It’s been 30 years since South Africa’s first democratic elections, and our economic environment today looks very different. Within the past few years alone, we have overcome a pandemic, seen the rise of the digital economy and the fourth industrial revolution, and witnessed a meteoric shift towards renewable energy.
Yet in many ways, our challenges remain chillingly familiar — poverty, inequality, unemployment. And these three issues can ultimately be traced to the same root cause — failure to implement inclusive economic strategies that will uplift the poor and advance BEE.
Consider that during apartheid, black South Africans were excluded from meaningful economic participation and business leadership roles, and were relegated to unskilled, low-paying positions.
Today, the Commission for Employment Equity reports that black South Africans occupy 83.5% of unskilled positions and 79.2% of semi-skilled positions. But despite comprising more than four-fifths of our population, black South Africans remain vastly underrepresented in top managerial positions, holding 16.9% of these roles.
Economic empowerment is not just a moral imperative, but a fundamental prerequisite for inclusive growth and sustainable development that will benefit all South Africans
Meanwhile, StatsSA reveals that over the past decade, unemployment rates among blacks have persistently outpaced those of other demographic or racial groups, marking a notable increase from 27.1% in 2013 to 36.1% at the end of 2023.
This demonstrates the impact of the many years in which inclusive economic strategies and BEE were pushed to the side and forgotten in favour of other concerns; the pace of transformation slowed and eventually stagnated.
Post-apartheid, too many black South Africans still encounter glass ceilings within corporates. Likewise, too many remain economically marginalised and excluded from opportunities. Simply consider the poor state of our townships and inner cities, where many live in dilapidated buildings and structures, and are vulnerable to crime. BEE has not yet taken place.
So, as we celebrate Freedom Day, it’s important to not only acknowledge our progress, but recommit to transformation. It’s time to shake off complacency, reignite our spirit of activism, and advance transformation with new energy and vigour.
Economic empowerment is not just a moral imperative, but a fundamental prerequisite for inclusive growth and sustainable development that will benefit all South Africans. Transformation is essential to addressing the long-standing structural economic weaknesses that have strangled our progress.
Put simply, our economy is creating jobs for skilled individuals in urban areas, while a large proportion of our population live in remote and rural areas, and lack the skills and resources needed to access opportunities. To stimulate employment, we must support businesses that are creating linkages with rural economies, as well as labour-supporting sectors such as manufacturing or agriculture.
We must draw more people into the formal economy by creating job opportunities for those in marginalised regions, supporting township businesses and black entrepreneurs, and creating environments in which black-owned businesses can thrive.
This means we must strategically deploy our resources and make targeted investments that will promote broad-based transformation and advance socioeconomic development. We must reduce the obstacles for black businesses and start-ups to succeed by providing business intervention and support services, mentorship and guidance, startup capital, growth finance, and pathways for market access.
Moreover, we must encourage the rise of shareholder activists who will champion diversity and inclusion within organisations and hold them accountable.
Notably, by advocating for diversity at all levels of organisations, we can set a powerful example for others to follow, and enable organisations to harness the full spectrum of talent and creativity within their midst. As a result, research consistently shows that companies with diverse leadership teams and boards outperform their competitors, both in terms of environmental, social and governance (ESG) objectives, as well as in terms of their bottom lines.
We must prepare the next generation of black business leaders for influential positions in organisations by ensuring that every child has access to a high-quality education. This must be complemented by practical learnerships and work experience opportunities, preparing them to hit the ground running and break through those ceilings.
For example, as the CEO of the Moti Group as well as in my role as chair of the board of trustees of the Government Employees Pension Fund, a focus on transformation and employee empowerment through skills training, mentorship and job creation has generated significant value for staff, shareholders and the broader economy.
Transformation will not happen by accident. To achieve the constitution’s vision of a society where all enjoy equal rights and opportunities for economic participation, we cannot afford to lose the gains that have been made or the sacrifices our forebears made in fighting for a democratic South Africa. We must actively work to address historical imbalances and promote the wellbeing of all our people, which will require deliberate action and decisions.
It is time for South Africans to stop talking the talk and start walking the walk.
• Mogajane is CEO of the Moti Group and a former National Treasury director-general
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