
According to ANC spokesman Steyn Steed, 50bn rand in
assets have been transferred to the poor over the last 10
years, via the provision of housing subsidies and land
redistribution. But critics say empowerment has simply
resulted in wealth being taken from the hands of a few
white people and put into the hands of a few black people.
Oligarchs
There is growing resentment at the emergence of a new
elite, which includes former freedom fighters who have used their political connections to
accumulate huge wealth. "The elite has sometimes been doing rather well. We were looking
for something that was much more broad-based," says opposition Inkatha Freedom Party
economist Dr Gavin Woods. One of the richest men in South Africa today is Cyril Ramaphosa,
the former mining union leader and ANC general secretary.
After leaving politics in the mid-1990s, he made money by
investing in financial services, media companies, coal mining
and gold mines. Chairman of Mvelephanda Resources,
Tokyo Sexwale, who was imprisoned with Nelson Mandela,
has clinched some of the biggest deals this year. He heads
the Batho Bonke consortium which is about to receive
about 10% of the equity of South Africa's Absa bank.
Blacks 'getting poorer'
The wealth of these men would be more palatable to
people if their own living conditions were better. Indeed, the government has made significant
achievements in extending services to the poor. An additional 10 million people now have
access to fresh water, four million to electricity; 1.5 million new homes have been built, South
African officials say. But according to at least two recent surveys, blacks are getting poorer,
while whites are getting richer. "The general consensus is that there has not been an
improvement in equality," says World Bank economist advisor in South Africa, Matthew Stern.
"There is the view outside and inside the government that that BEE hasn't delivered."
Low skills level
Unemployment, which is runs at an official rate of 30%, is a chief concern, especially as it is
seen as contributing to the country's high crime rate. High jobless numbers are also the result
of the population's low skill base. The ANC has made training the workforce a priority. "Ninety
percent of South African children are in school. A supply of skilled labour is emerging," Lionel
October, deputy director general of the country's Department of Trade and Industry, says. But
at the moment, an estimated 250,000 vacancies cannot be filled because of lack of qualified
candidates. Since 2000, South African employers have had to contribute 1% of an employee's
The elite has sometimes
been doing rather well. We
were looking for something that
was much more broad
based
Dr Gavin Woods, Inkatha
Freedom Party
Tokyo Sexwale is part of the new
black elite