Instead of working together to realise the objective of economic transformation, main actors have been devoting their efforts to blaming each other and finger-pointing for not meeting the reasonable expectations of black South Africans. And the result has been a stalemate. The Managing Director of Banking Association South Africa, Bongiwe Kunene, observes this in the Executive Report of the 2020 Banking Sector’s Transformation Report.
“Government claims business does not willingly embrace transformation. Business claims government is stalling the necessary economic reforms while labour makes unaffordable and unsustainable demands that increasingly serve only the interests of union members,” he bemoans.
In a such an tense environment, having a rational discussion about transformation has become almost impossible. As a result, there has been a stalemate on key issues, mainly – negotiations at the National Economic Development and Labour Council (Nedlac) on the rules to govern the Black Business Growth Fund and a review of the FSC.
Negotiations on Black Business Growth Fund, which is to contribute to job creation as envisaged in the Job Summit Framework Agreement, have been difficult.
Similarly, a review of the FSC, which was meant to take place in 2018, is yet to be concluded because of lack of agreement on key issues in the Financial Sector Transformation Council.
“The legislative framework governing transformation has been subject to numerous attacks in and out of courts. Some of the court actions have been a result of different interpretation of the laws,” Kunene notes.
Moroever, in some cases authorities have been making demands on regulated entities that go beyond what the law requires.
In general, instead of the spirit of co-creation and problem solving in the interests of all, there has been a hardening of attitudes and a loss of trust all around – such is the nature of the politics of transformation and empowerment in our country.
As the situation persists, meanwhile, the majority of South Africans are running out of patience and the legitimacy of those charged with negotiating is fast being eroded, Kunene fears.
