Durban - Finance Minister Malusi Gigaba has called on business to play an active role in addressing inequality in the country, saying one of the ways to achieve this is to cap executive remuneration.
“The same challenge needs to be raised for our state owned enterprises so that executive remuneration does not exceed remuneration of all other workers in a way that forces those at the lower ranks to demand more remuneration which may and has proven at times to be unsustainable”.
Gigaba was speaking on Thursday morning at the Brand South Africa though leadership breakfast which explored the role of business in ensuring inclusive growth is achieved.
Gigaba told the meeting that business has to demonstrate that people come before profits saying the most marginalised are the ones who bear the brunt of unscrupulous boardroom activities like collusion and price fixing.
Gigaba said collusion has undermined the government’s ability to roll out the national infrastructure plan as the government relies on the private sector for the efficient delivery of infrastructure.
Poor infrastructure continues to undermine the intra-continental trade in Africa, Gigaba said adding that Africa’s infrastructure backlog is estimated at $100 billion a year, while available finance covers only half of this
“The combination of years of underinvestment and exploitation has meant that African roads and railways were mainly designed and built to facilitate transportation of raw materials to markets outside the continent”.
INDEPENDENT MEDIA WEF TEAM