Programme Director;
The President of the Black Business Council, Mr. Elias Monage;
CEO of the Black Business Council, Mr. Kganki Matabane;
The collective leadership of the Black Business Council;
Ministers here present;
Representatives of the business community;
Distinguished Guests;
It is a great honour to be here tonight as we honour and celebrate black excellence and, most importantly, to be part of the conversation about accelerating the participation of black South Africans in the mainstream economy.
Today is the last day of the month dedicated to commemorating 1976 and celebrating the youth of our country. So we honoured the invitation to join Alex FM at Alex High School this morning. I also visited Harambee Youth Employment Accelerator earlier today, a partnership between government and business to absorb greater numbers of our youth into the economy through employment and entrepreneurship.
What impressed me was how the youth remain positive and remain hopeful about the future. We want to assure the youth that we are going to continue to work hard together with them to build a sustainable future. We also want to urge many of you, as business people, to return to your schools and communities to invest resources for the growth and development of the future of the youth.
Ladies and Gentleman
The Black Business Council's decision to honour black business leaders in this manner is truly commendable, as we recognize that our nation is an intricate web of multiple interests.
By celebrating black excellence, we prove that it is possible to not just survive but thrive while facing significant obstacles.
These awards are also taking place as we mark 20 years of the Broad-Based Black Economic Empowerment (B-BBEE) policy framework.
Since its implementation over 20 years ago, there has been significant progress made in advancing economic transformation and empowering the historically disadvantaged.
Compatriots,
According to statistics, the number of black-owned companies in South Africa has increased dramatically, proving that through our joint efforts we ARE changing the look of this economy.
As of 2021, it was estimated that approximately 2.5 million black-owned businesses employed millions of individuals across the country.
Black-owned companies have made significant advances in a variety of industries, including manufacturing, services, and technology.
Black business is also claiming an increasing share of contribution to GDP growth, a trend we must accelerate.
Recent figures show that black-owned businesses account for a growing amount of the country's GDP, with estimates ranging from 28 percent to 35 percent.
Nevertheless, there is still more work to be done. In order to see positive results from this policy, its execution must be strengthened and streamlined. We must work together as social partners to ensure its success.
Compatriots,
We must also address the issue of B-BBEE compliance reporting by companies. According to the 2021 National Status and Trends on Broad-Based Black Economic Empowerment Transformation Report, the B-BBEE Commission's B-BBEE Portal submissions have decreased from 5,818 in 2019 to 1,475 in 2022 due to low compliance levels.
As Government, we are continuing to review and refine the BBBEE policy with a focus of making it more inclusive, transparent, and impactful.
The goal is to create more social and economic equity and make sure that all people have equal opportunities to take part in the economy of the country.
We are affirm that this is the correct policy to pursue.
Ladies and Gentlemen,
Besides the B-BBEE policy framework, we have implemented various initiatives to support black businesses.
A key lever for us is the use of policy, legislation, and regulation to promote black economic empowerment. This includes the implementation of preferential procurement, skills development, enterprise and supplier development, and employment equity, among others.
We have also established institutions and programs to support black entrepreneurs and small businesses. The Small Enterprise Development Agency (SEDA) provides business development services, mentorship, and access to finance.
Additionally, the National Empowerment Fund (NEF) offers funding and support to black-owned businesses, helping them overcome financial barriers and achieve sustainable growth.
Furthermore, the government has launched programs to enhance skills and entrepreneurship development among black youth.
These initiatives include the National Youth Development Agency (NYDA) and the Entrepreneurship Development Program, which provide training, mentorship, and funding opportunities for young black entrepreneurs.
Moreover, we believe that women's empowerment is central to the global development agenda and is a stepping stone to gender equality.
In this regard, we are deeply concerned that only a small percentage of board members in JSE-listed companies are female, while a significant proportion of JSE-listed companies have no female board representation at all!
It is equally concerning that women are experiencing higher levels of unemployment, while those who are employed generally earn 19 to 37 percent less than their male counterparts.
Compatriots,
We must all confront this reality together as a nation. It is our responsibility as government and private sector to create a conducive environment for equal participation in the economy for both women and young people.
As government, we have created a number of initiatives to promote women's economic participation. Government initiatives such as the Women Empowerment Fund and the National Empowerment Fund, to name two, are designed to increase funding for black women to enter the world of business.
For instance, in 2021, we introduced the Women Empowerment and Gender Equality (WEGE) Strategy, which aims to ensure that women participate actively in the Energy Sector.
We also have the SheTradeZA Hub, which assists women entrepreneurs in increasing their international competitiveness and connecting to local, regional, and international markets.
We encourage women with an aptitude for business to take advantage of the many entrepreneurial opportunities that are available, whether in agriculture, energy, or any other sector.
All of these initiatives, along with others, demonstrate our commitment to empowerment and the creation of an inclusive economy. However, we cannot accomplish this on our own.
We require institutions such as the BBC to collaborate with us and place an emphasis on promoting inclusive economic development through public-private partnerships and targeted investment in sectors including agriculture, industrial, and infrastructure.
Regarding the Black Industrialist Programme and the framework of our Industrial Policy, our collective efforts must concentrate on two primary objectives:
• One, facilitating Black Industrialists' entry into strategic and targeted industrial value chains so that they can contribute to growth, investment, exports, and employment, and
• Two, providing Black Industrialists with a variety of pathways and instruments to increase their participation in the national economy.
The Departments of Trade, Industry, and Competition and Small Business Development will continue to lead the way in opening up business opportunities to enable black firms to thrive and participate fully in the economy through the Black Industrialist Programme.
We should celebrate the program's success, which has resulted in the development of around a thousand Black Industrialists. Many of them now run successful businesses that employ a growing number of our citizens.
Ladies and Gentlemen,
We are well aware that the current state of the global economy has made it more difficult for us to fulfil our commitment to the development of an inclusive and equitable economy.
The COVID-19 pandemic in 2020 has disrupted production, trade, and investment globally, including the African continent. The War in Ukraine has increased oil and food prices, heightening global tensions, and embroiled us in geopolitical contestations between major powers, with obvious dangers for our economy.
We are also facing challenges, from persistent power outages, to weak growth, the scourge of corruption, and unemployment.
To combat these, our government has rolled out a number of interventions. Among these are the Economic Reconstruction and Recovery Plan, Operation Vulindlela – which is specifically designed to remove obstacles in your path and streamline our own processes – and the Just Energy Transition Plan, our energy security and green economy transition strategy.
We are responding to the immediate crisis of load shedding through the National Energy Crisis Committee (NECOM) and a range of other measures and reforms aimed at stabilizing the electricity supply and building for the future.
Moreover, the electricity minister has been appointed and is working towards resolving the issue of load shedding by the end of the year.
The minister has been engaging with various stakeholders, including businesses, to find a long-lasting solution to the energy crisis.
The Energy Action Plan is underway and aims to reduce stages of load shedding by increasing the number of power plants, including renewable energy projects.
We are fully committed to the transition from fossil fuels to renewable energy. But that transition will occur at the appropriate pace for our needs, it will balance economic development and preservation of jobs, social equity, and environmental sustainability. It will also take into account our current energy shortages.
Because we cannot transition while sitting in the dark!
Ladies and Gentlemen,
To address the unemployment challenge, we are implementing the Economic Reconstruction and Recovery Plan (ERRP) to kick-start our economy after the devastation of Covid-19.
The Jobs Fund has invested R9 billion in job creation initiatives and R13 billion in matched funding to support 294 000 jobs, internships, and training for nearly 293 000 job seekers. However, there is a recognition that more needs to be done.
To expedite the reform agenda and address bureaucratic red tape, the government has established Operation Vulindlela.
This initiative has made significant progress in a short time by promoting collaboration and coordination across government.
Some of its achievements include paving the way for private investment in electricity generation, clearing the backlog of water use licenses, ending delays in the auction of high-demand spectrum, facilitating private sector participation in container terminals, reviewing the work visa system, and adopting a new National Rail Policy. These efforts aim to attract investment, improve efficiency, and modernise various sectors of the economy.
Ladies and Gentlemen,
We must also ensure that we take advantage of the African Continental Free Trade, which holds the potential to inject $450 billion worth of investments into the African economy and help lift between 50 and 100 million people out of poverty by 2035.
We will work with you to ensure that you participate meaningfully in the economy of our continent.
To achieve this goal, we are making it easier for third parties to utilise the freight rail network. We hope that this will encourage more investment, lower transportation costs, and make the sector more competitive.
Some of these measures include allowing private companies to operate container terminals and invest in port infrastructure as part of a policy shift toward greater efficiency.
In the end, we want to make sure that state-owned firms like Transnet can operate profitably and fulfil their commitments without ongoing and burdensome government assistance.
These are some of the initiatives that we believe will transform our economy.
Ladies and Gentlemen,
We view the Black Business Council as a vital partner that can guide us as we resolve our deficiencies and help us streamline existing policies and programs so that they align with our empowerment goals.
We must collaborate to resolve any challenges that confront us. In the near future, the country's economic trajectory will be largely determined by its capacity to navigate obstacles, implement reforms, and draw strength from all the social partners.
Together, we must establish a meaningful social compact to reconstruct our nation and our economy, and to ensure that no individual and no community is left behind.
I thank you.
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