It has been a good year for business. Confidence is high, not least because of steady interest rates and low inflation. Most listed companies delivered excellent results for investors, and predictions of the end of the boom in sectors like retail and property proved unfounded. The surging gold price made even the recent desperation of mining companies over the strong rand seem rather remote.
So this December a lot of chief executives are enjoying a glowing image with their investors, employees and peers. Even so, it's possible to identify a few movers and shakers who had a particularly strong impact (positive or negative) on the business scene in 2005. This list isn't comprehensive, but it does capture the flavour of an invigorating year.
Of course, a finance minister cannot help but exert great influence on the business climate, and Trevor Manuel (backed, it must be remembered, by President Thabo Mbeki) continues to draw admiration for his handling of the economy. But Manuel's excellence can be seen, in the context of 2005, as business as usual. Much the same can be said of Reserve Bank governor Tito Mboweni.
SA Revenue Service (Sars) commissioner Pravin Gordhan falls into a slightly different category. This was the year that Sars under Gordhan really consolidated its reputation as an efficient, world-class operation, bringing home to business and individuals that the old days of nod-'n-wink avoidance and evasion are over (see page 21).
Below the macro level, remarkable contributions are inevitably going to be made when the actions of individuals affect entire industries or major companies, or who orchestrate big mergers or acquisitions. By those criteria, the FM's writers agree that pension funds adjudicator Vuyani Ngalwana deserves the title of Business Newsmaker of the Year (see page 16).
Hardly known beyond (or even in) the life offices 12 months ago, Ngalwana shocked the multibillion-rand life assurance industry, galvanised investors and caught the imagination of consumers with his rulings on retirement annuity payouts. It is not often that one man changes the way a sector operates, but that is what Ngalwana achieved.
Two winners of major annual FM awards in 2005 were Ivan Clark (CEO of Grindrod, well ahead of the pack in the Top Companies survey) and John Gomersall (CEO of PPC, Best Company To Work For). Under Clark and Gomersall, men at the height of their executive powers in businesses they know intimately, these companies performed far beyond the favourable ambient conditions in their sectors. Their exceptional returns for investors were a source of awe and inspiration, a model for others to follow.
Such is the sheer presence and success of cellphone giants Vodacom and MTN that their respective CEOs, Alan Knott-Craig and Phuthuma Nhleko, continued to attract attention, not least for their intense struggle to increase market share in Africa.
The deal of the year was undoubtedly the acquisition of leading retail bank Absa by UK giant Barclays. This was obviously the work of many executives at various levels, but influential individuals had to take the big risks and deal with the consequences; they include Absa chairman Danie Cronje, new CEO Steve Booysen and Barclays International CEO David Roberts. From the regulatory perspective, Manuel and registrar of banks Errol Kruger played key roles.
Another important deal saw the absorption of Capital Alliance into Liberty Life, with the expected administrative synergies apparently reflected in good chemistry between Liberty CEO Myles Ruck and new deputy Ian Kirk. It was an active year for the Kirks: Ian's brother Grattan, CEO of Connection Group, negotiated a win-win acquisition of his company by David Sussman's JD Group.
Harmony's hostile attempt to take over Gold Fields finally ended in defeat for predator CEO Bernard Swanepoel, with victorious CEO Ian Cockerill having noted the need for keeping a major shareholder like Norilsk onside with your strategy.
HCI's Marcel Golding stalked Johnnic Holdings ruthlessly for much of the year. His calm aggression and acute understanding of shareholder structures culminated in defeat for the old Johnnic board and the resignation of CEO Christine Ramon.
Transnet CEO Maria Ramos cannot be ignored after being voted the Business Times Business Person of the Year by the leaders of SA's top companies. The accolade seemed to be a little premature, something of a triumph of hope over experience, because the regeneration of Transnet (particularly Spoornet, whose safety record remained dismal) has seen many a false dawn. What probably impressed her peers was Ramos's determination to act fast in building the right management team. But Transnet subsidiary SAA had an unhappy year, one that must have severely chastened CEO Khaya Ngqula (see page 22).
On the transformation front, new Sasol CEO Pat Davies moved fast to address government concerns about progress in appointing senior black executives at the petrochemical giant. Sizwe Nxasana resigned as CEO at Telkom (not without controversy, given the decision to accelerate R3,9m worth of share options for him) and was later appointed CEO at FNB - the first black head of a major SA bank.
Transformation is, of course, an area where a government figure is able to make a big impact. Trade & industry minister Mandisi Mpahlwa issued the long-awaited economic empowerment codes that will govern the business landscape (see page 20).
Brian van Rooyen was a controversial case. As head of SA Rugby, he drew allegations of bad judgment and poor governance bordering on corruption, and his company Labat was suspended for a time from the JSE. Van Rooyen took enormous public heat, and it seemed that only good performances by the Springboks enabled him to survive the pressure.
Also in the world of governance, one who did not survive was Stuttafords CEO Charles Fox, who resigned after the FM exposed him as an unrehabilitated insolvent who had nevertheless continued to run the company for four years.
An unusual case was that of Jack van der Merwe. As a Gauteng civil servant he is hardly in the league of Manuel and Mboweni, but his passion, political shrewdness and technical knowledge played a major role in driving through acceptance of the Gautrain, despite the ballooning of its estimated cost from R7bn to R20bn.
Before and beyond the grave, the controversial magnate Brett Kebble, who was shot dead in Johannesburg in September, exerted considerable but still mysterious influence in various businesses and political circles (see page 20).
Kebble's extraordinary career makes him one of our four runners-up to Ngalwana as business mover-and-shaker of the year, along with Gordhan, Ngqula and Mpahlwa.
