Whites still control SA economy, govt needs to take drastic steps - Zuma

26 June 2012

By Jon Herskovitz and Peroshni Govender

South Africa’s economy is still mostly under the control of whites who held power under apartheid and the government needs to take more drastic steps to make sure the black majority can benefit from its wealth, President Jacob Zuma said on Tuesday (26/06/2012).

Zuma, speaking at the start of a major policy meeting of his ruling African National Congress, said the challenges of poverty, unemployment and inequality posed long-term risks for Africa’s richest country 18 years after the end of apartheid.

"The structure of the apartheid-era economy has remained largely intact,” Zuma told several thousand ANC delegates.

"The ownership of the economy is still primarily in the hands of white males as it has always been,” he said.

The ANC has drafted a raft of policy documents that call on mining firms to pay more to the state to help finance welfare spending. The proposals also advocate relying on state-owned enterprises to be engines of job creation and growth.

"The time has come to do something more drastic towards economic transformation and freedom,” Zuma said.

But some economists have warned it would be dangerous to rely on state-owned firms since almost all of them have been mired in debt and management problems.

Zuma also said the debate over how the country’s mining wealth should be shared should go beyond simply the question of "to nationalise or not to nationalise.”

The party produced a research paper earlier this year saying nationalising mines could bankrupt the state, but it suggested increasing taxes on windfall mining profits.

Zuma said the conference should consider how the state can obtain an "equitable share” of mineral wealth, which could be used more to benefit poor communities.

He also called for a new programme for land reform, saying the current "willing buyer-willing seller” policy had been too slow in returning white-owned farmland to blacks dispossessed by the apartheid state. But he did not spell out what alternative mechanisms of land ownership transfer should be adopted.

South Africa’s black economic empowerment policy designed to give disenfranchised blacks greater ownership of the economy should be strengthened, Zuma added.

This policy has been criticised from within the ANC and by its governing allies in organised labour as only benefiting a small sliver of the population with political ties to the party that has ruled since apartheid ended in 1994.

The policy conference will end on Friday and its deliberations are being held behind closed doors.

(Reporting by Jon Herskovitz and Peroshni Govender; Editing by Pascal Fletcher) - Reuters

Reader's Comments

Report Abuse Author: alvonhumb Date: 27 June 2012 14:31

Now let's see.... Collapse in education delivery (witness EC and Limpopo in recent days as e.g.) under ANC; Corruption and theft of public funds at leadership level (witness Kabuso and many, many others as e.g.); 18 Years of ANC rule including BEE policies that have now in a place a new privileged elite (largely black), replacing an old apartheid "elite". Cmde Zuma, one suspects that keeping a black underclass in place by non-delivery suits ANC politics. The elite have the power and the uneducated will swallow the drivel you are spouting. They will queue up, as before, to vote for the Party (you assume). Beware though, despite the incompetent corruption, a new middle class is emerging and seeing through the "blame" culture and recognising where the true problem lies - with the ANC itself. It will not work as it has in Zimbabwe, and absolute control by the ANC is coming to an end.

Report Abuse Author: KingArthur Date: 27 June 2012 12:28

History all over again HITLER blamed the Jews, Mugabe blamed the whites!!!! Thank the Pommies for putting infrastructure in Africa, without it there would not have been any economic development. Now we are talking about "economic freedom"? Blame it on the white's but be carefull not insult, do your PROPOGANDA or create a culture wereby everything is blamed on the whites. This kind of behaviour will lead to the same outcome as per Hitler or Mugabe time. Nobody will reason anymore wereby the masses will listen to the propapanda crap wereby the whites are to blame for everything. Lets see what happens in the next 10 years.

Report Abuse Author: Bokkie Date: 27 June 2012 10:07

It sounds to me like Zuma is threatened by the so called "white males". I agree with Wayward, everthing that the blacks has taken over from the white is either corrupt, bankrupt or destroyed. So lets see where is SA going to end up if the black wanne take over EVERYTHING?

Report Abuse Author: mastermindPE Date: 27 June 2012 9:51

Showerhead 783 is starting Malema talk as he is getting desperate to stay in power. White men are entrepreneurs, not thieves. We make things happen, not sit on our lazy @sses and expect handouts. Zuma and his useless ANC-pf have created a welfare state, and that is the only way to stay in power for them. As a wise prophet once said - Father help them, for they know not what they do !!!!!

Report Abuse Author: Wayward Date: 26 June 2012 20:21

Black-owned mine, bankrupt. Black-owned airline, grounded. Did they even pay taxes while operating???

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