State bank will help black firms
ANC treasurer-general Zweli Mkhize yesterday urged businesses to embrace radical economic transformation so that new employment 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 provincial elective conference, the former KwaZulu-Natal premier said non-statutory restrictions that prevented black business owners from starting or expanding their operations played a significant part in stagnating the economy.
He also bemoaned the fact that black professionals found themselves being slighted at companies as opportunities for growth dried up.
“At some companies you will find that at board level there are a number of white males. If those black employees are not there to be placed in the leadership pipeline, then the situation will get worse.”
He said “certain unwritten rules” on how people can access finance were an obstacle 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.”
Mkhize fielded questions on what would happen now that the 2015 elective conference had been nullified.
He said factionalism, divisions in the organisation, infighting and arrogant leadership had all played a part in the party being fragmented. He called for calm in the wake of the court decision.
“There needs to be an urgent renewal of the ANC and this must come in the form of service to the people, honesty, integrity and values.”
Mkhize said the judgment could potentially inflame passions and emotions but while conflict was not a bad thing, the argument should never reach the level of conflict and hostility that could lead to a split in the party.