The recent announcement by the South African subsidiary of Coca-Colade to cede part of the capital to its employees is welcomed by the government. But overall, the record of positive discrimination policies that are supposed to promote the participation of blacks, meteis and Indian communities in addressing economic inequalities is still far from perfect.
From our correspondent in Johannesburg,
As of May, the approximately 8,000 employees in the local Coca-Cola branch responsible for bottling will own a 15% stake in the company, up from 5% so far. What should transform the economy a little more, according to Trade Minister Ebrahim Patel.
“If we add the shares of employees and external investors, this represents a participation of black communities of 20% in the company. It is a remarkable effort to try to build a more inclusive economy, ”said the Minister of Trade. The employees will also have two seats on the board. And the company is committed to favoring more local suppliers. These terms were part of a merger agreement signed in 2016.
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For researcher Ayabonga Cawe, this is a step in the right direction. “This decision is welcome, for all that it entails in terms of redistribution of profits, dividends and working capital, while South Africa is one of the most unequal countries in the world. However, once this is in place, it will be necessary to examine the details of this redistribution beyond the simple announcement. “
Still too little capital in the possession of blacks, metis and Indian societies
Affirmative policies in favor of blacks, metis and Indian societies have evolved since their inception. But today, according to official statistics, less than 30% of corporate capital is owned by these populations, who regret Kganki Matabane, headed by Black Business Council, which brings together black entrepreneurs: “We are in 2021, and if you look at who owns the country’s economy, of course there has been some progress, but it is extremely slow. But here, unlike other countries, it is about giving economic power back to the majority. And if we continue at the current pace, one day we may end up losing patience. “
And for economist Duma Gqubule, the economic downturn should not help with redistribution: “These economic liberation policies were successful as our economy grew between 2004 and 2008. But over the last ten years, we have seen a decline in GDP per capita. Inhabitant, and it has been a lost decade for these policies. I think it would be necessary to get them to develop again and change the compromises that were established with mines, banks or insurance companies, ”he said.
Another sector may soon be a concern: the telecommunications authority wants 30% of corporate capital to be in the hands of black investors, causing the smallest structures to shrink.
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