The Minister of Trade, Industry and Competition, Ebrahim Patel says transformation plays an important role in economic recovery. Patel was speaking at the Black Business Council Summit at the Gallagher Convention Centre in Midrand, Johannesburg, on Friday.
Unemployment, poverty and inequality took the centre stage at the summit. The government says without economic transformation, the economic recovery path will be a challenging one.
Currently, the biggest concern in South Africa is unemployment, while growing levels of poverty and inequality plague the country.
Minister Patel claims that the goal of economic growth is to broaden economic ownership and inclusion.
“The goal of public policy is to build economic inclusion through transformation programs in three broad areas. first strengthening inclusivity and transformation in the quality of growth.”
Minister Patel says a report released by the Competition Commission points out how a concentrated market can keep small businesses out of the market. And this in turn impacts inequality and weak economic performance.
VIDEO: Minister Patel addresses day 2 of Black Business Council Summit:
Patel adds, “It shows that a small number of firms dominate key sectors of the economy. The challenge of economic concentration, of course, is not limited to South Africa and is indeed global. But it is particularly severe in South Africa.”
On Thursday, Minister of Higher Education, Science and Technology, Dr Blade Nzimande, said the government believes that the economy cannot grow unless science, technology, and innovation are at the centre.
He said there is a need for collaboration between business and government.
VIDEO: Black Business Council Summit: