Investec's Stephen Koseff: New mining charter unsustainable, crazy

Stephen Koseff told a business breakfast on Tuesday that government should steer away from populist phrases and ideologies

Investec CEO Stephen Koseff. Picture: Vimeo

JOHANNESBURG - While African National Congress (ANC) Treasurer General Zweli Mkhize calls for more collaboration with the private sector, Investec's CEO Stephen Koseff says the controversial Mining Charter is a clear example of a breakdown in communication.

The relationship between the private sector and government has come into sharp focus on day five of the ANC's national policy conference in Nasrec.

Koseff told a business breakfast on Tuesday that government should steer away from populist phrases and ideologies.

Investec CEO says populist policies must be done away with.

He says the new Mining Charter is simply unsustainable, describing it as crazy.

“It is disappointing that we have a flip-flop on policies and, certainly, regulations have been chaotic. More recently we have seen the Mining Charter which we believe as business was crazy and ultimately puts off investors.”

However, Mkhize responded by saying that radical economic transformation is a mandate given to the ANC by the black majority who remain excluded from the economy.

“Don’t worry about the tab because it doesn’t come from you, it comes from those who feel squeezed by the economy that is not transforming.

Mkhize says he believes the private sector has shown more commitment to transforming but not all businesses feel the same.

THE DANGER OF CREATING POLICIES BASED ON POPULIST PHRASES

Koseff has cautioned the ANC against creating policies based on populist phrases, warning they won't serve the country’s economy.

Koseff says the private sector and government both agree on building an inclusive economy.

He says more debate is needed on how to achieve this.

“Populous policies are not the way to go. They have disastrous long-term repercussions. It would be a tragedy if we were to blindly follow outdated and failed ideologies”

Mkhize said transforming the economy is in the best interests of all South Africans.

"There has been a lot of engagement with the private sector and now there’s corporate understanding of this radical economic transformation.”

Mkhize admits that populous phrases won’t help when actual implementation is needed.