Businessman and son of President Jacob Zuma, Duduzane Zuma, has defended his involvement in black economic empowerment (BEE) deals and vowed to give away 70% of his stake in an ArcelorMittal SA (Amsa) deal.

"I am very pleased to announce that I have decided to forgo 70% of my proposed allocation and spread it among other South Africans who are needy and disadvantaged like I once was," Duduzane Zuma said in a statement.

He said that his close business allies the Gupta family had also agreed to give 70% of their own allocation in the Amsa deal.

Duduzane Zuma said that he would set up a broad-based share scheme for disadvantaged South Africans to distribute shares in the controversial Amsa deal.

He said that his Mabengela Empowerment Trust is worth over R1-billion. A share would go to widows and widowers, orphans and dependants of police who died in the line of duty since 27 April 1994.

Another would go to a bursary fund for under-privileged students studying at universities.

"The inaugural award will go to the University of Johannesburg.

"We will particularly target universities in historically disadvantaged areas or universities with a large proportion of students from historically disadvantaged communities," said Duduzane Zuma.

A portion would go towards support of women in rural communities and pay for the education of orphans in all provinces.

Duduzane Zuma has been chastised by the Congress of South African Trade Unions (Cosatu) after he was announced as one of the beneficiaries in Amsa's black economic empowerment deal worth over R9-billion.

Cosatu general secretary Zwelinzima Vavi said: "The open way in which prominent 'business figures', linked to top political leaders, deepen perceptions that there is blatantly abuse of power to concoct illegitimate business deals worth billions of rands."

Zuma defended his involvement in the deal, saying that it had nothing to do with the fact that his father was the president of the country.

"I would like to point out that I have been in business long before my father was President," he said.

"I am a business man in my own right and not because my father is President."

He said that he had "never done business with government" and that hard work and dedication had helped him establish himself in business.

However, Duduzane said that his own career had been hindered in the years after his father was dismissed as deputy president by former President Thabo Mbeki.

"My career as a businessman developed deep roots during the years after my father was removed from government.

"My father endured a lot of political persecution and was hauled from one court room to another to face politically instigated charges and allegations.

"This was a very difficult time for my family and I. We were ostracised and treated like lepers," said Duduzane Zuma.

He said that him and his brothers could not find business opportunities or even employment.

They also struggled to secure appointments for job interviews because of their family name.

He also defended the use of black economic empowerment in South Africa.

"Black economic empowerment is essential to address the racial inequalities in our economy and in our society," said Duduzane Zuma.

He said that there could be no sustainable black economic empowerment without the emergence of successful black entrepreneurs who would be capable to empower others and create job opportunities.