Zuma’s radical plan to battle white favouritism in the workplace
President Jacob Zuma says that the state will play a role in the economy to drive radical socio-economic transformation.
Delivering his State of the Nation Address for 2017 in Parliament, Zuma said: “We mean fundamental change in the structure, systems, institutions and patterns of ownership, management and control of the economy in favour of all South Africans, especially the poor, the majority of whom are African and female, as defined by the governing party which makes policy for the democratic government.”
The president said that the majority of black South Africans are still economically disempowered after 22-years of democracy. “They are dissatisfied with the economic gains from liberation,” he said.
Zuma said that the gap between the annual average household incomes of African-headed households and their white counterparts “remains shockingly huge”.
White households earn at least five times more than black households, the president said, highlighting data published by Statistics SA.
President Zuma said that the situation with regards to the ownership of the economy also mirrors that of household incomes.
“Only 10% t of the top one hundred companies on the Johannesburg Stock Exchange are owned by black South Africans, directly-achieved principally, through the black empowerment codes, according to the National Empowerment Fund.
“The pace of transformation in the workplace, the implementation of affirmative action policies as required by the Employment Equity Act, also remains very slow,” the president said.
In terms of the 2015/16 information submitted to the Employment Equity Commission, the representation of whites at top management level amounted to 72% whilst African representation was at 10%.
The representation of Coloureds stood at 4.5% and Indians 8.7%.
“The report further provides that white South Africans, in particular males, are afforded higher levels of recruitment, promotion and training opportunities as compared, to the designated groups,” president Zuma said.
‘The skewed nature of ownership and leadership patterns needs to be corrected’
“Today we are starting a new chapter of radical socio-economic transformation. We are saying that we should move beyond words, to practical programmes.
“The state will play a role in the economy to drive that transformation. In this regard, Government will utilise to the maximum, the strategic levers that are available to the state,” president Zuma said.
This would include legislation, regulations, licensing, budget and procurement as well as Broad-based Black Economic Empowerment Charters to drive transformation.
President Zuma said that the state spends R500 billion rand a year buying goods and services. Added to this is the R900 billion rand infrastructure budget. “Those budgets must be used to achieve economic transformation,” he said.
Zuma said that new regulations making it compulsory for big contractors to subcontract 30% of business to black owned enterprises have been finalised and were gazetted in January.
“Through such regulations and programmes, government will be able to use the state buying power to empower small enterprises, rural and township enterprises, designated groups and to promote local industrial development,” he said.
Read: The ANC’s 12-point plan to ‘radically’ change South Africa
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