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Cape Town – It’s a misconception that the South African economy and the financial sector will go “belly up” if regulation is being tinkered with, said Danisa Baloyi from the Black Business Council (BBC) in Parliament on Tuesday.
The BBC was one of a number of stakeholders, which made representations to Parliament’s finance and trade and industry committees on transformation in the financial sector.
“We as the BBC believe that we can still transform the sector and manage to be inclusive and make the money that is to be made,” Baloyi said.
She pleaded with the financial institutions present at the public hearings to “deploy their cash” to stimulate the growth of the economy.
“I would like to say it’s possible for the financial institutions to create a change in this country. We believe by doing that you’ll create new wealth and new players. Unless we do that, there will be upheaval in this country that you won’t be able to stop.”
She continued, saying that she heard about “billions of rand” being “flashed” by financial institutions. “That money is supposed to be deployed to build black businesses in this country. If that was indeed the case we wouldn’t have been sitting here,” Baloyi said.
Continuing the BBC’s submission, George Sebulela, secretary general, had a number of suggestions as to how the financial services sector could be transformed.
“All new insurance licence holders must have minimum black ownership of 51% and have a set-aside of up to 35% of black entrepreneurs as a condition of licencing,” Sebulela said.
He further said black economic empowerment (BEE) ownership should be a prerequisite before companies are allowed to list on the JSE. “And when companies report on the JSE we should know the true nature of their BEE compliance.”
Sebulela continued, saying he was disappointed that none of the banks that made representations at the public hearings said anything about how they intend to assist black industrialists.
“There was no discussion about what role the financial sector was going to play in this programme.”
The BBC was one of a number of stakeholders, which made representations to Parliament’s finance and trade and industry committees on transformation in the financial sector.
“We as the BBC believe that we can still transform the sector and manage to be inclusive and make the money that is to be made,” Baloyi said.
She pleaded with the financial institutions present at the public hearings to “deploy their cash” to stimulate the growth of the economy.
“I would like to say it’s possible for the financial institutions to create a change in this country. We believe by doing that you’ll create new wealth and new players. Unless we do that, there will be upheaval in this country that you won’t be able to stop.”
She continued, saying that she heard about “billions of rand” being “flashed” by financial institutions. “That money is supposed to be deployed to build black businesses in this country. If that was indeed the case we wouldn’t have been sitting here,” Baloyi said.
Continuing the BBC’s submission, George Sebulela, secretary general, had a number of suggestions as to how the financial services sector could be transformed.
“All new insurance licence holders must have minimum black ownership of 51% and have a set-aside of up to 35% of black entrepreneurs as a condition of licencing,” Sebulela said.
He further said black economic empowerment (BEE) ownership should be a prerequisite before companies are allowed to list on the JSE. “And when companies report on the JSE we should know the true nature of their BEE compliance.”
Sebulela continued, saying he was disappointed that none of the banks that made representations at the public hearings said anything about how they intend to assist black industrialists.
“There was no discussion about what role the financial sector was going to play in this programme.”
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