Pres. Cyril Ramaphosa in parliament on Thursday afternoon. (Photo: GCIS/X)
Pres. Cyril Ramaphosa does not agree that black economic empowerment (SEB) is an obstacle to economic growth.
“It’s false. It’s lies. It’s just a slogan,” Ramaphosa said on Thursday afternoon during a session of parliament – the first session since the Constitutional Court’s ruling on the Phala Phala case.
Ramaphosa is currently answering questions about, among other things, economic growth and job creation in the National Assembly.
“Dear member, I want to give you just one example. Just one sector, and that sector is mining,” Ramaphosa said a short time ago in response to a question about BEE.
“Before 1994, and as a (then) organizer of miners, I should know, the mining industry in our country was controlled by six mega-companies. They owned all the mineral rights in South Africa and they tended to keep them forever. One of them actually once said that once we are given mineral rights, they become our rights forever.
“They (mineral rights) are like dried biltong. We just cut what we want, eat it and put it away.”
Pres. Cyril Ramaphosa in parliament on Thursday afternoon. (Photo: GCIS/X)
Ramaphosa said that extended mineral rights since 1994 had created the necessary space for black people to enter the mining sector.
“Today there are many black people in the mining industry. They have always been just gold miners. Not owners. Today that industry has many black entrepreneurs.
“Some black mining companies are among the biggest in the industry, for example Sereti.”
Seriti is a broad-based, 92.76% black owned and controlled South African mining company.
Ramaphosa pointed out that nowadays black engineers are employed at management level “and they manage those companies efficiently. More job opportunities are created.
“So, if people come up with this false story that black economic empowerment is an obstacle to economic growth, go to the mining industry and see what this democratic government has done. It has changed the landscape of the mining industry.
“And black people participate fully.
“How can anyone say that this has hindered the growth of our economy?” Ramaphosa wanted to know.
“I think those who say that should hang their heads in shame.”
Pres. Cyril Ramaphosa in parliament on Thursday afternoon. (Photo: GCIS/X)
“I am glad you have chosen a sector like mining, Mr. President, which is the ninth largest contributor to our GDP,” Mmusi Maimane of Bosa said in response.
“I want to pick the fourth largest contributor, namely manufacturing.”
Maimane then pointed out to Ramaphosa that Morocco had overtaken South Africa as the largest motor vehicle manufacturer in Africa last year.
“So, you go out and get capital in, but I would argue that you are being let down by your employment minister.
“Because in reality, if we lose Volkswagen in Gqeberha, it goes to Morocco, which means we lose the whole town and jobs.
“So, Mr. President, I want to ask you: Are you willing, and I’m willing to work with you on this, to introduce reforms that will bring electric vehicles into our market so that we can increase manufacturing? Are you willing to also get rid of the minister of labor so that we can free up our economy so that the investments that you get … can directly contribute to job creation?”
“Our young people are losing their future, Mr. President, let’s act.”
“The low levels of employment in our country are a challenge for all of us,” Ramaphosa responded to Maimane’s comments.
“Manufacturing in our country has decreased. A number of factories have closed. We admit it.
“The industrial policy process we are involved in, which will soon be announced by the Minister for Trade, Industry and Competition, is aimed at ensuring that we generate more growth in our economic activity, particularly in manufacturing.”
Ramaphosa then said that none of his ministers working with “economic affairs” had disappointed him.
“In fact, I found them to be doing quite a bit of work.”
The question and answer session in parliament continues.