Category Archives: Business & Economy

ANC’s big lie about electricity in South Africa

A new report reveals how the ANC government forbade Eskom from building new power stations while South Africa was running out of electricityelec-pylons-2

The South African Institute of Race Relations (IRR) has released a new report, titled: “The rise and fall of Eskom – and how to fix it now”.

How many black South Africans benefit from BEE

The current system of Black Economic Empowerment (BEE) only benefits a small elite, and will leave the majority of black South Africans out in the cold if an alternative is not found.

Employment Application

Employment Application

This is according to Dr Anthea Jeffery, Head of Policy Research at the Institute of Race Relations (IRR), who has called for an end to the ‘extortion’ of the BEE system.
Last week (20 July), Western Cape Premier Helen Zille spoke out against new Draft Preferential Procurement Regulations, which would see government pay a large premium on all procurement less than R10 million, in favour of BEE companies.
 
In a column on Politcsweb, Jeffery said that BEE benefits approximately 15% of the black population, with “a small group of beneficiaries having their way at the cost of the many”.
 
“BEE is a key reason why economic growth in South Africa lags so far behind other emerging countries.”
 
The remaining 85% have very little prospect of ever gaining BEE ownership deals, management posts, preferential tenders, or new small businesses to run, she said.
 
“Worse still, BEE does not simply bypass the 85% majority. Instead, it actively harms that 85% by reducing investment, growth, and jobs and making it very much harder for the poor to climb the economic ladder to success.”
 
The black African population is in the majority (44.23 million) and constitutes approximately 80% of the total South African population, according to StatsSA.
 
According to Jeffery, the indirect expropriation of existing firms through the 51% BEE deals – which is now increasingly required under empowerment rules – will ultimately do nothing to help unemployment, if no alternative is found.
 
“The immediate consequence of indirect expropriation under the rubric of BEE will be to deter direct investment, reduce our already meagre growth rate, and make it harder still for some 8.7 million unemployed South Africans (up from 3.7 million in 1994) to find jobs.” Jeffery said.
 
“The more this indirect expropriation is sanctioned and applauded, the more state powers of this kind will expand.”
 
“The real challenge is to open up real opportunities for all disadvantaged black South Africans. This cannot be done while BEE puts ever heavier leg irons on the economy.”
 
BEE: is it working?
 
BEE was launched in 2003, to redress the inequalities of Apartheid by giving certain previously disadvantaged groups of South African citizens economic privileges previously not available to them.
 
In October 2014, ANC deputy president Cyril Ramaphosa said that BEE benefits everyone and is necessary to build a prosperous, sustainable and equitable society.
 
However, data from research groups has shown that, while there has been an increase in wealthy black Africans since 2007 (113% increase to 4,900 individuals with a net worth over $1 million) – the black African population has shown the smallest growth in wealth out of all previously disadvantaged groups.
 
In March 2015, research found that black South Africans hold at least 23% of the Top 100 companies listed on the Johannesburg Stock Exchange as at the end of 2013.
 
The shares held by black investors include 10% held directly (largely through BEE schemes) and 13% through mandated investment – mostly through individuals contributing to pension funds, unit trusts and life policies.
 
An Intellidex study has shown that empowerment deals and schemes done by the JSE’s 100 largest companies have collectively generated R317-billion of value for beneficiaries – R108-billion of which has been generated by BEE deals, alone.

Watch: Stefan Molyneux – Facts on the current state of South Africa

The mere mention of South Africa in a discussion provokes deep images of institutional racism, discrimination and horrific violence.

Stefan Molyneux

Stefan Molyneux

Fewer people think SA is still on right path

Seventy-six percent of people in SA used to feel the country was going in the right direction from the early years after 1994, but now just 42% think so.

Jeff THAMSANQA RADEBE Photo - African Success

Jeff THAMSANQA RADEBE
Photo – African Success

THIS WEEK’S GUEST: TREVOR LOUDON, Author / Researcher / Activist

THE TRUTH ABOUT SOUTH AFRICA  –  Hosted by BRENDI RICHARDS

THIS WEEK’S GUEST:   TREVOR LOUDON, Author / Researcher / Activist

Trevor Loudon

Trevor Loudon

Eskom needs tariff increase because load shedding is expensive: CEO

Eskom is asking for an increase in tariffs because it wants to deal with the problem of load shedding, acting Eskom CEO Brian Molefe said

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“We are just asking for money to deal with the issue of load shedding,” he told a National Energy Regulator of SA panel in Johannesburg.

Plan launched for worst case blackout scenario

While Eskom is insistent that a total blackout is out of the question, a concerned group has launched a basic emergency guide to living in the dark.

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The plan offers practical tips on how households can prepare for the eventuality of being without Eskom electricity for up to two weeks, the period it would take for Eskom to turn the lights back on if there was a total blackout.

Govt could face criminal charges over al-Bashir fiasco

Pretoria high court wants the public prosecutor to investigate if the government broke the law in allowing Sudan President Omar al-Bashir to leave SA.

Sudanese President Omar al-Bashir left South Africa despite a high court order prohibiting his departure. (AFP)

Sudanese President Omar al-Bashir left South Africa despite a high court order prohibiting his departure. (AFP)

Stop moaning about apartheid and lift yourself up

WE CANNOT afford to simply whinge about apartheid and hope this will lead to economic transformation. An insatiable appetite for knowledge and skills is what will change the country for the better. This is what was on my mind as I imbibed the work of historian David Killingray at the British Library, in London, at the weekend.
Thabo Mbeki. SUNDAY TIMES

Thabo Mbeki. SUNDAY TIMES

Zuma’s salary increase approved

President Jacob Zuma’s salary increase has been approved, even after opposition parties fought against it, EWN reports.

President Jacob Zuma. (GCIS)

President Jacob Zuma. (GCIS)

In January, the Independent Commission on the Remuneration of Public Office Bearers recommended a 5% increase for all office bearers, including the president, deputy president, ministers, deputy ministers and members of parliament, and came before the National Assembly on Thursday for approval.