Programme Director,
President of the Black Business Council, Mr Elias Monage,
CEO of the Black Business Council, Mr Kganki Matabane,
National Officer bearers of the BBC,
Ministers and Officials
Representatives of the business community,
Distinguished Guests,
Good evening.
Allow me to extend my thanks to the leadership of the Black Business Council for the invitation.
The Black Business Council remains one of the foremost voices for the transformation of the South African economy.
The BBC understands that this transformation is necessary not only for its members, but for our entire society as we work to undo the inequalities and injustices of our past.
Seventy years ago, our forebears declared that the people shall share in the country’s wealth. That must remain among our foremost ambitions as a nation.
Fundamental economic transformation is vital to the growth of our economy and to the progress of our nation.
This transformation is necessary if we are to unlock the capabilities of all our people and realise the full potential of our economy.
We must dispense with the false choice that we urged to make between growth and transformation.
Transformation is vital if growth is to be meaningful, inclusive and sustainable.
Growth is essential if we are to effectively transform our economy.
Our task is to ensure that we pursue both growth and transformation, in concert, with more vigour and to greater effect.
This must be a common effort that brings all South Africans together.
We must give practical effect to what is contained in the Preamble to our Constitution, which says:
“We, the people of South Africa, recognise the injustices of our past, honour those who suffered for justice and freedom in our land, respect those who have worked to build and develop our country, and believe that South Africa belongs to all who live in it – united by our diversity.”
If we are to remain true to this solemn declaration, then we must reaffirm our common commitment to empowerment.
We must reaffirm our commitment to redress and restitution.
We must recognise that economic empowerment is an undertaking that requires deliberate action across nearly every area of our national life.
It is not limited to a few laws, policies and regulations.
The economic empowerment of black South Africans starts at birth.
It begins with the circumstances into which a person is born.
From nutrition to health care, from early childhood development to the quality of basic education, we must ensure that the black child receives the same developmental foundation that all children need to succeed in life.
The expansion of fee-free schooling, the funding of students from poor and working class families, school feeding schemes, scholar transport and child care grants all make a vital contribution to black economic empowerment.
By the same measure, interventions to reduce youth unemployment – by providing work experience, skills and job opportunities – are directed towards reducing the great divides in economic opportunity.
Just this week, over 200,000 unemployed young people started work at thousands of schools across the country – gaining valuable skills and capabilities while helping to improve the educational outcomes of the learners that follow in their footsteps.
From the partnerships that we have forged with business to provide workplace experience opportunities to young people to the input vouchers provided to small scale farmers, we are steadily transforming the structure our economy.
Across every sector of society, we will continue our work towards a South Africa of equality and equal opportunity for all.
Since the advent of democracy, we have built a comprehensive and robust legislative framework to advance the transformation of the economy.
The Broad-Based Black Economic Empowerment Act and the Employment Equity Act are essential parts of this legislative framework.
Since these Acts came into being, there have been notable increases in black business ownership as well as in the number of women-owned businesses.
We have seen progress with respect to management control, skills development, and enterprise and supplier development.
On household income, we have seen progress in narrowing the gap between race groups.
According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46 percent, while coloured households experienced income growth of 29 percent and Indian households 19 percent.
While this can be considered progress, the average income of white households is still nearly five times as high as black African households.
On some employment measures, we are also seeing the gap narrowing.
In the 20 years between 2003 and 2023, for example, the proportion of senior management positions occupied by black Africans increased from 14 percent to 27 percent.
Again, important progress. But not at the scale or at the pace that we need.
The data that we have shows that our broad-based black economic empowerment measures have made an impact, but we need to do more and we need to do better.
We have to build on the successes we have registered since the laws were introduced. We need to entrench their principles and to improve their outcomes and impact.
Where we need to make changes, where we need to make improvements, we should not be afraid to do so.
We need to recognise that there was some concern about the effect that the establishment of the Government of National Unity would have on government’s approach to economic empowerment and transformation.
The parties to the GNU reflect a wide range of political, social and economic perspectives.
Even now, these parties continue to articulate differing positions in public.
These debates are important and should be aired.
Yet the agreed priorities of the Government of National Unity provide a platform for meaningful transformation.
The Medium Term Development Plan of government has identified three strategic priorities: driving inclusive growth and job creation, reducing poverty and the high cost of living, and building a capable, ethical and developmental state.
The reforms that are underway to improve the capacity and efficiency of our network industries are transformational.
By driving investment, improving efficiency and increasing competition in areas like electricity, logistics, water and telecommunication, we will substantially reduce the cost of doing business.
We will reduce the barriers to entry for emerging businesses, including businesses in townships and rural areas.
Similarly, our focus on expanding infrastructure investment will drive productive activity and expand our economic capabilities.
Public infrastructure spending over the next three years will amount to R1 trillion.
It is vital that we use this investment to provide opportunities for black businesses not only in construction, but in all the sectors that will provide the materials, goods and services that such an infrastructure drive requires.
As we develop our industrial capacity – expanding traditional sectors like mining and agriculture, while developing new industries like renewable energy, electric vehicles and green hydrogen – we will be creating opportunities for the emergence of new black and women-owned businesses.
As we support emerging farmers, improve our logistics network and rural supply chains, and open new export markets, we need to be driving the transformation of agriculture.
We cannot separate our drive for inclusive growth from our drive for economic empowerment.
The creation of a Transformation Fund to fund black-owned and small business enterprises is not only about correcting past wrongs, it is also about establishing a new wave of emerging innovative businesses that can create work and opportunity.
The use of the Public Procurement Act to ensure businesses owned by women, youth and persons with disabilities receive equitable opportunities in government contracts is about unleashing the potential of the South African people.
The Black Industrialists programme is promoting the growth and competitiveness of black owned and controlled enterprises in the manufacturing sectors of the economy.
This programme is drawing into the productive economy the skills, initiative, capabilities and energy of people who had been neglected in the past.
Such initiatives make our economy stronger.
We need to challenge the notion that black economic empowerment is a cost to the economy. We need to demonstrate that it is an investment in the economy.
Now is not the time to abandon the measures we have put in place to drive transformation.
Now is the time to move forward with greater purpose and ambition.
We must use the lessons we have learnt over the last 30 years to make our empowerment policies and programmes more meaningful and more impactful.
They must be ever more effective drivers of inclusive growth and employment.
As we undertake this work, we can be certain that the Black Business Council will remain an unwavering champion of empowerment, transformation and progress.
We can be certain that the Black Business Council will continue to advance the interests not only of its members, not only of black business, but of all the people of South Africa.
By working together, by focusing on growth that is inclusive and transformational, we can make real progress towards ensuring that the people do indeed share in the country’s wealth
I thank you.
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