Mboweni says state should support all businesses if viable, irrespective of race

Finance Minister Tito Mboweni has said that South African businesses, regardless of race, should receive state support with “bias towards emerging black business people” as the impact of coronavirus continues to batter the country’s already-struggling economy. 

Mboweni was on Tuesday answering questions during an online briefing to Parliament on National Treasury’s Annual Performance Plan and its Strategic Plan for the years 2020-2025. 

Treasury has projected that up to 7 million South Africans may lose their jobs in its worst case scenario as a result of the lockdown imposed to stem the spread of the virus, which will catapult SA’s unemployment rate to well above 50%. The commissioner of the SA Revenue Service, Edward Kieswetter, told the same meeting that a SA faces of loss of up to R285 billion in tax revenues this year as a result of a steep decline in economic activity.  

‘Very vexing’

The finance minster said the question of race was a “very vexing question,” giving the example of the Magoebaskloof Hotel close to where he lives in Limpopo, which has a white owner but whose staff is overwhelmingly black. 

“I think we need to support all enterprises, black and white, as long as they are able to remain viable, support our people and create jobs. Let’s continue to build this non racial South Africa”. 

Infrared Thermometers

Mboweni added that there would “always be a bias [in state aid] towards emerging black business people because they were discriminated against for a long time.”https://tpc.googlesyndication.com/safeframe/1-0-37/html/container.html

“But let’s pull together and build a South Africa of our dreams – non-racial, non sexist, democratic and prosperous.”

Last week trade union Solidarity and its civil rights associate, AfriForum, lost a case in the the North Gauteng High Court to have the empowerment-based criteria for the allocation of relief funds in the tourism sector affected by the pandemic declared unlawful.

The trade union has said it will apply to the Constitutional Court to hear the matter. 

First Published by FIN24

One thought on “Mboweni says state should support all businesses if viable, irrespective of race”

  1. Its very simple if you discriminate against whites this country will go the same way as Zim and some businesses will now make sure that blacks are not hired anymore do not push the whites to far without them this country would have lost everything already the ANC is nothing else than a useless communist organisation and has nothing to show after 25 years in power except corruption and a continious downturn of the economy


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s