By Lehlohonolo Lehana.
President Cyril Ramaphosa says government will be setting a target to undertake market inquiries in more strategic sectors of the economy over the next few years to address high levels of economic concentration by major companies and low participation by small- to medium-sized enterprises.
“We need to open up the economy and make it more inclusive. This means that we need to address features of the market structure that inhibit the participation of black industrialists in the economy, he said.
Ramaphosa was delivering keynote address at the Black Industrialists and Exporters Conference, in Sandton, on March 20.
He said that the International Monetary Fund and the World Bank both agreed that one of the key problems with the South African economy was the high level of concentration, ownership, control and market dominance by large companies.
“If you look at our own economy, you will find that, if you go around various cities of our country, you’ll find the same firms dominating business all around the country. And they are few, they’re white-owned, and they have enormous market dominance. This is precisely what we now need to change,” he said.
Ramaphosa said it was a good moment for the country to reflect on the empowerment journey which is a central part of the changes that have taken place over the last three decades.
“We have about 1 000 black industrialists present here today. This is a living testimony to the changes that have taken place in the past 30 years, and indeed, over the past five years,” Ramaphosa said.
He said empowerment is a historical imperative to provide redress to black South Africans who were discriminated against and excluded under the apartheid regime.
The President said for far too long, the country’s economic landscape was marked by inequality, exclusion and systemic barriers that hindered the progress of aspiring entrepreneurs, especially those from black communities.
The conference takes place on the eve of the 20th anniversary of the implementation of the Broad-Based Black Economic Empowerment Act (B-BBEE Act).
It has shone the spotlight on the achievements, successes, opportunities and strides made by the Black Industrialists Programme since its inception in 2016.
This years’ conference features 53 large companies or procurers making pledges to buy from the growing class of black industrialists.
The conference will culminate with an awards ceremony aimed at recognising the contribution of Black Industrialists towards driving economic growth, social transformation and in advancing inclusive entrepreneurship in the South African economy.