I have recently been involved with advising a local business regarding the manufacture of a new product line in South Africa. The manufacture process is extremely complicated, technically very advanced and involved a large capital commitment. Part of this capital commitment would be funded by the current shareholder and the lion share by a Foreign investor. The balance required a loan from a financial institution. The nature of this investment was such that only one of the Government mandated institutions would be interested.
In the end the loan was not granted and the many jobs which would have been secured lost as a result of the Government requirements for a BEE shareholder. The foreigners laughed at the request and decided to set up the new operation offshore. There are countless similar examples and each example costs our country large amounts of employment and other opportunities which are drastically needed.
Having re-read George Orwell’s Animal farm recently I was struck by the absurdity of the current approach to empowering previously disadvantaged South Africans. I am also certain that we are living on the Animal farm written in the 1950’s.
With no government solution, or realistic plan, in sight I am of the opinion that until we “De-colourise” money we are going to fail to provide the opportunities for business to create employment and thus stimulate the recovery of our economy. South Africans need to accept that money was made “round to go round”, and if we want it to come round to us in South Africa we need to ensure that the Free market economy is adopted so that we can focus on creating employment opportunities to give all South Africans the dignity of a job.
