Fixing apartheid-era policy distortion

IN 1994, South Africa inherited an economy that was structurally designed to exclude the vast majority of South Africans. Apartheid's distorted policies had created a dual economy: one of wealth and privilege and another of poverty and exclusion.

- PARKS TAU

This calculated economic strategy, structured along racial lines, created white-owned mines, farms, and factories. At the same time, many black South Africans languished on the fringes of the economy in an underdeveloped informal sector.

Their meaningful participation in our nation's wealth was further eroded by discriminatory laws that restricted Black South Africans from owning land, accessing quality education, and entering skilled professions.

These economic distortions, which were implemented over hundreds of years, continue to plague our nation today as we grapple with one of the highest levels of economic inequality in the world, worsened by alarmingly high unemployment, especially among Black youth.

The country’s Gini coefficient of 0.63 shows that our nation’s income remains unevenly distributed, with the top 10% of the population holding more than 85% of household wealth. This persistent disparity undermines the development of an inclusive economy where all citizens participate and benefit.

The transformation we seek is about positive change and is the only logical path to long-term growth and the reduction of inequality. In deracialising ownership across our economy, we open more opportunities for black people, in particular women and the youth.

While the Constitution guides our work in creating a society with equal opportunities, we require a deliberate removal of structural obstacles to draw more people into the economy and mechanisms that advance our constitutional commitment to economic redress and transformation.