Hollow power
AFTER knuckling down for five months, the Johannesburg Stock Exchange has made public a report that reminds us that all black South Africans have attained so far is political, not economic power.
The findings chillingly reveal that black South Africans own a paltry 18percent of the JSE-listed top 100 companies. While black ownership composition of the exchange is largely seen as a barometer of the country's economic progress and transformation, those of a darker hue haven't really stepped up to the plate.
The study by a reputable BBBEE consulting firm, and sanctioned by the JSE, is credited for its rigorous methodology.
The JSE says it has, through the years, gone out of its way to woo black investors to transact on it through a myriad initiatives.
But does the meagre percentage of the black presence in the JSE not serve as an indictment on us, reminding us how we've only been interested in chanting political slogans, instead of amassing wealth?
Sageville
I'm curious (please excuse my ignorance), with this JSE indicator in mind, is the BBBEE goal to force already listed white business owners to hand over the keys to blacks or is it's aim to make it easier for small black businesses to become big black businesses that can get listed on the JSE or are we just looking at the transformation level of the big business board of directors.Is that an oversimplification?
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oilthieves
problem80% own 18% of the companies (20% of the land)
black empowerment is concentrated in small companies
assumption
only when the poor are smarter than the rich, will they get out of poverty
solution
1. give each black south african who don't own shares - 50 free shares in 1 jse company
they can sell 5 shares after every 10 years. - this is compensation from those who profited from institutionalised racism and never compensated their victims. crime does not pay in the new civilised south africa
2. create a formula e.g. x.tax + y.fines = 1/ z. black co.s market share of an industrial sector.
so when black co.s own over 50% of the market share - white owned companies are just solvent; if blacks own less white companies become insolvent, if blacks own more(than 50%), white companies make bigger profits.
3. set targets e.g. 2011 40% black ownership of jse, 2012 45% jse 2013 50% jse - each time the jse fails to mee a target, 1industrial sector is nationalised. ideallythe sector most resistant to fairness.
n.b. the faster the government implements these solutions - the more credible the democracy in south africa
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