The Black Business Council (BBC) recently hosted its Gala Dinner with Deputy President Paul Mashatile as the guest of honor. The event aimed to promote black excellence and encourage the participation of black South Africans in the mainstream economy. Mashatile emphasized the importance of supporting youth in expanding their economic opportunities, especially in light of the commemoration of the 1976 youth uprising in June.
Investing in Youth and Communities for Future Growth
Mashatile urged businesses to invest in their communities and schools to promote growth and development for future generations. He emphasized that investing in the youth is crucial for expanding economic opportunities and creating a brighter future for all.
Celebrating Black Business Leaders Despite Obstacles
The BBC’s decision to honor black business leaders showcased that even with significant obstacles, it is possible to thrive. The event also marked the 20-year anniversary of the Broad-Based Black Economic Empowerment (B-BBEE) policy framework. Since its inception, the policy has advanced economic transformation and the empowerment of historically disadvantaged individuals.
Progress and Room for Improvement
Statistics show a significant increase in the number of black-owned companies in South Africa. With 2.5 million black-owned businesses, millions of individuals are employed across various industries such as manufacturing, services, and technology. Black businesses’ contribution to GDP growth has also increased, ranging from 28% to 35%. However, to maintain progress, the policy’s execution must be improved.
Collaboration for Success
Deputy President Mashatile called for collaboration between social partners to ensure the success of the B-BBEE policy. He also addressed the issue of B-BBEE compliance reporting by companies, which has decreased over the years due to low compliance levels. The government continues to review the B-BBEE policy, aiming to make it more inclusive, transparent, and impactful.
Supporting Black Businesses
Various initiatives support black businesses such as preferential procurement, skills development, enterprise and supplier development, and employment equity. Institutions like the Small Enterprise Development Agency (SEDA) and the National Empowerment Fund (NEF) provide mentorship, business development services, and financial support for black-owned businesses.
Supporting Black Youth
The government has launched programs for skills and entrepreneurship development among black youth. Initiatives such as the National Youth Development Agency (NYDA) and the Entrepreneurship Development Program provide training, mentorship, and funding for young black entrepreneurs.
Women’s Empowerment
Gender equality and women’s empowerment are essential to global development. Mashatile expressed concern about the underrepresentation of women on boards of JSE-listed companies and the pay gap between men and women. The government has implemented initiatives to promote women’s economic participation, such as the Women Empowerment Fund and the National Empowerment Fund.
Public-Private Partnerships and Investment
Black businesses can benefit from public-private partnerships and investment in sectors like agriculture, industrial, and infrastructure. The government’s Black Industrialist Programme has already assisted around a thousand black industrialists in developing successful businesses.
Responding to Challenges
South Africa faces challenges such as power outages, weak growth, corruption, unemployment, and global issues like the COVID-19 pandemic and the war in Ukraine. The government has responded with interventions like the Economic Reconstruction and Recovery Plan, Operation Vulindlela, and the Just Energy Transition Plan to mitigate these challenges.
The African Continental Free Trade
Mashatile emphasized the importance of the African Continental Free Trade, which could inject $450 billion in investments and lift millions of people out of poverty. The government is working to make the freight rail network more accessible to third parties, encouraging investment and competition.
Collaboration for Economic Reconstruction
The Black Business Council serves as a valuable partner in guiding the government to address challenges and streamline policies. As a nation, collaboration is necessary to reconstruct the economy, ensuring that no individual or community is left behind.
