10 April 2003

The deputy director-general for enterprise and industry development in the department of trade and industry, Lionel October says the key driving force for economic growth lies with people’s enthusiasm to get involved in entrepreneurial activities.

Presenting the government’s strategy for broad-based black economic empowerment (BEE) to the portfolio committee on trade and industry in Parliament on Wednesday, October said the main structural problems of low economic growth and lack of social development in the economy needed a targeted and focused strategy.

"Previous policies have led to a reduction in the entrepreneurial base among black people and the reduction in their economic assets, and that is the major constraint on our growth. The skills base of our population is extremely low, and that impacts on our long-term growth rate," said October.

"The reason we need this strategy is not simply for political or moral reasons; for the economy to grow fast we need to include the majority of black people in that economy," he said.

He pointed out that the important element of the strategy is not to repeat the mistakes of the past, which had a high concentration and domination of the economy among a few white companies.

October said the strategy also seeks to promote good governance to prevent the situation where black empowerment is only for few people with political connections.

"We want a broad range of companies, small, medium, rural communities, trade unions and workers to be included and benefit from empowerment," he said.

Since 1994 there has been a range of general initiatives by government to empower the majority of South African citizens, but October said there has been a lack of a coherent over-arching targeted black empowerment strategy.

It was for this reason that a 14-member Black Economic Empowerment (BEE) task team has been established to advise government on envisaged BEE legislation.

The members of the task team are: Cyril Ramaphosa, Saki Macozoma, Patrice Motsepe, Derek Cooper, Gloria Serobe, Danisa Baloyi, Buhle Mthethwa, Vuyo Jack, Ronnie Ntuli, Loyiso Mbabane, Imogen Mkhize, Alan Hirsch, Philisiwe Buthelezi and Lionel October.

According to Trade and Industry Minister Alec Erwin, the task team will serve until the Advisory Council on Black Economic Empowerment has been appointed.

"The task team will finalise legislation and devise the guidelines outlined in the black economic empowerment strategy. In the course of its duties the task team will also liaise with various interested parties," Erwin said.

Source: BuaNews