President Zuma to follow up on issues raised by BBC

12 September 2016

President Jacob Zuma has undertaken to follow up on the issues raised by the Black Business Council (BBC) at the meeting on Friday, 09 September 2016. The discussions at the meeting focused on various issues relating to economic transformation and in particular the need to accelerate the transformation of the ownership, control and management of the South African economy.

The BBC welcomed the progress made in advancing black economic empowerment in the past few years. These include the establishment of the Small Business Development Department; the Black Industrialists Programme, which is a positive development that has put paid to the negative narrative of painting black people as tenderpreneurs; the participation of South Africa in BRICS and participation of black business in the BRICS Business Council and others. The Council also stated that a lot still needs to be done to fast-track transformation, which needs to be supported by swifter action and responsiveness from government departments.

The BBC mentioned a few areas of concern that should be attended to; including the following:

- The need for the recapitalisation of and independence of the National Empowerment Fund, which is an important vehicle supporting black business.

- Requested the participation of black asset managers in the SME Fund that was announced by the President at the conclusion of a meeting with business in May this year;

- The need to revise the terms and conditions as well as operations of the Jobs Fund which was announced by the President in 2011. Business said the fund remains under-utilised and inaccessible to black business due to the cumbersome procedures.

- Requested that black business be included in major national interventions such as the international road show that was undertaken to market the country and stave off a sovereign downgrade in February this year.

- Government must deal with the Preferential Procurement Policy Framework Act which curtails the buying power of government.

The BBC also raised objections to the Financial Intelligence Centre Amendment Bill and asked the President not to sign the Bill into law.

“I am very pleased that the meeting with the Black Business Council took place. The issue of radical economic transformation is at the centre of the agenda of this administration. We have resolved to work together even closer in order to ensure that we address the important issue of de-racialising the ownership, control and management of the economy”, said President Zuma.

Issued by Bongani Ngqulunga on behalf of the Presidency, 12 September 2016