Pretoria: The empowerment of previously disadvantaged persons is a constitutional imperative that the government will not abandon. This is according to President Cyril Ramaphosa, who addressed the nation through his weekly newsletter on Monday.
According to South African Government News Agency, President Ramaphosa stated, “Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative.”
Citing Statistics SA, President Ramaphosa highlighted legislative steps like the Broad-Based Black Economic Empowerment Act and the Employment Equity Act, which have been built to advance transformation of the economy. “The progress we have made is undeniable. We have seen real changes in ownership patterns, including more businesses owned by women. We have seen changes in management control, enterprise development, and skills development. According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29%, and Indian households of 19%,” he said.
He acknowledged that despite progress, white households still enjoy income five times higher than that of their black African counterparts. “Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Transformation is not a favour. It is a necessity,” the President noted.
President Ramaphosa also challenged the notion that economic growth and transformation cannot co-exist. “We must dispense with the false notion that we must make a choice between growth and transformation. Economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable.”
He emphasized the importance of initiatives like the Black Industrialists Programme and the establishment of the Transformation Fund to support emerging businesses. “We must open the levers of funding for black-owned businesses. There is a critical need for black-owned businesses to access funding on affordable terms,” he said.
The private sector is urged to empower more black-owned businesses beyond improving their BBBEE scorecard. “As we develop our infrastructure, grow new industries like green hydrogen and electric vehicles, and drive localisation and reindustrialisation, we will continue to ensure that transformation is our guiding principle.”
In conclusion, President Ramaphosa called on all South Africans, particularly the private sector, to recommit to economic transformation. “Let us move forward with greater urgency, unity, and ambition, to build a South Africa where all can truly share in the country’s wealth.”