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Fulfilling her patriotic dutyWho would say no, if asked to control billions of South African rand? The prospect of having power of that kind of money would be appealing to just about anyone. And when that question was put before Philisiwe Buthelezi, she said yes, just like anyone else would. The key difference, of course, is that the billions in question are not for her own benefit, but for the greater benefit of South Africa as a whole.
Buthelezi is the chief executive officer of the National Empowerment Fund (NEF), an agency designated by the Department of Trade and Industry (the dti) to enable, develop, promote and implement innovative investment solutions in the interest of sustainable black economic participation.
It is a job she takes very seriously, one she calls her “patriotic duty”.
Buthelezi returned to South Africa in 1992, after having worked for a French investment bank in London, when she joined the supervision arm of the South African Reserve Bank – taking responsibility for risk management control. A year later, she joined the treasury division of Standard Corporate and Merchant Bank before moving on to the dti.
Given her excellent credentials working in Europe, her task was to promote European investment in South Africa. She excelled in the position and, in 2002, was selected as the department’s chief director of black economic empowerment, during which time she was a key figure in the drafting of the broad-based black economic empowerment (BBBEE) policy, a task that she credits as one of her career highlights: “That was a groundbreaking achievement for me.”
With that experience behind her, Buthelezi seemed the ideal candidate for the position of CEO of the NEF – a position she ably juggles along with her role as chairperson of Group Five, as well as sitting on the boards of Mvelaphanda Group Limited and Afripalm Resources.
Having been at the helm of the dynamic NEF for close on seven years, she says that “it has been (an) especially rewarding period, working with an accomplished board, a consummate executive and first-rate staff.”
As an empowerment agency of the dti, the NEF was established in 1998 through an act of Parliament. The mandate of the NEF enjoins it to facilitate and promote black economic participation. The two-pronged mandate is executed by providing financial and non-financial support to black-empowered businesses and entrepreneurs on the one hand, and to promote a culture of savings and investment among black people.
Buthelezi’s excellent education (she has degrees from University of Sheffield and Paris-Sorbonne University, among others), experience, leadership acumen and fervent drive to improve the lot of the economic under class have proven invaluable in the NEF’s mission. “As the CEO of the NEF, I am passionate about ensuring the NEF’s products and services reach the length and breadth of the country. This is not only important for our economy, but for South Africans as a nation. This will assist in bridging the divide, ensuring black participation within the economy, and promoting the necessity of saving,” she believes.
Despite the good work that the NEF has done over the years, she concedes there is more that can be done: “We have made progress, but it’s still a drop in the ocean.”
Buthelezi explains that when she participated in the drafting of the BBBEE policy, the intent was two-pronged: the development of the economy as a whole, and an increase in black ownership. “The two policies were supposed to be interrelated,” she adds.
As time passed, however, “there has been this focus on the narrow definition of empowerment, which just focuses on the ownership aspect of empowerment,” says Buthelezi. Going forward, initiatives need to look at recombining those two intentions.
“How can we actually grow the economy as we implement our broad-based black economic empowerment policies?” she puts forward.
But even taking that into account, there is the problem of dealing with companies that try to circumvent the spirit of BBBEE, by exploiting loopholes in the policy through practices such as fronting. According to Buthelezi, this has not quite been an issue for the NEF, with most businesses being very honourable in their intentions and sincere about moving forward with BBBEE.
A greater issue, she contends, is basic ignorance. Entrepreneurs simply do not know where to begin when intending to start a business. “Which is why the NEF has come up with the Enterprise Development Fund (EDF), which will be a partnership between the NEF and some of the corporates in the country that are looking at the creation and the growth of small enterprises in South Africa,” she says. Big business will be helping smaller business start up.
Unlike other empowerment agencies, the NEF raises a portion of its funds thanks to contributions from big business, which will invest 3% of its annual profits toward the venture.
The NEF has already received funding of R2.3 billion from the National Treasury, and is looking forward to a potential cash injection from the top 40 companies on the Johannesburg Stock Exchange –an amount that could possibly exceed R5.3bn.
“I would say the willingness is there,” says Buthelezi. “The NEF is saying to corporate South Africa: we have the infrastructure, we have track record – let’s partner.”
Recently, her innumerable achievements were honoured by the Businesswomen’s Association of South Africa, with the accolade of Businesswoman of the Year in the corporate category – much to Buthelezi’s surprise: “It was a shock!”
Though she does admit taking pleasure from the praise, it does not happen by itself; one still needs to put in the effort. “I was very, very delighted by the award. But you actually have to work very hard toward the achievement of some of these things,” she adds.
While her name may be engraved on the award, it does not take away from the achievements of her fellow nominees. “(This award) was for all the other women who are making a difference, especially when it comes to the upliftment of women who have nothing,” she says. “I was humbled.”
And this sentiment seems to be the creed that permeates her entire work ethic. It is clear she considers her position as the CEO of the NEF as more than merely a job – it is a duty that she has been fortunate to be charged with.
“It was a real honour for me when the then minister of Trade and Industry gave me the opportunity to lead the establishment of the NEF. I am sure other people who have been at the helm of private equity firms take it as fait accompli that you are given the responsibility and you run with it. But they need to understand that the mandate given to the NEF is a very unique one: you are dealing with entrepreneurs who have never had any exposure to the (business sector).”
One cannot help but tip one’s hat to a person who is in control of billions of rands, and all she does with it is help others.
Zaid Kriel
