BMF wants more inclusion of black business in SA economy

Panelist members at the Black Management Forum’s Annual Conference – which took place in Midrand – agreed that transformation and inclusion is still lagging in South Africa’s economic structures.

Government representatives emphasised that there must be a more deliberate attempt to drive the principles of the Broad-based Black Economic Empowerment policy.

Delegates at the conference heard that it is up to both the public and the private sector to drive the economic inclusion of black-owned companies into mainstream economic activities.

Minister of Trade, Industry and Competition Ebrahim Patel says economic concentration in the South African market limits new entrants and the economic participation of small and medium enterprises.

He says the goal of public policy – as it relates to triple-BEE is to drive transformation through active competition industrial policies.

“For the six-year period to date, R44bn in funding has been approved by the DTIC to more than 900 black industrialist and black-owned businesses with these firms employing more than 70 000 workers. 450 000 thousand workers now own shares in the companies where they work and an increasing number of agreements with companies have provided for workers to have a seat on the board of those companies.”

Deputy Finance Minister David Masondo says government is finalising the public procurement bill which will set aside funding to enable black people to access markets.

Masondo says government should protect some industries and products in the local economy from international competition.

“We need to support the export of what is produced by black entrepreneurs so that they can enter the international markets. We also need to support our black entrepreneurs to make sure that they do have access to technology to ensure that we can also produce at competitive level. Black industrialists face challenges of access to finance due to the limited pool to financiers and also the government debt. Our borrowing requirements as government are very high.”

Minister of Small Business Development Stella Ndabeni-Abrahams says both the public and private sector have a role to play in building confidence around the Enterprise Supplier Development program.

VIDEO | Importance of the Black Management Forum conference: Esethu Mancotywa