Zuma's statements on black ownership of JSE misleading, fuel racial tension - Solidarity

20 February 2015

President Jacob Zuma is misleading South Africans by claiming that black South Africans own only 3% of the listed share capital on the Johannesburg Stock Exchange (JSE) and, in making such a claim, is fuelling racial tension, trade union Solidarity said today. Zuma made this statement yesterday during his speech following the parliamentary debate on his state of the nation address.

According to Johan Kruger, deputy general secretary of Solidarity, in-depth research by Alternative Prosperity shows that by the end of 2013, black South Africans in fact owned at least 23% of the shares on the JSE. Of this figure, 10% was directly owned by black investors and 13% indirectly owned through mandated investments such as pension funds.

"This does not mean that the remaining 77% was owned by white South Africans. Foreigners owned 39% of the JSE in 2013. A further 16% was in South African ownership, but Alternative Prosperity could not determine which population group owned it. The remaining 22% was owned by white South Africans," said Kruger.

According to Kruger, Zuma is negating the magnitude of economic change that has occurred already. "The figure of 3% that Zuma cited is not only incorrect, it also creates the misconception that all shares which are not owned by black South Africans are owned by white South Africans."

Statement issued by Johan Kruger, Deputy General Secretary: Solidarity, February 20 2015

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