By President of South Africa says government has played its role in reversing the economic imbalances caused by the apartheid regime, by creating an enabling environment for black industrialists to participate in the mainstream economy, and export their produce across the world.
Addressing over 1 000 black industrialists at the second Black Industrialists and Export Conference at the Sandton Convention Centre in Johannesburg, Ramaphosa commended the entrepreneurs for their resilience over the years, saying they are changing the economic landscape of black people in the country post-apartheid era.
Ramaphosa reflected on the past three decades as the country will be commemorating 30 years of democracy this year. He said black people were discriminated against and excluded from meaningful education that could have helped them change their economic circumstances.
“We have about 1,000 black industrialists present here today. This is a living testimony to the changes that have taken place in the past 30 years, and indeed, over the past five years. Empowerment is a historical imperative, to provide redress to black South Africans, who were discriminated against and excluded under apartheid,” said Cyril Ramaphosa.
According to the President, South Africa’s economy has tripled since 1994 with the introduction of black industrial players in the mainstream economy and more jobs were created reaching 16.4 million compared to eight million in 1994.
“The impact of this investment is clear from more than R100 billion in turnover generated by these businesses each year and by more than 100,000 direct jobs sustained in their factories, mines and farms. This Conference tells the stories of the industrialists of freedom, who built their businesses through hard work and ingenuity, propelled along by the tailwinds of democracy and opportunity,” said Cyril Ramaphosa.
In government’s master plans tailored for each individual sector in the economy, Ramaphosa said in the auto sector, clear targets have been set for the promotion of black industrialists as component manufacturers. In the clothing industry, government set up a fund to support SMMEs.
In the sugar industry, an industrial fund of R1 billion over 5 years has been put in place, and small-scale black farmers receive about R200 million in support annually.
“We also ramped up the black industrialist programme’s funding. In the past five years, some R24 billion has been committed for black industrialists,” said the President.
“Through measures taken during mergers and other investigations by the competition commission, several large companies have made around R2.4 billion in funding available for supplier development. These include companies like Coca-Cola, Pepsico, Heineken, Shoprite-Checkers, Astron and Massmart.
Google has made R330 million available for young app developers in South Africa. In the Equity Equivalent Investment Programme, over the past five years large car-makers and companies such as Amazon, JP Morgan and Citibank have committed support for black industrialists to a total value of R7.2 billion,” he continued.
Government has opened opportunities for black industrialists to access markets in over 40 countries in the African continent through the African Continental Free Trade Area. It has also expanded the playing field that black industrialist can export their goods to the USA, Europe and the United Kingdom, China, India and the Middle East.
“Government, Transnet, industry and other social partners are working closely to relieve congestion at our ports and increase the volumes of freight being carried on our key rail corridors. The R1.3 billion Energy Resilience Fund put in place to support SMMEs and other firms affected by the energy challenges is fully subscribed,” affirmed President Cyril Ramaphosa.
