Ministers and Deputy Ministers,
Members of the B-BBEE Advisory Council
Senior Government Officials present,

We meet at a time when our economy is facing tough headwinds due to slow growth in the global economy. The slump in demand for commodities in particular has had a negative impact on the economy, with the mining sector carrying the brunt of weak demand. Accompanying the slow growth of the economy has been an increase in unemployment.

So these are tough times for our economy and our people. But there are signs that if we do important things right we stand a chance to turn around the economy and create jobs and business opportunities for our people. As you may be aware, Moody’s, one of the ratings agencies maintained South Africa’s investment rating, albeit with a negative outlook. Moody’s observed that our economy appears to be close to turning the corner and will start growing. Standard and Poor’s, another ratings agency, is likely to make a public announcement this week on our investment rating.

What has been remarkable in the past few months has been the close partnership and collaboration demonstrated by government, labour and business in taking collective measures to turn around the economy and prevent a ratings downgrade.

I am convinced that if we maintain this spirit of unity and partnership we will overcome our immediate challenges and make this economy grow again.

As government, business and labour work together to reignite economic growth, it is important that the goal of black economic empowerment be not forgotten so that we can effectively move forward in transforming and de-racialising the economy.

As we have said before, political freedom without economic freedom is incomplete.

The significance of inclusive growth was brought into sharp focus when I met with black professionals at the beginning of this year here in Pretoria.

What was remarkable about that meeting was that they raised similar issues for which the B-BBEE Advisory Council was established in the first place. Following the meeting with black professionals I have decided to establish a Presidential Working Group to serve as a forum to ensure the issues affecting black professionals are attended to.

The Presidential B-BBEE Advisory Council should be able to interface with and find areas of convergence with the Black Professionals Working Group. In fact, we envisage that many of the issues raised by the Black Professionals Working Group will find a home in the BEE Advisory Council at an implementation level.

This will help us to ensure that issues raised by black professionals are attended to, and that decisions and recommendations are implemented and taken forward.

The Department of Trade and Industry is the secretariat of the Black Professionals Working Group as well, which makes it easier to ensure synergy between the two structures as they are located administratively in the same department.

The professionals represented in the Black Professionals Working Group include accountants, managers property practitioners, lawyers, actuaries, and many others.

I am glad that today’s meeting will discuss progress that is being made in implementing the Black Industrialist Programme. This is a very important matter.

Creating a class of black industrialists and entrepreneurs lies at the heart of the transformation of the economy.

It is however critical that we go about black economic empowerment the right way.

The practice of fronting does not advance economic transformation; rather, it seeks to subvert it. I am therefore pleased that we are dealing with this matter.  The establishment of the BEE Commission is significant because one of its principal objectives is to eradicate the scourge of fronting. 

Once again, let me welcome you all to this meeting. I hope we will have fruitful discussions.

I thank you.