STATEMENT ON THE PRESIDENTIAL BLACK BUSINESS WORKING GROUP

Issued by the Presidency

30 October 2001

1. A very successful meeting of the Presidential Working Group on Black Business, chaired by the President was held, today, 30 October 2001. The meeting was attended by a number of Ministers and a large delegation from Black Business.

2. Government was represented in the meeting by the following:

• Essop Pahad, Minister in the Presidency;
• Phumzile Mlambo Ngcuka, Minister of Minerals and Energy;
• Jeff Radebe, Minister of Public Enterprises;
• Stella Sigcau, Minister of Public Works;
• Lindiwe Hendricks, Deputy Minister of Trade and Industry;
• Mojanku Gumbi, Legal Advisor to the President;
• Prof. Wiseman Nkuhlu, economic Advisor to the President

3. While the principal matter for discussion was the Government's response to report of the Black Economic Empowerment Commission (BEECom), the meeting also received a report on the merger process between the business organisations.

4. Government's response acknowledged the valuable contribution that has been made by the BEECom Report and that Government would consider strongly the various recommendations made in it. In particular Government indicated that there was an urgent need for a strategy for black economic empowerment that elicits strong commitment from all stakeholders -Government, Big Business, Black Business and Trade Unions. Such a strategy would encompass the most appropriate institutional arrangements to advance BEE and may include the creation of a Council to oversee and monitor the implementation of a BEE strategy.

4. The meeting acknowledged the contribution that Government is making towards BEE, noting however, the challenge was enormous and considerably more has to be done by the social partners to hasten BEE.

5. In regards to BEECom proposal that a BEE Act be proposed, Government expressed the view that legislative interventions may be necessary and to this end would investigate the changes that have to be made to existing legislation and the feasibility of drafting a new piece of legislation to provide clarity and guidance on BEE.

6. Government agreed to the following process with timeframes for the development and announcement of the strategy:

• The constituting of a working group comprised of representatives of Government and Black Business to discuss a draft report before the middle of November 2001;
• Draft strategy report would be circulated to all stakeholders for comment before being finalised;
• Strategy document to be presented to the Cabinet

Lekgotla in January 2002 for consideration and would be announced in the State of the Nation address of the President to Parliament in February 2002.

7. In regards to attempts to unite Black and White Business through the creation of a single organisation, the meeting noted the critical role of business organisations in transformation. The government expressed an interest in unification and indicated that there is a need for business organisations to agree on a framework towards unity. It was further noted that this was a process for business organisations themselves to resolve and that government is not going to take sides.

8. The meeting was briefed on the New Partnership for Africa's Development. The need for active participation of business in the initiative was asserted. The Black Business Working Group will give leadership and guidance on the mobilisation of business to play a role in the realisation of the objectives contained in the NEPAD.

Enquiries: Bheki Khumalo
083 256 9133