BBC slams lack of transformation in commanding heights of economy

THE BLACK Business Council (BBC) has lamented the lack of transformation in the commanding heights of the economy.

Transformation and diversity came into the spotlight at the annual BBC summit, which discussed the role of black businesses in the economic reconstruction and recovery plan.

BBC President Sandile Zungu yesterday lambasted the lack of progress since the adoption of the BroadBased Black Economic Empowerment (BBBEE) Act.

Zungu, who was very forthright with his statement, said the act was not ambitious enough to push for transformation of the industries in benefit of black executives since its passing in 2003.

A study by PwC released in January found that the country’s top echelons are yet to mirror diversity according to race, age and gender.

PwC reported that 81 percent of non-executive directors of JSE-listed companies were South African. However, including chairpersons, most were white at 48 percent, with black African non-executive directors making up 40 percent, said the report.

The BBBEE Commission’s report on the National Status and Trends on BBBEE for 2019 showed a 1 percentage point decrease, to 42 percent, in the number of submitted compliance reports by JSE-listed entities and a five percentage point increase, to 15 percent, by organs of state, with the majority of measured entities still failing to comply with the BBBEE Act.

Zungu said black executives were replaced by “mediocre white males” in executive positions due to the approach towards BBBEE, and the demands that “once always empowered”.

“First, the BBBEE Act was not ambitious. As with the democratic project, it merely sought to accommodate black Africans instead of making them the real owners,” Zungu said.

“Second, our white compatriots have become too cynical about the whole democracy project. Not only are they resentful, but some among them are genuinely spiteful of it and its commitments.”

The summit also engaged leaders of business and government on pertinent issues affecting the economy, especially the recovery and vaccination process.

Zungu said the summit served as the BBC’s extension of the advocacy and policy work on socio-economic transformation and inclusive growth.

The global economy is expected to bounce-back in 2021 with vaccines and additional fiscal support in few large economies fuelling a faster recovery in the second half of the year.

Domestically, the economy is also expected to rebound at least 4.2 percent, albeit coming off from a lowbase with a lot of uncertainty also surrounding economic performance as the world continues to grapple with the global pandemic.

Zungu said South Africa needed economic restructuring, not corporate restructure which has failed.

“We need a plan to transfer 70 percent ownership and management control of the economy into black majority hands by 2030,” Zungu said.

“We need to work hand in glove as the social partners – labour, business, government, and communities, to ensure that the Economic Reconstruction and Recovery Plan is fully implemented to ensure that the economy grows.” empowered