Vukani Mngxati | CEO | Accenture in Africa | mail me |
Yashwin Bhoola | Managing Director | Supply Chain and Operations | Accenture in Africa | mail me |
ALONG with responsible, like-minded, and frightened South Africans, we looked on in growing horror two weeks ago as parts of our county were engulfed by acts of public violence, flames, and wanton looting. More tragic is that so many lives have been lost.
No society likes to see the deployment of the military and the negative apartheid-era optics associated with it. Still, in this case, it was to be welcomed with the strong caveat that a measured and tempered approach needed to be taken by the soldiers deployed.
The massive financial losses incurred as factories and warehouses were damaged and looted are of great concern to the broader business community. Supply chains are broken. The impact on operating costs is severe, and many small businesses will simply not survive. On a wider scale, the ratings agencies are aghast, and no doubt are scrutinising data that could result in further downgrades, the consequences of which are familiar to all of us.
As we begin to rebuild, leaders must come to the fore and stand together. Unfortunately, the President is swamped with dealing with a runaway variant of the coronavirus and the economic misery it is leaving in its wake. It could take years for our battered economy to recover.
Asking the right questions
While government representatives visit trouble spots and give comfort and reassurance to those whose lives have been affected by the violence, the business community is standing ready to continue to help where it can.
The government needs to shed some light on three key aspects:
- What role does the government need business to play right now?
- Is it happy for businesses to partner proactively in this crisis?
- Will our advice be taken in dealing with the economic ramifications?
One cliched definition of leadership is framing a challenge, taking counsel, and rolling up one’s sleeves. As Ghana’s former President Kwame Nkrumah bluntly said, “Action without thought is empty. Thought without action is blind.” I fear we are not giving this crisis of violence enough deliberation, but if we reflect for too long, we will be in deep trouble.
An effective long-term plan with details of how and when it will be executed is needed. In the harsh midwinter of 2021, South Africa faced a profound crisis of intolerance, anarchy, and indecision. However, this can only be mitigated with ongoing decisive and resolute leadership.
So, what in effect would constitute this plan?
In our minds, a one-day national recovery colloquium led by Business Unity South Africa and Government could begin the process by asking how this happened, how to prevent it in the future and how to help small businesses? Then we need to establish a high-level SAPS/Justice department team to fast track investigations and ensure consequences for the criminality.
We would want to see more engagement with SA’s tech sector to improve the co-operative capability to enhance future intelligence gathering and also the creation of a short-term permanent supply chain tactical unit to safeguard the KZN/Gauteng route – SA’s most vulnerable supply chain route.
As business, we need to secure our supply chains and reassure the investment community based on solid data and good insights. Companies with robust supply chains are showing resilience through tough times. South African businesses must now strengthen their supply chains to meet their customers’ needs and secure business continuity.
What can businesses do to make better supply decisions now?
Businesses must be able to…
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Read the full article by Vukani Mngxati, CEO, Accenture in Africa, and Yashwin Bhoola, Managing Director Supply Chain and Operations, Accenture in Africa, as well as a host of other topical management articles written by professionals, consultants and academics in the August/September 2021 edition of BusinessBrief.
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