By 
President Cyril Ramaphosa says “we continue to have this notion that BEE is the one that’s holding our economy back. It is the partial and exclusive ownership of the means of production in our country that is holding this economy from growing” (“Ramaphosa says BEE not an impediment to growth”, May 27).
What absolute balderdash — business owners want to grow their businesses, and they incentivise their executives to do so. One needs to focus on what is discouraging them and other domestic and foreign investors from doing so and investing in our country.
It is unreservedly understood after decades of apartheid that redress and specific interventions were required. As Peter Bruce eloquently wrote in his recent column, “no-one in their right mind thinks it isn’t necessary” (“Fact is BEE is a cruel joke on the poor”, May 29).
However, our GDP growth over the past 15 years has averaged about 1.4% per annum. Zambia’s averaged 3.5% over the same period, comfortably more than twice ours. Tanzania’s was 6.4%, multiples of ours. In aggregate, sub-Sahara African economies grew at a far higher rate than ours.
These economies have had their own challenges, including Covid, but they were not constrained by the raft of suffocating transformation laws and other regulatory restrictions that weigh down our economy.
It is common cause that our logistics failures (Transnet), past load-shedding and rampant crime, among others, have combined to constrain our economy from growing. For the president to argue that BEE has not played a part in restricting growth confirms his worrying detachment from the realities of our country.
We desperately need to create jobs and reduce SA’s soaring unemployment, which have become our greatest threat to social stability. To do that we need investment. And to attract investment we need to provide a helpful and supportive environment for investors to commit their funds.
If our economy was liberated from the constraints of umpteen regulations (BEE and many others) and other priorities were resolved (logistics, crime) our economy would flourish and jobs aplenty would be created. That would bring about the true liberalisation of our economy and all South Africans.
Trevor Munday
Via email
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