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S.Africa must reform white-dominated economy

June 26, 2012

South Africa’s economy is still largely under the control of whites who held power under apartheid, President Jacob Zuma has said calling  for a “dramatic shift” to redress the wealth balance more evenly in favour of the black majority.

Zuma, speaking at the start of a major policy meeting of his ruling African National Congress, said the challenges of poverty, unemployment and inequality posed long-term risks for Africa’s richest country 18 years after the end of apartheid.

Without giving details, he called for a “dramatic shift and giant leap” in coming years to spread the country’s wealth more equitably, mentioning the distribution of mineral resources and land ownership as areas which needed to be overhauled. Zuma said the proposed “second transition” was necessary to complement the negotiated end of apartheid in 1994, when he said “certain compromises” over economic ownership had been made to ensure a smooth political transition from white minority rule.

The ANC has drafted a raft of policy documents that call on mining firms to pay more to the state to help finance welfare spending.The proposals also advocate relying on state-owned enterprises to be engines of job creation and growth. Zuma said the debate over how the country’s mining wealth should be used must go beyond simply the question of “to nationalise or not to nationalise.” Calls for nationalisation from some sectors of the ruling ANC have stirred investor concerns in the world’s No. 1 platinum producer.

He also called for a new programme for land reform, saying the current “willing buyer-willing seller” policy had been too slow in returning white-owned farmland to blacks dispossessed by the apartheid state. But he did not spell out what alternative mechanisms of land ownership transfer should be adopted.

Do you think it is possible for South Africa to reform the white-dominated economy without hurting the economy itself and are there any other ways of dealing with problems effecting the economy?  How much is the ANC to blame for economic woes?

Comments

In 18 years these new rulers could not create wealth for the black majority, except taken away that was created through hard work before 1994.
To create wealth firstly EDUCATE the people properly. Education is not working. Low level for pass rates for worthless high school diplomas and even university degrees.
Rigid labor laws keep investors away that might team up with black partners, but most are only interested in easy quick riches.
Mindsets got to change, but they chose to go after the white businesses. Nothing good will come out of this !!!
Anc youth league advocating a Zimbabwe like solution, crazy.

Posted by Wessel | Report as abusive
 

Zumma look acrross the border , ask yourself ,you want to “go that way” ??(Mugabe)
“Kill The Boer” ?? , A self defeating pollicy …. go ask Hitler…
You …. Idiot , go respect your elders….
(And by the way, a shower will make you imunne to HIV , ask Idi Amin ( sleep on real high bedpost , if not the Tokolosi will get you !!! )

Posted by Me_bee | Report as abusive
 

The designation of white and black has been discontinued some 18 years ago, so how do they now decide that a certain percentage of the economy is ‘white-dominated? In fact the pension funds, mostly for black workers, and the Public Investment Corporation, which invests Government funds (Mostly black civil servants’ pension money) dominates the economy. Add to this the huge portion of the economy which is locked up in non-monetary tribal property, and any of the arguments that whites still own the agriculture and economy looks silly.

Posted by Tiresias07 | Report as abusive
 

i am beginning to be weary of these impolitic rhetoric by the president. south Africans are blinded by anger and grief over what happened during the apartheid era. this is the a truth understood by politicians like president zuma and many others,that if you want to get away with any fallacies like corruption or inability to solve issues confronting south African, blame it on apartheid. this is pathetic and embarrassingly ridiculous. the president said ” large majority of south Africans live in poverty”, but what did he do, he wants R200 000 000 of state funds to improve his kandla palace, this is abominable. south African we should be ashamed of ourselves by letting such injustices to occur right in-front of our very eyes. in conclusion i say south Africa is regressing, the only thing keeping us afloat is the level of institutionalization not government.

Posted by lumkile | Report as abusive
 

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