to the women out there that there are opportunities such as these and we need to be there and we need to show up at our best in terms of our game. 



We need to work diligently because when it comes to the results and output, the assessment won’t be based on whether you are a man or woman, it will be based on what you deliver tangibly. South Africa has an opportunity to make the other BRICS countries aware that women have to be at the table and we do it through our actions rather than just talk. 



What is on the 2019 agenda for business in South Africa?



With this being new days, I believe in consultation. I believe in making sure I understand the mandate I have been given. I understand what the Department of Trade and Industry is about, and their focus on creating export opportunities because that will grow our trade. 



I understand their focus on empowerment, because as a country we do need to see a better profile and reflection of society in the economic space. The focus will continue to be on trade and investment, as we move along, I would like for us to do this in an inclusive manner.



Which sector will South Africa prioritize? 



I would definitely take a cue from the president’s [Cyril Ramaphosa] focus on agriculture. Agriculture is fantastic for this continent because we have land, we have the people and if you look outside South Africa, there is water. The resources are there. 



The other side of the coin is that agriculture can be a great employment opportunity. Agriculture is getting more technical and technology-intensive and that excites me. If we had a trading bloc arrangement, we will be talking much bigger opportunities within the country.

Busi-Mabuza

‘Time For Business To Roll Up Its Sleeves’

Busi Mabuza, the Chairperson of the Board of the Industrial Development Corporation, on the BRICS summit and why we need to start talking as an African bloc.

If there’s one person who knows what’s good for investment, it’s Busi Mabuza, the Chairperson of the
Industrial Development Corporation (IDC), a national development finance institution promoting economic growth and industrial development in South Africa.
Exactly a month after the BRICS Summit, which brought together Brazil, Russia, India and China to South Africa in July, we met with Mabuza for her views on why such forums are key for Africa:
What, according to you, was the biggest outcome of the BRICS Summit?
The countries’ focus was on attracting investment, so we had presidents of the BRICS countries coming with goody bags to the country, especially President Xi Jinping who made quite a substantial commitment to investment in South Africa. What I liked most though was the ‘BRICS Plus’ approach. The invite to other African countries to be part of some of the sessions of BRICS, because with the Continental Free Trade Area Agreement, I think we need to start talking as an African bloc.
South Africa has a minute population compared to the other BRICS countries for us to be an attractive preposition to those large economies….we have to speak with the voice that talks for the rest of Africa as well. I also liked the fact that there was conversation in a concerted [way] at a BRICS women’s forum…I didn’t see the evidence of it taking shape yet, but the fact that it was a topic of discussion, that there were initiatives around it…I think is very promising and exciting.
One of the conversations at the conference was the focus on an open economy, what would that mean for South Africa and the rest of Africa?
We should have free trade between the BRICS partners and South Africa, precisely because South Africa is quite a small economy compared to the BRICS partners.
We export raw material to those countries, they export into South Africa finished goods. So the trade still needs to be developed. We need to migrate upwards in terms of our trade mix and portfolio mix, so that if the economies are open, if the trade is open and the tariff barriers are done away with, then it shouldn’t be to the detriment of one economy. There has to be a win-win complementarity.
The other aspect I think very important is the movement of people. We have visa requirements sometimes which are quite onerous and I think there was a lot of time dedicated to talking about those obstacles. People find that when they have investments in South Africa and bring professionals to the country, they can’t stay for a long enough period for them to actually get the business up and going before they go back in order to meet the visa requirements. I think the government is making a concerted effort on that front in trying to make sure visa requirements are not as stringent and do not become an obstacle for our trading partners.
As African countries, we now need to start working towards bringing down all the tariffs, trade tariffs and the non-tariff barriers between exchanging goods and services amongst the different African countries. It’s going to take long because some of the issues are quite complex…So that would be my understanding of opening up the economy. I think there are risks on the one side and opportunities on the other side. What’s important is we move in an orderly fashion and ensure that as we do so, there is a win-win proposition for all countries.
How important are summits such as BRICS for South Africa?
It feels as though we are reintegrating into the rest of the world. I think we were almost at some stage a pariah state but I think the fact that we have been received so warmly since the new president [Cyril Ramaphosa] early this year is a great positive because it means there’s a lot of goodwill in the rest of the world for us.
South Africa’s economy has been sluggish, mainly because of lack of investment. There are other challenges. Our unemployment rates are shocking. I was looking at the statistics compared to our BRICS partners – we are at 27% officially…The need is for us to attract not just the political goodwill of the BRICS partners, but their hard cash into the economy. Not just the portfolio flow – we are not looking for people who are going to buy shares on the stock exchange and sell them as quickly as they bought them if things go wrong – we are looking for people who will bring projects into South Africa, people who will create jobs for South Africans.
[For example], the Chinese, are known for bringing their local projects that they build in countries. But I think as long as the balance is a significant majority – South Africans employed in those projects – then it will be to our benefit. Then there are opportunities for us to show them a thing or two. We do well as far as women’s representation is concerned, not in the private sector, but in the public sector; we are still ahead of our BRICS partners.
You will be amazed that our rail and road infrastructure in terms of area is way ahead of the other countries. So there are opportunities for us to see whether our skill is taken to those countries.
At the IDC, how do you promote women in business and youth?
In the recent past, we have realized something we should have known a long time ago. People focus on what is measured, and we have therefore started measuring the amounts that are collected and dispersed to youth-owned and women-owned businesses and that has done wonders for us. Four years ago, we didn’t know how much of our funding was being dispersed to companies owned by women or was being dispersed to companies owned by young people.
Now, because management is incentivized to disperse a certain percentage of our funding to women-owned and youth-owned businesses, we are seeing more and more. There are years when – I think it was the previous financial year – we overshot our targets in terms of the amounts dispersed to youth-owned and women-owned businesses. We of course pay attention to our employment equity profile within but we also look at the employment equity performance of the businesses we invest in. That’s a space where we have seen sluggish progress but I think now that we are focusing on it, when people come and look for investment, we probe their employment equity profile. We see male management teams and we ask them why and how long it’s going to take them to bring in female talent and young people. And I expect that we will start seeing a shift on that front as well.
And if the IDC portfolio companies start living as good examples of what this country should be doing more and more, then I will be happy.
In August, the IDC approved a funding of R16.7 billion ($1.1 billion). What kind of businesses will that money go towards?
The companies are diverse. We need to be focusing on industrial development and a significant majority of the companies that benefitted from our R16.7 billion disbursement were industrial companies. However, because of where the economic cycle is, there’s quite a number of distressed companies. We’re a development financial institution, therefore, we would like to think of ourselves as patient investors. And where companies are distressed, but we can see there’s an opportunity to be viable down the line, we want to support them…
What are the new industries the IDC is currently looking at?
In fact, we have a new division called New Industries. We have recognized that for IDC and South Africa to remain relevant, we need to understand the 4th Industrial Revolution.
The new era businesses cannot be valued in a similar fashion as one would value the retail company where you look at the profits and you say ‘ok, the business is doing well’.
There, you look at the technology, you look at the potential of that technology and you support the business on that basis.
I was fascinated there is a company in South Africa working in the Internet of Things (IoT) space because it is tempting to assume that those new technologies are just being developed in the rest of the world but that South Africans have actually started companies in that space is exciting for me.

BusiMabuza_GL

Why We Need ‘Hard Cash In The Economy’

<h2>Q&amp;A With… Busi Mabuza</h2>
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<h4>IDC Chair Busi Mabuza on diversity and development.</h4>
<ol>
<li>
<h4>There are many female executives at the top at the IDC; how is the organization driving gender to resolve challenges in the African economy?</h4>
</li>
<li>The pleasing part is that the more we improve, the more we see opportunity to get better. Just over half of our staff complement at the IDC is female. We have focused on nurturing talent in a fair and equitable manner. The CEO [Geoffrey Qhena] pays specific attention to promoting equity in the management and executive levels of the organization. My interest is to also ensure that our professional level, which is our natural leadership pipeline, continues to be representative.</li>
</ol>
<h4></h4>
<ol>
<li>
<h4>How does the IDC develop female entrepreneurs and ensure they contribute to the economy and nation-building?</h4>
</li>
<li>The funding of women-owned business is one of our specific corporate key performance targets which we monitor and report on. This has focused everybody’s mind and is an integral part of our conversations at board meetings. We recently hosted a conversation session with women entrepreneurs specifically focusing on manufacturing. Management is now synthesizing the very constructive inputs received. We aim to be an accessible funder and to be one of the first ports of call for entrepreneurs requiring funding in our areas of focus.</li>
</ol>
<h2>Zama Luthuli</h2>
Past the tight security at the Industrial Development Corporation’s (IDC) stately headquarters in Sandton, Johannesburg, and up a couple of floors, we meet Zama Luthuli as she steps out of one of the glass-enclosed offices. She is slender, in a striped skirt and killer heels; one could have easily passed her off as a model.
Luthuli laughs when you suggest this. She has considered becoming a model and owning her own makeup and clothing line, she admits, so we are not far from the truth.
At 40, this self-confessed fashionista is the IDC’s youngest executive. As Divisional Executive: Corporate Affairs, she holds a critical role. This is evident when she points to the files she has in front of her, of entrepreneurs the IDC has developed. She speaks animatedly about them. This job, clearly, is more than a job for her.
“I see it as a contribution to the continent,” she says, which makes the long hours and lengthy Exco meetings worthwhile.
“It’s something bigger than us, it’s about other people. We work long hours, we get so tired but we look at people’s businesses and see the impact in their lives, and then the long meetings no longer matter.”
The IDC is a 75-year-old national development finance institution in South Africa set up to promote economic growth and industrial development.
Luthuli was only 37 when she assumed an executive role for the first time, in her previous job, at PetroSA. She joined the IDC in July last year, working with four heads in marketing, CRM, CSI and facilities management. Her work is in perfect alignment with her goals.
“A woman’s role is in the kitchen? A woman’s role is in bigger kitchens nowadays, [kitchens] that make stuff, create stuff and create employment,” says Luthuli, referring to the umpteen factories and industries that women lead today.
It’s a far cry from when her mother struggled to send her to university. Born in KwaZulu-Natal, Luthuli worked very hard in order not to disappoint her mother, and graduated in communications.
Thereafter, she says she was always fortunate finding employment.
That’s also because she was willing to take risks. “I always knew I wanted to be in a corporate environment.”
But she has a piece of advice for young people. “If you want a job, make one,” she says.
“With challenges, you learn, you grow, you adjust. There will be a woman who has been there before, so rely on her skills. It’s important to have a mentor. You need to understand the lay of the land, understand the organization.
“And always look for a business opportunity in what you do while you are employed. There are so many creative ideas we encounter on a daily basis. Whilst you are working, work on your dream, work on an idea, have a back-up plan.”
What are some of the most offbeat entrepreneurial ideas Luthuli has seen come her way?
“We find quite a few blueberry farms in South Africa!” she offers.
A single mother, with two girls aged 13 and nine, Luthuli says it’s important to rely on support systems. She took up an MBA degree after the birth of her children. But in the end, it’s about finding what works.
“Balance is something you create that’s relevant to your own situation and environment. Balance is also taking into account your own personal journey at a given time.”
The articulate executive says she has gone through enough pain and loss in her life that she knows it’s teaching her something every day.
“Our challenges may be different but let’s not dim our lights, let’s help each other,” says Luthuli, and you know that’s exactly what she’s doing at the IDC, lending her creative energies and late hours for Africa and its people.
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<h2>Lizeka Matshekga</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-32014 size-large" src="http://www.forbesafrica.com/app/uploads/2017/05/IDC-046-1024x681.jpg" alt="" width="1024" height="681" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/IDC-046.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/IDC-046-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/IDC-046-600x399.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/IDC-046-768x511.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" />
Ten minutes into the interview and it’s easy to tell Lizeka Matshekga is a soft-spoken powerhouse. While that may sound an oxymoron, this is a person with enough years in the financial services industry and multiple accolades in her trophy cabinet.
“I don’t want to call it success,” says Matshekga, with a quiet confidence.
“I am hungry. When you have hunger, you keep growing. I am hungry for information and knowledge. It has nothing to do with success. It’s really about wanting to know more every day.”
Matshekga has been with the IDC for 10 years, and is the Divisional Executive of Agro, Infrastructure &amp; New Industries.
With a master’s degree in Development Finance from the University of Stellenbosch, an honors degree in Financial Analysis and Portfolio Management from the University of Cape Town, and a BCom degree from the University of Western Cape, she has had 22 years in the financial services sector, in areas such as investment banking, treasury, turnaround and restructuring management, BEE financing and post investment management.
Last year in November, at the IDC, Matshekga scooped four awards, the most anyone won that year.
From Gugulethu, a township in the Western Cape, she stumbled into finance studies quite by accident.
“I wanted to be a scientist or doctor. I applied for BCom by mistake. My mother asked me to try it for a week, and I loved it! It was in my destiny.”
Matshekga’s mother, now 68, was a domestic worker who raised the children on her own.
“I had no access to bursaries. It was my twin sister’s biology teacher who helped me get the R1,000 ($73) registration fee for my BCom. It’s people like that I am grateful for today because he saw something in me. That’s the seed I needed.
“I always have this notion that your circumstances do not define your future. Almost every black child has faced poverty in childhood. In Gugulethu, most kids didn’t have hope. I was hungry to make a difference.”
She came to Johannesburg, which further fueled the hunger in her. Matshekga worked with Standard Bank Corporate Merchant Bank, and was with the National Empowerment Fund for three years. She joined the IDC and “has not looked back since”.
“I have been through the entire investment cycle at the IDC,” she says.
In 2011, she was asked to head up forestry within the IDC. She had never been exposed to the sector or been “a deal-maker”, so she thought: ‘how do I start?’
The unit was at its lowest in terms of performance when she took over, going up to “Top 5 in operations in the front office” by the end of the year, remaining that way for a while. Soon, Matshekga was also asked to take over the green industries sector, now called industrial infrastructure. Her mantra?
“I create an environment for my people to feel they are adding value and can be creative. It’s not my way or the highway&#8230; I also don’t limit myself to my focus area, I always look for things beyond my zone.
“I always tell youngsters at the IDC that your mentor needn’t be a senior, your mentor could be a peer. When you have friendships, let it add value. Don’t be shy to ask a team member. There are no stupid questions. You always come out of that engagement empowered.
“I always use the tested approach,” she says. “The IDC has invested so many development tools in ensuring where I am today.”
She is passionate about the new emerging industries of the future, and believes it will be her legacy.
A mother of three children, aged 16, 11 and three, Matshekga puts in enough late nights, knowing the larger purpose of her work. Thankfully, she says she has a supportive husband, which helps as her diary is more hectic than his.

IDC-039

Going Above And Beyond

Busi Mabuza was born in Barbeton, a white town in Mpumalanga, South Africa, but grew up in the townships. At the age of 12, she went to a private Catholic boarding school in Limpopo but finished her matric in Pietermaritzburg.
Her nomadic life was just beginning. Hoping to acquire an engineering degree, Mabuza enrolled for it at the University of Natal in South Africa’s KwaZulu-Natal province. However, this did not happen as she didn’t do well in one of the subjects – engineering drawing – mandatory to complete the course. Undeterred, she commenced a degree in mathematics at the University of the North (now the University of Limpopo); she didn’t finish this either due to the state of emergency declared in 1986 by the old South African government. Mabuza was arrested and then banned from all educational institutions.
With nowhere else to go in South Africa, Mabuza moved to Atlanta, United States, where she had to start her mathematics and computer science degree all over. She worked part-time in the computer room and at a systems integration company. Working helped her realize that she didn’t know much about the business world, so she enrolled for an MBA in finance and information systems.
“The lesson that sticks in my mind is how integrated the world is, and that you have to understand every single economy and product in the global context,” says Mabuza.
She says that big business in South Africa knows this while start-ups are inward facing until the businesses grow or face failure.
“Since coming back into the country I’ve had a fair amount of time looking at the investment environment,” she says.
When Mabuza returned to South Africa, she joined Investec Asset Management in Cape Town, where she learnt all about analyzing companies and management strategies.
In the mid to late 1990s, there was a growing trend towards Black Economic Empowerment (BEE) transactions. This meant she had to start looking at non-listed investments too. This required more contact with management to understand the business and was therefore more personal.
Mabuza moved to Johannesburg hoping to be a BEE queen. After a couple of years on her own, a group of women asked her to join the Woman’s Private Equity Fund, later moving on to Ethos Private Equity, where she became a director.
After three years as a board member at the Industrial Development Corporation (IDC), Mabuza’s appointment as chairperson of the board came as somewhat of a shock to her. She was asked if she would stay on for another term on the board but it wasn’t until the Annual General Meeting that Ebrahim Patel, the minister of Economic Development, pulled her aside to let her know of the new responsibility placed on her shoulders.
The development component of the IDC has a personal appeal to Mabuza. She thinks the IDC will have done well if it has a visible impact on the economy through backing more black entrepreneurs to play a meaningful role in the country’s economy and in reigniting manufacturing. The Department of Trade and Industry launched the black industrialist program, which the IDC will support but not be directly involved in.
She also says we need infrastructure that can continue to attract foreign investment and help local businesses to worry less about basic infrastructure.
The IDC is South Africa’s largest development finance institution with a R100 billion ($8.4 billion) plan over the next five years and Mabuza believes the board is a guide, the conscience of the organization and custodian of values. She says the board will advise the good management team in place and make sure they focus on the necessary sectors.
“I’ve had a very interesting career in financial services,” says Mabuza. And it’s a long way from being over.

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‘Time For Business To Roll Up Its Sleeves’

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Going Above And Beyond

The Boardroom Queen