REUTERS AND OWN CORRESPONDENT, Johannesburg | Sunday
SOUTH African Reserve Bank governor Tito Mboweni has cautioned against over dependence on the government to increase the participation of the majority black population in the mainstream economy.
“If we think that the state is going to drive this process we are making a mistake,” Mboweni told delegates to a two-day conference on black economic empowerment.
The Black Economic Empowerment Commission (BEEC) in a 133-page document said the government was not doing enough to support black businesses and called for legislation for uniform guideline and targets for implementation of empowerment programmes in the public and private sectors.
The BEEC said the country’s economy was controlled by a white male minority that accounted for eight percent of South Africa’s estimated population of more than 40 million.
Black-controlled companies account for about 1.5% of the Johannesburg Stock Exchange market capitalisation. Mboweni, while accepting that there were some issues that the government had to tackle, urged the BEEC to mobilise savings and map out a clear strategy to forge ahead.
He cited the success story of Afrikaaner economic empowerment during the apartheid era, which through capital mobilisation resulted in the creation of the country’s largest financial and industrial institutions.
“While state resources are important, the huge impact depends on us … what can be done to mobilise whatever savings may be there,” said Mboweni.
He questioned whether there was real commitment towards black economic empowerment, asking how many of the delegates banked or held insurance policies with black-owned institutions.
“Is there the possibility that we can see the development of any notion of black economic empowerment in South Africa. If there is no notion of development of black economic solidarity, maybe we are barking up the wrong tree,” said Mboweni.
The BEEC believes that increased black participation in the mainstream economy is crucial for the attainment of sustainable economic growth necessary to create jobs for the millions of unemployed, the majority of whom are black.