After the founders: Will Coega and East London special economic zones thrive?
In the last year, Coega Development Corporation longtimer Themba Khoza took over the reins as CEO of the corporation with Advocate Luvuyo Bono (DBA) assuming chairpersonship of the board. At the East London industrial development zone, another longtimer, Thembela Zweni, has succeeded Simphiwe Kondlo as CEO, with businessman Motse Mfuleni becoming the chairperson of the board. A range of other changes have taken place at executive levels in both organisations, signifying the bringing in of new blood and continuity.
Transitions can be life changing for the survival of organisations, just as substitutions in sports games may make the difference between success and failure. As such, they bring excitement and concern.
From a demographic perspective there is a generational shift in both executive and non-executive roles in most instances. I have had the privilege of watching some of the key individuals now in charge of these institutions grow professionally for the past 20 years, some in proximity and others at a distance. In many ways, it is fitting to see them succeed some of the leaders they themselves admired, worked with, or whose tutelage they were under.
Perhaps some context is crucial. The special economic zones of the Eastern Cape became a crucial part of South Africa's attempt to drive export-oriented industrialisation within the first decade of democracy.
First conceptualised in the passing of spatial development initiatives, they were among the first to attempt to broaden economic activities away from the three major metros of Johannesburg, Durban, and Cape Town. Development at the coast would not only ensure the hitherto marginalised regions would start seeing significant investments, they would also help accelerate the path towards export-oriented industrialisation.
Forerunners
That initial thinking morphed into the erstwhile Industrial Development Zones programme. Coega and East London were forerunners in that both were officially declared in the early 2000s.
We could interpret the significant part of the early leadership of the SEZs to what one may call 'the old boys of St John's College' in Mthatha. Pepi Silinga and Simphiwe Kondlo both took over the reins as the concepts were gaining shape to lead the execution phases. They worked together with their corresponding business chambers and regional stakeholders from politicians to unionists.
Key competencies at the time were as much about running infrastructure development and investment promotion initiatives as they were about the political acumen to mobilise resources.
The latter was needed to ensure the survival of the organisations amid a barrage of attacks from stakeholders who were not completely convinced that the regions needed the nature of heavy industries that were the apparent anchor projects for these zones.
The two chairpersons of the boards of the two entities are middle aged executives who have extensive experience starting and growing their own businesses, as well as serving on various boards. This entrepreneurial as opposed to a strongly corporate background should bring into the organisations a leadership approach that is adept, especially in survival skills. Those remain despite the long stint the organisations have had as running concerns.
The organisations have never derived value from passive boards. Yes, the executive leadership of the entities has had great autonomy and space to lead operations without interference from the boards. However, the boards were never passive when it came to resource mobilisation and behind-the-scenes stakeholder engagement to guarantee a steady flow of resources.
Further, politics is primary in development, and the CEO and chairperson of the board need to manage effective political relations close enough to mobilise support, but distant enough to avoid the trappings of the patronage networks that incumbent political leaders sometimes induce.
In a conversation I had with Premier Oscar Mabuyane about where the Eastern Cape is and its ability to keep on securing resources and allocating them to our key projects, he was quick to point out that the fiscal instruments are no longer the same and the need for mutual collaboration has become greater now than it was back when these projects received significant allocations from the provincial government.
We may not know the full behind the scenes details of these leaders, but their public exploits have been amazing. Mfuleni has grown his business in leaps and bounds. He has stayed the course in events management and other sectors and has been on various boards over the past 20 years, adept in both business and political acumen.
Freedom
Bono has had a long stint in business too, opting to remain outside of the mainstream routes in the legal profession so he could retain the freedom to focus on international labour law, business, and running his practice, among other things. They are positioned to champion the sustainability causes of the organisations they lead.
Khoza and Zweni strike me as first and foremost stewards who will honour the legacies of their predecessors and bring in their own leadership to achieve greater success. This dual task is crucial. A sense of burden to distinguish oneself from the predecessor may lead a successor to stumble. Since they worked a long time with their predecessors, one expects that they remain inspired by their efforts as they are motivated to achieve a greater mission.
As such, there should be recognition at the board level that these organisations have built significant internal leadership capacity to be left alone to continue to run operationally, while concurrently nudging them to stretch towards new aspirations as dictated by the times.
There is a need to ensure rapid success, and much of the momentum gained over the years does position the organisations for greater success. Yet there is a need to adopt a strategy to push the organisations beyond their self-determined objectives, given the sense of urgency for radical change that the province dictates. DM
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