BUSA

Media Release

15 June 2017

Where do we really stand on black economic transformation?

BUSA examines the state of play and what is needed to accelerate transformation

Johannesburg
[Insert Date]
For immediate release

Business Unity South Africa (BUSA) has released a ground-breaking positioning paper entitled A
Business Approach to Black Economic Transformation for Inclusive Growth, which examines the
extent of black economic transformation in South Africa today as well as the actions necessary to
accelerate the process. The paper is the outcome of an internal colloquium specially convened to
examine these issues.

“It was important to start by clearly defining exactly what the term ‘black economic transformation’
means,” says BUSA CEO, Tanya Cohen. “Unless we as the business community can define what we
mean when we speak of transformation - and what the ultimate goal of the process is - our efforts to
make a difference in today’s rapidly changing environment are going to be scattered and
ineffective.”

The colloquium therefore began by defining the desired end-state of black economic transformation
as a deracialised economy that seeks to broaden and deepen economic benefit and participation.

“Based on this, we were able to take an in-depth look at how we are faring in terms of that indicator
at every level in business,” says Cohen.

“It was clear from our discussions that the pace of transformation has been insufficient to support
solid economic growth, better rates of employment and broad-based social development. Members
were also unanimous in stating that BUSA is fully committed to changing this and to cooperating
with both government and labour in order to fast-track the process.”

In the resulting positioning paper, the organisation has clearly outlined the key interventions
necessary to increase the pace of transformation in South Africa. These include a rapid and
widespread improvement in the availability of quality education and skill development programmes
for black people; the creation of broader employment opportunities, particularly for the youth; and
large-scale black enterprise development.

“In order to achieve these objectives, there are specific areas that we as the business community
need to focus on,” says Cohen.
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In the case of enterprise development, this means not only expanding the scope and extent of
business opportunities, but also removing many of the regulatory barriers that impact on the
development of black enterprise. Interventions also need to be more transformative, developmental
and systemic in nature, and need to be inclusive of diverse types, sizes and formats of business in
different sectors.

In terms of education and skills development, sector programmes designed to improve occupation-
specific skills need to be developed or enhanced. Business also needs to extend its support for basic
education and to be an active participant in a much-needed and extensive review of institutional
structure and capacity in education.

With regard to increasing employment opportunities, hurdles to the establishment and

development of business enterprises - especially SMMEs - need to be removed. Systematic
interventions to support youth employment in particular and employment in general also need to be
developed and implemented as a matter of priority.

“Of course, corruption, maladministration and state capture by narrow vested interests will need to
be decisively addressed too, as these will continue to undermine economic transformation if they
are not eliminated, “ says Cohen. “It is also essential that government, business, labour and other
stakeholders work together in partnerships to speed up transformation, whether through such
institutions as Nedlac, through policy interventions, or through developing and implementing
systemic initiatives and programmes.

“Our country’s future stability, success and sustainability depends on meaningful black economic
transformation, so it is the task of all stakeholders to work together in order to accelerate the
process.”

End.
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About BUSA
[Insert BUSA boilerplate]

Editorial Contact:
Lesego Marimo
Head of Client Service
PR Powerhouse
+27 (0)12 880 0522
+27 (0)73 266 6025
lesego@prpowerhouse.co.za

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