The Democratic Alliance sees broad-based economic empowerment as imperative and desirable. After decades of apartheid unemployment is at 42% and three out of five South Africans live below the poverty line. About 40% of the population have completed only primary school, while 18% have no schooling at all. The poorest 41% earn only 10% of national income.
A decade into our democracy these figures brutally expose the myth of the slogan “a better life for all”. The income gap between rich and poor blacks is greater than ever, while a well-connected few are enriched in the name of “black empowerment”.
The DA’s primary goal has been to eliminate poverty and provide adequate and rising living standards for all. Our recently released broad-based economic empowerment policy, “Opportunity for All!” takes this further, stating that efforts to transform our economy and empower the millions of South Africans excluded by apartheid must, at their very heart, tackle poverty, unemployment and inadequate education. They must empower the many, and not the few.
Deracialising ownership of large, listed companies is desirable, but no substitute for broad-based empowerment. The DA vision is to give people access to skills and opportunities to realise their potential and take control of, and responsibility for, their lives.
We believe in a bottom-up non-racial strategy that targets the worst-off first, focusing on job creation and entrepreneurship as key measurables. With 42% of our workforce —Â eight million people — unemployed, the surest way to empower the marginalised and poor is with a job.
Effective broad-based empowerment does not have to be racially-based, because programmes to address poverty, inequality, lack of skills and illiteracy will inevitably overwhelmingly benefit historically disadvantaged people.
Our policy would address the skills crisis by scrapping the detrimental race quota system on professions and jobs requiring scarce skills, immediately attracting new skills, which would create new job and training opportunities for the unskilled.
Economic empowerment will have its greatest effect if we do not prejudice capacity, efficiency and economic growth or effective state administration and delivery. Empowerment criteria like race, gender and disability should be “plus” factors, not the sole considerations in awarding contracts or making appointments. To do otherwise would be to compromise economic growth or service delivery, or the minimising of poverty or inequality.
Affirmative action legislation should incorporate sunset clauses and be non-racial wherever possible. Affirmative action is complex and sensitive, with the potential to facilitate healing but also to sow new bitterness in our diverse society.
 The DA believes that there is nothing “broad-based” about the African National Congress’s top-down approach, which has grossly advantaged an elite. While there is nothing wrong with these individuals being wealthy and successful, to define them as “disadvantaged” and allow them to benefit from so-called “empowerment” deals is immoral.
And as long as the ANC focuses on transferring existing equity from one small group to another, instead of transforming through growth and job creation, its empowerment strategy will remain a myth for those who need it most.
Mark Lowe, MP, is the DA’s trade and industry spokesperson