By March, investors began to get a bit edgy about what was going on this country. Ratings agencies or their equivalent had downgraded our standing over successive periods.
Against this backdrop, the ruling party's ministers began to protest that South Africa was being unfairly judged. The country had systems in place, they said, which had enabled growth during difficult global economic times.
At the same time, the media was awash with tales of division within the ranks of the ruling party around critical issues of government policy.
In what was widely interpreted by the media as a sign of desperation, the ruling party called its top leadership together in a show of unity. They soundly castigated business leaders who complained that the uncertainty of leadership was leading to difficult trading conditions. Lobbying took place behind the scenes to try to assuage the uneasiness among investors.
The year was 1985.
I make this point to underscore something very important which I did not understand as a young firebrand journalist at the time but which I do understand now – business does not like uncertainty.
Business is basically about weighing risk against reward. It doesn't matter what the percentage might be of reward, hence the willingness of foreign companies to do business in Zimbabwe although that country insists on 51 percent of any venture being owned by Zimbabweans. What matters is that there be certainty in the amount of risk and reward. It does not matter whether that certainty comes from liberal or conservative or communist or Islamist or racist or dictatorial regimes.
Cases in point: US company Gulf Oil was able to successfully do business with the Soviet-aligned MPLA government in Angola while the US and Angola were on opposite sides of the Namibian conflict. MTN has for a long period very successfully conducted business in Nigeria and Iran while staying out of conflicts in those areas.
On the other hand, very few would consider investment in Somalia until they have a stable government.
Last month, Nedbank Group [JSE:NED] released its annual report. In his commentary to the report, group chair Dr Reuel Khoza commented extensively on uncertainty in the world markets, and then made the following observation under the heading "Upholding our constitution":
"SA is widely recognised for its liberal and enlightened constitution, yet we observe the emergence of a strange breed of leaders who are determined to undermine the rule of law and override the constitution. Our political leadership’s moral quotient is degenerating and we are fast losing the checks and balances that are necessary to prevent a recurrence of the past. This is not the accountable democracy for which generations suffered and fought.
"The integrity, health, socioeconomic soundness and prosperity of SA is the collective responsibility of all citizens, corporate or individual. We have a duty to build and develop this nation and to call to book the putative leaders who, due to sheer incapacity to deal with the complexity of 21st century governance and leadership, cannot lead.
"We have a duty to insist on strict adherence to the institutional forms that underpin our young democracy."
Since then, the ANC's Gwede Mantashe, Nathi Mthetwa, and Jimmy Manyi have lashed out at Dr Khoza with the type of vigour once reserved for Helen Zille. Mthetwa among other things says Khoza "…postures about political leadership's moral quotient yet says nothing about ethics and morals of business that perpetuate the historical injustice of colonialism and apartheid."
Those of us who learnt debating in school – (my mother taught Amichand Rajbansi) – are aware of the Straw Man tactic. When someone makes a point, raise a completely unrelated point and attack him on that score without reacting to the original point.
I for my part have no illusions about the role of many – including business – in perpetuating historical injustices. But can we please deal with the issues raised by Dr Khoza without attacking him personally?
Let's talk about the "sheer incapacity to deal with the complexity of 21st century governance". Two months back, the National Treasury stripped all Limpopo government departments of their executive powers, following a cabinet decision over governance and financial concerns. My understanding is that as a cabinet member, Mthetwa would have been party to that decision.
Let's talk about the "degenerating moral quotient". The ANC's partner in the alliance Cosatu, through its General Secretary Zwelenzima Vavi says: "There is not a single day without newspapers exposing corruption of a government worker who extorts money out of the poor, driving schools and traffic police who collude to extort money out of our working class children who are desperate to acquire a driving license - which has become a principal requirement for getting a job in this country."
So why the invective against Khoza?
My take is that the ANC has become used to the idea of a white-led business community who have been afraid to say boo to a goose lest they be accused of racism. So every time they received a snot klap from the ANC, they simply took it, like any victim of domestic abuse dependent on economic support.
Suddenly, we have a respected black business leader with impressive academic and business credentials, author of books promoting Africanism and Ubuntu, raising a warning flag of uncertainty.
Expect many more to follow his example.
Oh, and back to 1985: PW Botha rejected the advice of business and gave them the finger in his Rubicon speech, thereby sparking the biggest economic downturn in South Africa's history.
It's a lesson the ANC would do well to learn.