Plan for future black industrialists

BOSSES of big business were missing from the conference aimed at creating black industrialists, despite its key role in the government's plan to develop a formidable black manufacturing sector.

State-owned enterprises and government departments are also expected to back the black industrialists.

Veteran businesswoman Dr Anna Mokgokong said there was a "resentment towards black success and upliftment".

"Corporate SA likes to see us stay the way we have been before and there is no will to embrace us [black people], and it is going to be difficult for us to burrow our way through," she said.

She said the indaba would help by finding ways to fast-track initiatives to support business.

"The conference will assist us to fast-track decision making and funding, which is the biggest problem."

Mokgokong accused established businesses of "wanting to defend and protect, and not wanting to let go and let others in".

"Corporate SA is totally a boys club," she said, adding that there were still too few black chief executives and chairmen.

Mokgokong, a nonexecutive director at the Shoprite Group, said bosses of retail giants would not attend the conference.

"They won't come here and why would they? They don't have to and they don't need to, they are made. And that is corporate SA and why should they let others in?" she asked.

Mokgokong said black people could only force corporate SA to participate in economic transformation through the creation of black industries.

"When we have our own industries they will want business from us. But if you have nothing to offer and you're begging, you're going to be left out."

However, Mzwandile Masina, the deputy minister of trade and industry, said yesterday that it was not necessary to have corporate bosses at the Black Industrialist Indaba.

"Right now we are focusing on policy and we didn't want them [big business] to shape and influence the direction [of the policy], as this is what we are taking to cabinet after [the indaba]," Masina told Sowetan at the conference in Midrand organised by the department.

"We are crafting a policy and it [the indaba] is not about market access. We have our own developmental financial institutions and state-owned entities but at the time we want markets from those people, we will then create that environment where big business will meet with black industrialists."

The black industrialist concept was conceived in 2012. Black Business Council deputy president Sandile Zungu said it was not worrying that it was still at the policy development stage.

Zungu said corporate SA would only be consulted after the conference has decided how much established businesses should stock from black industrialists, adding that it was disappointing that only about 2% of their local expenditure was channelled towards black suppliers.

The department said last August that it would create 100 black industrialists in three years.

In his keynote address, President Jacob Zuma said the wording should be reworked to say "at least 100 black industrialists should be created in three years".

Masina said the target was still reachable.

"In our database we are looking at and assisting in various ways, financial and non-financial; we have no less than 40 applications we are considering.

"We will reach the target as soon as possible and we believe we are on course."

He said the department was working with developmental financial institutions and state-owned entities to create a financial support mechanism and markets for black industrialists.