Johannesburg - “Radical economic transformation” has
become the South African government’s new mantra as it advocates giving the
nation’s black majority a bigger stake in the economy 23 years after the end of
white-minority rule.
What exactly it means is unclear. The phrase doesn’t
appear in the National Development Plan, the government’s economic blueprint,
and President Jacob Zuma and his deputy Cyril Ramaphosa have painted different
pictures of how it should be translated into policy.
Zuma is due to step down
as leader of the ruling African National Congress in December and as president
in 2019, and Ramaphosa is one of the front-runners to succeed him. Here’s what
they’ve been saying.
President Jacob
Zuma:
The constitution should be changed to allow the state to
seize land without having to pay for it to address skewed ownership patterns.
There must be a fundamental change in the structure, systems, institutions and
patterns of ownership, management and control of the economy to ensure it
benefits all South Africans, especially the poor, most of whom are African and
female.
Black-controlled companies must benefit more from the government’s R500
billion ($37 billion) annual procurement budget. More companies listed on
the Johannesburg Stock exchange should be owned by black people.
There should
be more black industrialists and farmers. Companies and the government should
do more to hire and promote black staff. Black and white professionals doing
the same job should be paid equally.
Deputy President
Cyril Ramaphosa
Radical economic transformation is a “national
imperative” and means building a more equal society and drawing more people
into the mainstream economy. While the constitution says the government should
pay just and equitable compensation for land, a code should be drafted spelling
out what this means and there should be a move away from paying market-related
rates.
Ownership patterns in the economy must change at a faster rate and in a
more meaningful manner to enable the country’s people to share in its wealth.
There needs to be a massive skills development drive to prepare young South
Africans for the workplace.
Agricultural land must be redistributed on a far
bigger scale and more speedily than is currently happening and the new owners
must be equipped to farm it productively. The government should use its
infrastructure investment program to build local manufacturing capacity and
where appropriate ensure contracts go to black-owned companies.
More black people
should become producers, financiers and business owners.