Oral replies by President Jacob Zuma in National Assembly, March 20 2013

6. Adv A de W Alberts (VF Plus) to ask the President of the Republic:†

In light of his visit to white squatter camps in Pretoria in 2009 and his promise to help them, why are measures such as (a) affirmative action and (b) Black Economic Empowerment that impoverishes white people still necessary when statistics indicate that more black people own property than white people do and that an equal number of black and white people own shares on the Johannesburg Stock Exchange?

REPLY:

Honourable Speaker,

Affirmative Action and Black Economic Empowerment are constitutional imperatives designed in terms of Section 9 of the Constitution to correct the inequality and exclusion faced mainly by Black people, namely Africans, Coloureds and Indians, as well as women and people with disabilities, which was caused by apartheid laws.

I disagree that the statistics on property ownership patterns and distribution of shares on the Johannesburg Stock Exchange, indicate that the historical injustices that are a legacy of Apartheid, have been overcome.

It is a fact that inequality in terms of race is still very much a part of South African society.

It is critical to draw a distinction between the ownership of assets or property by a few black people as compared to the majority that is still disadvantaged even after 19 years into democracy.

It is an undisputable fact that White compatriots still control the South African economy and disproportionately own most of the prime land in the country.
With regards to the management of the economy, the 2012 employment equity report indicated, that in the senior management category, white males comprise 59.1%.

Black people are the most under-represented in this category at 21.8%. The economy is therefore still controlled by white males.

Let us take the example the Honourable member raises regarding shares on the Johannesburg Stock Exchange.

In its report of 2012 the JSE indicated that while 21% of shares of ownership of the top 100 companies are held by black people, direct black ownership is less than 5%.

When one considers that according to the 2011 Census, Africans, Indians and Coloureds make up 90.6% of the population, these figures indicate serious under representation of black people. Africans make up 79.2%; Coloureds 8.9% and Indians 2.5%.

In relation to property ownership, the South African Property Sector Charter Council 2010 report, estimates that of the total four point nine trillion rand market capitalisation in the sector, three trillion rand falls within historically white residential areas, where the majority of these properties are still owned by white people.

With regards to the standard of living in general, Census 2011 revealed the shocking statistics that the income of the average white household still remains six times higher than that of the average African household.

Figures indicate that the average annual African household income is R60 613 while that of the white household is R365 164.

The Census also revealed that close to 1.9 million African households reported no income at all.

Obviously this state of affairs cannot be allowed to continue forever. I am therefore happy that you raised this matter Honourable Member, to remind the House of the urgent need to accelerate economic transformation.

The problem of poor whites is not new. The only difference is that government looks after all citizens equally while in the past there were special programmes and interventions to alleviate white poverty and reserve jobs for unskilled white citizens.

The poor whites you refer to in Pretoria West were linked with relevant government departments so that they can assist them with services required. What is important is the need for an acceptance that apartheid left a legacy of inequality and exclusion based on race, whose impact will take decades to completely undo.

The denialism that is often expressed will not take away this fact. We will continue working hard to reverse this legacy in order to build a truly non-racial, non-sexist, prosperous and equal society.

I thank you.

Issued by The Presidency, March 20 2013

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