Johnathan Paoli
President Cyril Ramaphosa has praised the role of the Black Business Council (BBC) in expanding the growth and development of Black-owned and run businesses in the country, and said that he looked forward to the government’s plans for the future.
President Ramaphosa delivered a keynote address at the annual BBC Summit Dinner in Kempton Park on Tuesday and praised the council for its role in lobbying the government on policy-related matters and advocating for the accelerated participation of Black business in the mainstream economy.
“Black business has been a valued partner along this journey and I have no doubt will continue to be so for time to come. We salute you for your solidarity, your positive, cooperative spirit with us as government, and above all for your patriotism,” the President said.
Ramaphosa said the relationship between the government and the BBC has deepened since the 6th administration took office in 2019 and called on all of society to mobilise resources and capabilities in order to facilitate economic growth and opportunity in the country.
The President thanked the leadership of the council for its support, and said that he believed the support of the BBC could be counted on for the incoming administration after the national elections in May.
Ramaphosa confirmed that since 1994, the number of South Africans has increased to 16.7 million in 2023 and that Black Economic Empowerment Commission reported that Black ownership of firms in the country had grown from negligible levels at the dawn of democracy to approximately 30% of reporting firms today, with Black women ownership averaging at 14%.
“Our economy, despite its present challenges, has opened the doors of opportunity for millions of Black South Africans and for Black business,” he said.
He also praised the Black Industrialists Programme which was launched in 2016, with an initial target of support for 100 Black industrialists having grown to over 1700 Black-owned and managed firms across all sectors of the economy in 2024 and said the government hosted the Second Black Industrialist and Exporters Conference last month, which brought together more than 1 200 black-owned businesses.
“These firms have a combined R330 billion annual turnover, measured in their operations and that of their core suppliers. They support over 282000 direct and indirect jobs,” Ramaphosa said.
Ramaphosa confirmed that R261 billion in pledges was secured at the Black Industrialists Conference, in order to purchase from over 230 Black-owned firms of period from 1 to 5 years through private sector procuring entities in retail, automotive, metal fabrication, food and agriculture, ICT, the financial sector amongst others.
About R11.8 billion in pledges were made by 18 Black industrialists to procure goods and services from 55 Black industrialists in turn, and that more pledges were being made at the annual South African Investment Conference.
He identified the crises in the energy sector, in logistics and in critical infrastructure as key to the viability of businesses, and said the scourge of unemployment threatened to roll-back hard won gains under democracy.
The President described the potential of the Africa Continental Free Trade Area (AfCFTA) for exports and said that an ambitious target for expanding trade has been set for the next five years.
“This strategic initiative will form the cornerstone of our efforts to deepen economic integration and maximize the benefits of regional trade,” he said.
Ramaphosa highlighted the manner in which green industrialisation is an area of opportunity for Black business, and said that the government was prioritising the production of electric vehicles, green hydrogen and the processing of critical minerals essential for the battery value chain.
This follows the announcement in February of a comprehensive set of incentives designed to spur investment in critical sectors and which will be rolled out over a ten-year period.
“These incentives will stimulate innovation, attract private capital, and accelerate the adoption of green technologies, ensuring a just and equitable transition towards a sustainable future,” the president said.
Ramaphosa concluded by reiterating his optimism for the future and called on everyone to continue to work together on the journey towards a fully transformed economy with no one being left behind.
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