State capture has destabilised our democracy, says Ramaphosa

President Cyril Ramaphosa has lamented the negative effects of state capture on the economy of the country.

Delivering the keynote address at the annual Black Business Council Summit Dinner on Thursday night, Ramaphosa said the effects of state capture have been felt across society.

“State capture has deeply damaged our economy, weakened our public institutions and destabilised our democracy. But it has also hurt the cause of black economic empowerment and the advancement of black professionals,” said Ramaphosa.

Ramaphosa emphasised that it was not black economic empowerment that enabled corruption and state capture.

“It was the corrupt, in both the private and public sectors, who enabled state capture.

“We do not accept the argument that black economic empowerment has had a destructive effect on the economy. Rather, slow progress in the pace of economic transformation is what is holding back our nation’s development. Black economic empowerment has not enabled corruption.”

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Ramaphosa further called on business to join the government in building an economy that serves South Africa’s people.

“We have registered great progress. As we work to rebuild our economy in the midst of the most severe global pandemic in more than a century, we have a shared responsibility to address unemployment, eliminate poverty, reduce inequality, accelerate empowerment and deepen transformation. Over the last decade, we have seen the detrimental effect that slow economic growth has had on job creation, reduction of poverty and transformation. We also saw how state capture weakened state capacity.”

Ramaphosa said the government would implement targeted interventions to support black businesses in areas of manufacturing such as furniture, iron and steel, petroleum, chemicals, and agro-processing.

“The Black Industrialists Programme has invested over R30 billion in black-owned and managed firms. Over R500 million has been invested in SMMEs through the Small Enterprise Manufacturing Support Programme to promote the growth of successful entrepreneurs in the manufacturing industry.

“Let us work together to restore our nation, to rebuild our economy and to make sure that no community and no person is left behind,” said Ramaphosa.