I share the accepted points of departure in the debate on black economic empowerment. Our society cannot survive if economic and political power belongs to different groups.
Moreover, a substantial black upper and middle class must be formed as quickly as possible so that all segments of our society, especially the largest, have an equal stake in the maintenance and growth of our market-based economic system. In the interest of our whole society, some economic power must be transferred from white to black hands.
But the mere wealth transfer does not produce economic growth nor address poverty. In fact, it may often involve an economic cost in the form of discounted sales of state assets or equity in private companies.Â
We must accept that the meritorious goal of black empowerment may have a negative impact on economic growth and shrink our economic bases by reducing the margins of viability of business. Strategies must be developed to offset this.
I come from a background of poverty and have lived among the poorest of the poor all my life. I have always endorsed market-based economic strategies, because only accelerated economic growth can bring into the economic mainstream the ever-growing number of our marginalised people.
Black empowerment strategies must ensure that wealth trickles down to the poorest, and this requires greater employment generation and economic growth. It cannot be only about enriching a fortunate few, but should create a class of black industry from top management to new segments of employed black people.Â
It is frightening that since 1994 more than half a million people have become unemployed, and it highlights the need to target black empowerment towards employment generation. Without wealth and social benefits trickling down in an equally distributed manner, imbalances will not be redressed and empowerment will fail.
Special emphasis must be placed on empowerment techniques that promote economic growth by adding value to businesses. We must create incentives for black partners to deliver business value to ventures in terms of marketing or production, and have mechanisms to audit such value delivery. Black empowerment must offer the opportunity of higher economic growth through efficiency, competitiveness and outreach into new market segments, both domestically and continentally.Â
I have never espoused the culture of entitlement. Motivations ought to be created to provide added value, and for companies to regard black partners not as passive components, thus promoting their professional and business growth.Â
Black empowerment should be part of a comprehensive growth strategy that identifies the meaning of the “made in South Africa” label in 20 years’ time, for globalisation requires us to invest today to have products to bring into the global market tomorrow. Â
For instance, if we decide to compete in biotechnology, we should plan ahead to promote black empowerment in the field, from educational opportunities to access to capital for business development. A 20-year perspective may be needed for a plan that ensures the economic success of South Africa and black empowerment.
To ensure the goose continues to lay golden eggs for our children and their children’s children, economic growth and efficiency must be pursued with as much emphasis as empowerment.
This may mean forcing greater internal and international competitiveness by dismantling cartels and introducing maximum flexibility in the labour market. To make gains we may have to distribute pains equally.
The struggle for economic liberation will be as arduous as the one we fought for political liberation, and will require the same wisdom and pragmatism.
Mangosuthu Buthelezi is IFP president and Minister of Home Affairs