Black Business Council to advance economic transformation agenda

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The Black Business Council (BBC) has emphasised the importance of a strong specific voice of black business in South Africa to advance the agenda of transformation.

This follows the organisation’s round table discussion with the South African Minister of Trade and Industry, Dr Rob Davies in Johannesburg on 30 March 2016.

The BBC has been holding high-level roundtable meetings with strategic departments to lobby government on policy advocacy in order to accelerate the participation of black South Africans in the mainstream economy and to develop initiatives and programmes like the Black Industrialist Programme to enable economic growth and inclusivity.

“It is therefore important for a significant organisation like ours to engage with government in order to outline our plans and express our challenges going forward. We are hoping that initiatives like the Black Industrialists Programme will produce entrepreneurs that will think globally but act locally and drive our enterprises to be globally competitive,” said Ntsele.

Government is seeking to re-industrialise the South African economy through, amongst other interventions, the Black Industrialists Programme.

On addressing the Black Industrialists Programme in the context of the broader support that it is providing for black business in general, Minister Davies said that economic transformation depended on two inter-connected themes. These are the radical change of the productive base of the South African economy, and the challenge of changing the patterns of participation in the economy, drawing from the skills capacity and entrepreneurial spirit of the whole of the population of the country.

“This means that we have to move from being an economy that only produces and exports primary mineral commodities and an importer of finished goods. That is the least valuable place we can be in the global division of labour. The greatest part of value-chain is located in those parts of the value-chain where value is added,” says Davies.

“We have been trying to change the character of Black Economic Empowerment (BEE) so that it relates to developments in the economy and we have discovered that programmes that are sector-specific work better. It is important that we develop black industrialists as an integral part of the industries. To mitigate this we have established a one-stop-shop and I can report today that the Black Industrialists Funding Forum has met on 17 March 2016, and we have received fifty applications to date with the majority coming from agro-processing, Information Communication Technology, capital equipment and construction, automotive and oil and gas sectors,” adds Davies.

On addressing the issue of fronting, Davies mentioned that it was found that the majority of transactions which were passing off as BEE involved share deals in which groups of black people were given a stake in an established company.

“Very often we found that those people probably thought that they were on track to taking over leadership and management of that company but in practice they found that they were confined to some subordinate role in the company. This is a form of fraud but it was extremely difficult to prosecute. That is why we had confronting. We have reviewed this and have developed the Broad-Based Black Economic Empowerment Commission to counter this practice,” says Davies.

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Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 16 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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