/ 29 August 1997

Nafcoc seeks greater role

Sechaba ka’Nkosi

The National African Federated Chamber of=20 Commerce and Industry (Nafcoc) has called=20 for a national stakeholders conference=20 between the government, established=20 business and small enterprises before the=20 year-end. Nafcoc wants the summit to=20 formulate a programme that will ensure full=20 participation of emerging business in=20 economic reform.=20

The call forms the core of the main=20 resolutions adopted by Nafcoc’s 33rd annual=20 convention in the Eastern Cape this week.=20 It also stems from the organisation’s=20 apparent displeasure at being left out of=20 major economic discussions and from calls=20 by black leaders for Nafcoc to articulate a=20 clear programme for its members during the=20 transitional period.

At the convention, Nafcoc leaders argued=20 that the proposed conference must result in=20 clear undertakings from the government and=20 the established sector that special=20 preference be given to businesses from=20 disadvantaged communities on tenders,=20 privatising assets and unbundling companies=20 as a means to integrate them into the=20 mainstream. For its part, Nafcoc would=20 organise and educate its members on how to=20 use these opportunities to empower=20 themselves and their communities

Nafcoc insists it has no doubts about the=20 government’s commitment to black economic=20 empowerment, but says strategies adopted in=20 recent times signal the opposite. The=20 organisation says this suggests that the=20 government does not see small businesses as=20 a vehicle for job creation.

For example, charges Nafcoc, the growth,=20 employment and redistribution (Gear)=20 strategy is not specific on how small and=20 medium enterprises could beencouraged. The=20 Basic Conditions of Employment Bill also=20 leaves small businesses with no protection=20 from the powerful trade union movement.=20 Nafcoc president Joe Hlongwane says if such=20 concerns can be addressed, emerging=20 businesses can play an important role in=20 creating employment and thus alleviate=20 poverty.=20

Says Hlongwane: “We can no longer afford to=20 sit and shout from the outside. We want the=20 government to give us a sense of focus and=20 priorities which can stimulate the=20 expansion of small and medium enterprises=20 to the extent that job targets will be=20 met.”

Nafcoc also reiterated its call for the=20 establishment of a national ministry=20 dedicated to the promotion and advancement=20 of small businesses, and the restructuring=20 of state financial institutions to meet=20 their financial needs. Through these, says=20 Nafcoc, marginalised regions can benefit=20 from economic growth.=20

“We cannot allow redistribution to benefit=20 only a few individuals and well-off cities.=20 It must be felt throughout the country. The=20 government can achieve more by working=20 closely with mass-based organisations like=20 Nafcoc because we know what the needs of=20 our communities are much better than anyone=20 else,” says Hlongwane.

The conference – held under the theme=20 “Business in Transition towards an=20 Integrated Economy” – also set itself a=20 goal: that the executive committee=20 identifies the best financial and corporate=20 structures to achieve meaningful black=20 ownership and control in empowerment=20 transactions before the next summit.