Pretoria - Racism still prevails in the private sector, with some companies monopolising the infrastructure, says Public Enterprises Minister Malusi Gigaba.
"Another consideration is whether the private sector can be trusted to have the intrinsic interest of transformation at heart such as in our case, where racism still prevails, particularly in business and you have a few established companies monopolising the infrastructure," said Gigaba.
The minister was speaking at the second day of the Black Business Summit on Wednesday.
Gigaba said it was clear that high unemployment and skewed income distribution was unsustainable.
"Many private sector business leaders know there is a problem that business cannot flourish in a politically and socially unstable context."
He said the sector was aware that if it did not contribute to job creation and economic development in a more concerted manner, there would be no future for their enterprises.
"The question is how can government and business find one another and forge a meaningful compact to invest aggressively in all the right areas to grow our productive capabilities and increase employment."
The minister called on black business to make a contribution to uplift those who were economically excluded.
"What is clear is that private enterprise in South Africa is in desperate need of fresh leadership, and this is what government expects of you, the black business leaders of South Africa, to provide."
The minister said a lot of effort was required in order to bring about economic transformation.
On the question of whether state owned companies should be privatised due to assumptions that they were inherently inefficient and corrupt, the minister said: "Is there anything intrinsic in the private sector that makes it more efficient and competent or [poised] differently? Is there anything in the public sector that makes it intrinsically antithetical to all of this?" - BuaNews
