THE starting point of any successful turnaround is leadership. This is true in a business, a municipality and a country.
When an organisation begins to deteriorate, its systems often fail first. Good people then leave and physical assets and equipment decline. Turning that situation around requires the same sequence in reverse: appoint the right leader; restore effective systems and procedures; place capable people in the right roles; and address the infrastructure and assets that have been neglected.
However, leadership is not only about occupying a position. It is about taking responsibility, making decisions for the right reasons and creating a culture in which people can perform. Leaders must be prepared to confront difficult realities without allowing ego, bureaucracy or personal ambition to dictate their actions.
In business, acquisitions driven by the desire to become the biggest player or gain market share can be dangerous. Investment decisions should be guided by strategic fit and the ability to generate sustainable returns over time. The same principle should apply to public leadership. Decisions must serve the country and its communities, not individual interests.
Businesses operate in communities, and we cannot succeed indefinitely if those communities and municipalities fail.
Afrimat’s experience in Lichtenburg shows what’s possible when business gets involved constructively. The first response should not simply be to give money. It should be to identify practical problems and contribute relevant skills and capacity. Businesses in the area have become involved in repairing roads, addressing water-related problems and fixing pumps. Afrimat has provided access to competent artisans who know how to get the work done.
There can be suspicion between municipalities and businesses at first, understandable in an environment where trust has been damaged. Yet the experience in Lichtenburg also shows that perceptions can change and that business support is welcomed when relationships are built and the parties work towards a shared goal.
Stronger together
This is the culture shift we need in South Africa. The government should not view business participation as interference, and business should not approach the government as though it has all the answers. Each party brings something necessary. Municipalities provide the mandate and local understanding; businesses can offer technical expertise, systems, artisans and practical execution capabilities.
The objective must be measurable improvement in people’s daily lives — roads that function, reliable water infrastructure and local economies in which businesses can invest and create opportunities.
The relationship between business and the national government must also become more focused on implementation.
South Africa needs policies that support entrepreneurship, investment, industrial development and local value creation, accompanied by decision-making processes that do not cause unnecessary delays.
We need to reindustrialise. South Africa has significant mineral resources, but the opportunity extends beyond extracting and exporting them. There is potential to add value locally, including through projects that could process minerals and support new industries. Afrimat’s exploration of rare earths at its Glenover venture is an example of the possibilities.
Infrastructure and logistics will be central to unlocking these opportunities. In the Northern Cape, for example, the constraint is not simply the availability of mineral assets. Limited rail capacity restricts the ability to move products to market. Better co-ordination between the government and business can help ensure that viable investments are not delayed or lost because supporting infrastructure cannot be approved, funded or delivered.
We should also recognise the good things that are happening.
Transnet is one of the most encouraging turnaround stories I have seen in a long time. Under its current leadership, procurement has become more direct, maintenance is receiving attention and rail reliability has improved significantly. The maintenance backlog remains substantial and will take time to clear, but the improvement is visible both to suppliers and users of the rail system.
We are also seeing activity in road building around the country. Afrimat’s aggregates businesses, which are locally focused, are experiencing increased demand associated with roadworks and rail maintenance. Rural KwaZulu-Natal operations have been particularly busy, with activity linked to the department of transport and local authorities.
These developments do not mean that South Africa’s challenges have disappeared. Payment delays, maintenance backlogs, logistics constraints and policy obstacles remain. But leadership means acknowledging problems while also recognising progress.
The opportunities are there
When good things are happening, we should say so. If South Africans tell only negative stories, international investors will hear only those stories and will have little reason to invest here. We must be honest about our challenges, but honesty also requires us to speak about improvements, opportunities and successful turnarounds.
South Africa remains a mining country with deep expertise, strong mineral assets and considerable entrepreneurial ability. There are opportunities in iron ore, chrome, manganese, magnet and battery minerals and other resources, as well as in beneficiation, industrialisation and infrastructure development.
The country’s future will not be secured by optimism without action, nor by criticism without solutions. It will be built by capable, accountable leadership; trusted partnerships between government and business; practical policies that encourage investment; and a culture focused on execution.
The opportunities are here. Our responsibility is to lead well, work together and tell the complete South African story.
Van Heerden is CEO of Afrimat
