Remove all barriers to black advancement

IHAVE spent the better part of my adult life involved in the struggle to liberate the black community from political and economic oppression. What needs to be done now to accelerate the development of black entrepreneurs in the industrial sector?

Most of the industrial parks built by the Bantu Investment Corporation and other territorial corporations during the apartheid era are no longer operating owing to the stringent labour laws and policies imposed on small business under the present government.

These laws are directly accountable for the loss of jobs and poor industrial growth. Although the government has acknowledged the legal constraints that impede black business advancement, it is astonishing that so little is being done to resolve the problem.

Repressive laws and policies could be construed as the unintended outcome of the pressure that is continually exerted on the government by the trade unions.

The advent of the new government in 1994 led to the closure of numerous industrial establishments in and on the borders of the former homelands. It caused an enormous amount of social instability and poverty to communities in the affected areas because of the loss of employment opportunities.

It would be prudent for the government and private sector to resuscitate those closed industries that used to provide employment to thousands of rural people. To attract new entrepreneurs to open factories in these areas will require incentives such as free industrial zones in which the usual tax and legal labour policies may not be fully applicable.

The primary role of government is to create a climate for development by removing obstructions that inhibit economic progress. Our government has not yet got all the answers right. It is therefore essential for policymakers to look back very carefully to see where, why and how mistakes were made.

The economy must grow by at least twice the present rate to be able to create employment for the millions now unemployed. Without a higher economic growth rate, the future will remain bleak. Black business people who are expected to play a pivotal role in addressing these challenges are unfortunately still operating on the periphery of the mainstream of business.

If our labour laws — and the bureaucracy and rampant corruption — continue to make it difficult for entrepreneurs to operate freely, it is going to remain problematic for new employment to be created or for entrepreneurs to grow their businesses.

The broad-based black economic empowerment government policy that was formulated to promote the development of black industrialists has not achieved satisfactory progress. More attention needs to be focused on black industrial development by mentoring companies that were involved in the implementation of the policy.

Education is an important instrument for bringing change into any country. We must today encourage black children to follow career paths in the technical sector.

Furthermore, agricultural development has always sparked industrial development. Industrialisation often begins with the processing of raw materials associated with farming.

It is now time for black people to play a major role in the development of agriculture not only as peasant farmers, but on a commercial basis. This should, in the long run, undoubtedly have a positive impact on black industrialisation.

I have accordingly helped to create a Foundation for Rural Development to ensure that blacks are mentored properly to enable them to participate fully in the agricultural industry.

Funds should be made easily available to support those who initiate projects in the industrial and technical sectors.

To create a climate more conducive to the development of black industrialists, we must allow anybody to venture into any business enterprise with less interference from the government or any other source.

All laws, policies or actions that prevent this from happening must be abandoned.

Motsuenyane was the fourth recipient of the Luminary Award of the Free Market Foundation. This is an edited version of his acceptance speech given this week