It is evident, according to President Cyril Ramaphosa, that South Africa has made progress toward reforming a racially imbalanced economy.
He stated on Wednesday that “far over 300,000 black entrepreneurs currently own over half of all small enterprises in the formal sector.”
There has been significant progress made in employment equity in addition to the advancement of black and female South Africans in management, ownership, and shareholding of firms.
President Ramaphosa said at the inaugural conference taking place at the Sandton Convention Centre, “As we reflect on this success, we must also critically review areas where transformation has been sluggish and execution has been weak.”
The conference should outline our individual and communal responsibility for promoting inclusive entrepreneurship in the nation, the President said, as well as recognise and celebrate the accomplishments of the Black Industrialists initiative.
He claimed that two fundamental commitments form the foundation of the nation’s black industrialists strategy.
This was done to ensure greater variety in the economy’s ownership and control, which is essential for social cohesion and economic dynamism, as well as a commitment to support developing businesses to advance inclusive industrialization.
Our plan strives to ensure that we achieve better economic representation while also boosting prosperity and jobs.
Approximately 900 black industrialists have received help over the past six years from the Department of Trade, Industry and Competition, the Industrial Development Corporation, the National Empowerment Fund, and other organisations.
The Industrial Development Corporation’s estimates imply that this program’s socioeconomic benefits may have gone much further.
This includes bolstering and generating 55,000 jobs and boosting the GDP of our nation by almost R160 billion, according to President Ramaphosa.
The first Black Industrialist and Exporters Conference will highlight both the prospects that the Africa Free Continental Trade Area (AfCTA) offers and the development of government initiatives fostering access and transformation to more black industrialists in the sector.
The conference will also focus on the value that broad-based empowerment contributes to the economy and how it supports growth and job-creation strategies.
Over 800 black industrialists, including new entrants, women, and young people in industries with high competition, have been empowered by the programme to date.
According to President Ramaphosa, small firms continue to gain from the state’s preferential procurement policies and are given support to develop and thrive.
“These accomplishments bear witness to a common dedication to reform and to strengthening cooperation between the public sector, the business sector, and other economic actors.
Even while we are working hard to realise the Freedom Charter’s ideal that everyone will benefit from the nation’s prosperity, the structural flaws in our economy still exist, the President stated.
Barriers
In any economy, he said, entrepreneurship and self-employment serve as the primary drivers of growth.
They foster innovation, increase market competition, and introduce fresh goods and services to an economy.
This entrepreneurial shortfall is mostly a result of the previous policies.
But even after 28 years of democracy, there are still obstacles standing in the way of black entrepreneurs taking an active part in the economy fairly.
He claimed that these obstacles are particularly difficult for women, young people, and people with impairments, as well as for business owners in townships and rural areas.
This is because small business owners struggle to access capital, markets, technology, and infrastructure.
The President also discussed bureaucratic barriers such as red tape.
In a broader sense, there is also the economy’s and ownership patterns’ concentration, as well as their isolation from important value chains.
Due to this, we must keep an eye on the future even as we celebrate black business success.
This conference is about accelerating the transformation agenda while we are here to discuss lessons from the Black Industrialists Programme and other projects.
Shedding loads
The President also addressed the nation’s energy crisis, claiming that it is being resolved.
“In particular, we must take prompt, firm action to stop the load-shedding that is harming our economy and upsetting our community.
Black industrialists, like every other player in the economy, are unable to expand without a consistent source of affordable energy.
Over the past four years, a lot has been done to change the energy landscape of the nation and bring online new generation capacity.
“But that is insufficient. And we must act more quickly.
For this reason, I have gathered all pertinent departments and organisations to work on a coordinated set of actions to supply more electricity to the grid as soon as feasible.
We are already holding discussions about these measures with social partners, and we will soon be able to announce a set of actions that effectively address our energy situation, he said.
Discussion boards
The conference will feature six high-level panel discussions on topics such as quantifying the impact of BEE, assessing the impact of broad-based empowerment, enhancing the impact of transformation, facilitating transformation, the role of supplier development and procurement, and challenges and opportunities with financing black industrialists.
Ministers, business and civic leaders, and well-known black businessmen will be among the panellists.
Additionally, the conference will make the most of the chances for attendees to network with possible funders, clients, and suppliers.
President Ramaphosa visited the booths set up at the conference venue by the various companies presenting their goods and services before delivering the keynote address.
He was joined by a few Cabinet Ministers and business representatives.
At the Presidential Honors for Excellence event later this evening, President Ramaphosa will present awards to exceptional black industrialists.