More blacks must move into JSE top echelons immediately, says NEF boss
THE NATIONAL Empowerment Fund (NEF) has reiterated its call for an immediate increase of direct black ownership and shareholding in the JSE.
NEF chief executive Philisiwe Mthethwa said sector charters and revised legislation on black economic empowerment (BEE) were enough to ensure meaningful participation of black people in the economy.
Mthethwa said that the private sector did not demonstrate meaningful commitment to the achievement of BEE.
“One of the key challenges that requires resolution is the current financing structures which make it near impossible for black investors to realise any value,” Mthethwa said.
“This results in equity leakage caused by the need to service finance raised.”
Too few
The call comes in the wake of President Jacob Zuma’s claim during his reply to the State of the Nation address last month that black ownership of the JSE stands at 3 percent.
Zuma also based this assertion on a research that was conducted by Who Owns Whom in measuring black ownership and control in the economy.
The remarks sparked a debate with some arguing that the true value of black ownership of the top 100 companies on the JSE had increased to 23 percent through BEE schemes and vehicles such as unit trusts and pension funds.
But Zuma hit back, arguing that his contention was based on the differences between direct ownership and shareholding and unlisted share ownership was not disclosed in the public domain.
On Friday, the NEF came out in Zuma’s support, charging that the method of measuring black ownership and control on the JSE should be done through equity.