JSE change imperative, says Busa

Johannesburg - Business Unity SA CEO Jerry Vilakazi has warned that the country could be headed towards more state intervention of businesses fail to implement transformation policy vigorously and quickly.

"If we don't move fast, people will call for .... nationalisation. You don't want people to forcibly take over hwat they feel has been denied them," Vilakazi said.

He was reacting to this week's research by the JSE that showed black investors owed 8% of the bourse's Top 100 companies.

The research surveyed 100 companies representing 85% of the JSE's market capitalisation, which stands at R5.7 trillion.

Restricting ownership of the JSE to South Africans shows that they own 44%. Of this figure, black ownership rises to 18%.

The study confirmed what many black economic empowerment (BEE) observers have been lamenting for a while - the slow pace of participation by blacks in the South African economy.

Earlier this year, BEE ratings agency Empowerdex said debt-free or unencumbered black direct ownership of JSE-companies was a meagre 1.6%.

The agency also found that JSE black direct ownership was 6.87%, a figure that is in line with the JSE report.

Tsakani Matshazi, the president of the Advancement of Black Accountants Southern Africa, said the JSE report had failed to take into account that a big chunk of the 8% black direct ownership was saddled by debt.

"The debt associated with most BEE shareholding structures is often fairly high. In fact, the unencumbered portion is likely to be closer to what Empowerdex indicated earlier this year," she said.

Matshazi and Vilakazi are part of the 19-member BEE advisory council, which advises President Jacob Zuma on the implementation of empowerment.

JSE CEO Russell Loubser believes the research has enriched the debate.

"There has been much discussion about black ownership on the JSE. Various and quite divergent numbers have been mentioned.

"With the JSE's unparalleled access to share data, we wanted to enrich the debate through presenting the facts in an impartial manner," he says.

Vilakazi's warning comes as the ANC prepares for its crucial national general meeting, which kicks off in Durban on September 20.

At the meeting, the ruling party is expected to debate the nationalisation of mines, which the ANC Youth League is advancing.

The league argues that BEE in the mining sector has enriched a few blacks and failed to spread benefits to the poor majority.

 - City Press