PRESIDENT RAMAPHOSA SUPPORTS BBBEE @KASIBCNEWS

Honourable Members,

South Africa remains a highly unequal society. 

Despite progress in several areas, inequality still exists in South Africa.

Participation in the economy and the distribution of wealth still reflects the racial and gender divides of apartheid. 

In responding to this fundamental challenge, we are guided by the Constitution, which places a responsibility on the state to take measures to redress the effects of past racial discrimination.

Successive democratic administrations have thereforeintroduced various transformational measures such asbroad-based black economic empowerment, employment equity and other transformational policies. 

To assess progress in this regard, the Broad-Based Black Economic Empowerment Commission undertakes annual assessments.

Based on these, it has established that black ownership in the economy averages 30%, and black women ownership averages 15%. 

The Commission found that since 2017, the cumulative value of assets acquired by black people through major transactions above R25million is around R800billion.

As outlined in the State of the Nation Address last month, our focus is on empowering those people who were deliberately excluded from playing a key role in the economy. These include black people, women and persons with disabilities.

We are therefore setting up a transformation fund worth R100billion over the next 5 years to fund black-owned and small business enterprises. 

We are continuing the Black Industrialists programme, which is helping to expand the country’s industrial base and develop a new generation of black entrepreneurs.

We are working with industry partners, through master plans and other initiatives, to increase black ownership in keysectors of the economy. 

Government is also supporting the growth and development of small, medium and micro enteprises, especially in townships and rural areas. These businesses are vital drivers of economic growth, job creation and poverty reduction.

The work underway to reduce inequality is not limited to these direct interventions in the economy. Around 60% of non-interest spending goes to programmes that form part of the broader social wage.

Significant progress is being made in areas like education, which is one of the most critical instruments to reduce inequality and foster prosperity for all.

We have significantly expanded access to education for children and young people. Today, more than 10.5million learners go to public schools where they do not have to pay fees. Last year, over 900,000 students from poor and working class backgrounds received funding to study at universities and colleges.

We are making Grade R compulsory to ensure that all children have a solid educational foundation that will contribute to their success later in life.

Through the introduction of the National Health Insurance, we are working to reduce the huge disparities in access to health care. This will improve the quality of life of millions of poor South Africans, reduce the cost of their health care and improve their productivity.

Through the provision of subsidised housing, free basic services for the indigent land reform, we are helping to reduce inequality and better enable people to participate in economic activity.

All of these interventions taken together contribute to reducing inequlity and improve levels of participation by black people in the economy.

To achieve faster and more meaningful economic empowerment, we need to grow the economy at a far faster rate and create the jobs that our people need.

That is the central focus of this administration.

#RamaphosaQandA