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BBC Calls For More Black Economic Ownership

The Black Business Council (BBC) held its annual summit recently, demanding for government to speed up economic transformation for businesses.

President of the Black Business Council, Sandile Zungu wants government to pay more attention to implementing policies that encourage more black people to be economically active. 

"We must target that by 2030, which is 9 years from now, at least 70% of the economy of this country must be visibly in black hands. The management of the economy, not just at the level of boards of directors but also at senior level but also at senior management level must be reflective of the demographics of this country." Zungu said. 

Tourism Minister, Mmamoloko Kubayi-Ngubane, said the Economic Reconstruction and Recovery plan (ERRP) is just one of the ways that government has been tackling the social impact of Covid-19 on businesses. 

“As a country, we have responded to the economic disruption through the development and adoption of what President Ramaphosa called 'extraordinary measures' we must take to restore our economy to inclusive growth following the devastation caused by COVID-19 to our people’s lives and our country’s economy,” Kubayi-Ngubane said.

The Minister stressed the importance of transformation and the role it plays in economic growth.

"Our economy will only experience sustainable and inclusive growth if in its quest to grow the economy and pursue more profit it draws from the entrepreneurial spirit that exists within South Africans of all races."

However, Kubayi-Ngubane remains concerned about the tourism department and the difficulties it has faced because of Covid-19. 

The industry has been struggling to recover and retain jobs, despite the easing of lockdown restrictions. 

In 2020, the tourism industry faced a 72.6% decrease in tourists, as the numbers went from 10.2 million in 2019 to 2.8 million in 2020.

“The decline in the number of international arrivals led to the decrease in income from accommodation by 35.9% year-on-year in March 2021.

“However, after embarking on a road to recovery in partnership with the private sector, we saw a surge in numbers of domestic travellers over Easter which translated into an income increase of 37.6% from accommodation month-on-month in March 2021.

“This is one of the areas identified by the Tourism Sector Recovery Plan which was developed in partnership between government and private sector. The green shoots that we saw in the tourism sector were a clear indication that if we work together as social partners, we can get our economy back on the growth trajectory,” Kubayi-Ngubane said.

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