The government was aware of the harm the debate on nationalisation was doing to the country’s image but would not implement unconstitutional measures, said Minister of Public Enterprises Malusi Gigaba on Monday.
“We who run the country know the harm this reckless debate is doing to the good image and investments of the country,” Gigaba told an American Chamber of Commerce breakfast in Johannesburg.
He said the concerns raised by those calling for the nationalisation of the country’s assets were legitimate, but a solution was needed to unite the country instead of dividing it further.
“Ultimately it’s the ANC and not those who stand on public platforms in front of mikes who take the decision,” he said.
A task team established by the ANC to investigate nationalisation would probably deliver its report by the end of the year, he said.
The ANC would then “engage” with the report, and ultimately take a decision “in the best interest of the mining sector”, he said.
Less than 30% of land had been redistributed in 17 years of democracy, said Gigaba.
He said the government was now considering constitutional measures to speed up the pace of land reform.
These measures would not threaten the Constitution or the country’s image, he said.
They would also not involve “unguided expropriation without compensation”.
At the recent Cabinet lekgotla (meeting), a note, reading “Misappropriate land without comprehension” had been passed around, he joked.
His comments come amid a debate about nationalising the country’s mines and banks, sparked by ANC Youth League president Julius Malema.
In June, Malema repeated calls for South Africa’s wealth to be transferred to the people through the nationalisation of banks and mines and through land expropriation without compensation.
‘Race-mongering’
Gigaba said achieving equality and moving away from racism in South Africa required leadership.
“Our people fought not to replace white supremacy with black supremacy … but with a non-racial society.”
He said the party had been discussing those “seen to incite racial intolerance in public”.
This was “quite easy with politicians trying to be popular” who used “race-mongering without regard to government trying to create a non-racial society”.
“South Africa has come too far from the time of racial inequality for us to allow anyone to take us back to that moment, whether wittingly or unwittingly.”
He said it was necessary to act quickly to quell the racism.
“Populism is easy, but populism is also cheap.”
He said those who made racial statements to show militancy and those who resisted black economic empowerment measurements needed to be managed.
Debate, not dismissal
In July, the chief executive officer of AngloGold Ashanti said mine nationalisation needed to be debated and not dismissed.
In a letter published in Business Day, Mark Cutifani said the push for nationalisation — led by Malema — was motivated by “something else” than a call for greater social change.
“Surely nationalisation cannot mean what it might be taken literally to mean: the acquisition by the state, with or without compensation, of all the country’s mining assets,” he wrote.
“If compensation is paid, it would destroy South Africa’s fiscal stability.”
If companies were not compensated, it would destroy the finances of many average South Africans who had invested in companies, either directly or via pension funds.
Cutifani said that while the industry may have failed to meet some of the transformation targets and more needed to be done, much had been achieved to spread wealth and benefit previously disadvantaged black South Africans. – Sapa and Staff reporter