ANC President Cyril Ramaphosa speaks at uj Soweto Campus in Johannesburg, 8 November 2021, to thank all South Africans who took part at the Local municipality government elections. Picture:Nigel Sibanda
President Cyril Ramaphosa told his Cabinet on Thursday that there were measures in place to ensure that the benefits of transformation policies would be felt by all South Africans.
Ramaphosa, who was answering questions from MPs, reiterated that Broad-based Black Economic Empowerment, affirmative action and other transformation policies were introduced to address the imbalances created by years of apartheid misrule in the country.
He added that these policies were not only about justice and historical redress.
“They are also necessary for economic growth and job creation by opening up the economy to black professionals and entrepreneurs, who over the apartheid years were prevented to build the capital base owned by black industrialists, workers and communities.”
“Unless we open up the economy to all, we will never realise our economic potential. For this reason, implementation of transformation and empowerment policies will continue to unfold to create an inclusive economy,” said Ramaphosa.
He said although the policy framework on Broad-based Black Economic Empowerment has evolved, its strategic intent has been guided by the Broad-Based Black Economic Empowerment Act of 2003.
The legislation in question aims to ensure that black people, women, workers, youth, people with disabilities and people living in rural areas are empowered through a series of integrated socio-economic measures.
“These measures include skills development, preferential procurement, investment in black-owned and -managed firms, and increasing the number of black people who manage, own and control enterprises and productive assets in the economy.”
“Such measures have been deployed in the context of an economy with a high degree of market concentration which limits the opportunities for new entrants.”
Ramaphosa has committed to strengthening inclusivity by broadening ownership and promoting more inclusive corporate governance.
“This includes promoting a greater spread of ownership in the economy, especially among black, women and young industrialists, and supporting worker share ownership,” he said.
He also said the government is addressing structural challenges to growth through active competition policies, particularly where concentration levels in the market limit new entrants and small and medium businesses.
Ramaphosa further said the government was promoting spatial transformation, enabling more balanced growth between rural and urban areas and between provinces.
“Many of these programmes have broader economic benefits. We are therefore pursuing empowerment through master plans in several industries, agreements with business and labour to reduce imports, worker ownership schemes and promoting greater competition through the Competition Act.”
“Broad-based black economic empowerment is necessary if we are to create an inclusive economy that is able to grow, innovate and realise its full potential,” he concluded.
Compiled by Siphumelele Khumalo
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