Businesses urged to embrace radical economic transformation

ANC treasurer-general Zweli Mkhize yesterday urged businesses to embrace radical economic transformation so that new opportunities can be created for unemployed South Africans.

Speaking to editors and journalists in Durban, soon after the landmark court decision that nullified the results of the 2015 KZN provincial elective conference, Mkhize said non-statutory restrictions, that prevented black business owners from starting or expanding their operations, played a significant part in stagnating the economy.

Mkhize also bemoaned the fact that black professionals found themselves being forced out at companies, as opportunities for growth dried up.

“At some companies you will find that, at board level, there are a number of white male members.

“If those black employees, who find themselves being turned out of the system, are not there to be placed in the leadership pipeline, then the situation will get worse.”

Mkhize said “certain unwritten rules” about how people can get access to finance were obstacles in the path of economic transformation.

“Credit-worthiness is still guided along racial lines and pre-existing networks also reflect these racial lines,” Mkhize said.

He said that this was counter-productive as any initiative to broaden the economy would need tax incentives for businesses that want to work in townships.

Mkhize said the current structure of the economy was too structured and disadvantaged emerging businesses.

“There is a need for those in the financial services sector to address those who are marginalised.

“This is the reason we are thinking of a state bank as black entrepreneurs don’t feel they have enough support from the banks.”