Business
South Africa: Ruling ANC proposes economic empowerment legislation ahead of May 7 vote
South African lawmakers are in the process of enacting legislation that will seek to increase the involvement of black citizens and women in the economy.
With opinion polls indicating the ruling African National Congress (ANC), which holds almost two-thirds of the seats in the country’s National Assembly, will see its support drop in the May 7 election, the party is seeking to expand the state’s role in the economy and spread more wealth to black citizens. Among the laws awaiting President Jacob Zuma’s signature are those that give the state the right to a free stake in all new energy ventures and forcing private security companies to be at least 51 percent owned by locals.
There is however the expected push-back from the private sector – which insists that the proposed legislation would stifle economic growth, job creation and investment.
Other recently adopted or proposed legislative changes include: extending the deadline to 2018 from 1998 for claims to be lodged on land seized under the brutal and racist apartheid rule; requiring company boards to comprise of 50 percent women; tripling the fines for companies failing to meet racial employment targets; and tightening the criteria needed to secure contracts with the state.
A recent survey of 9,019 people conducted by polling company C-Voter shows the ANC may win 62 percent of the vote, the Economic Freedom Fighters, which was formed last year by former ANC Youth League President Julius Malema which seeks to nationalize mines and expropriate land to give to the poor, may win 6 percent of the vote.
In 2009, the ANC won 65.9 percent of the ballots, compared with 16.7 percent for its nearest rival, the Democratic Alliance.
The South African economy is on the rebound, however, growth is still not fast enough to cut unemployment. The central bank is forecasting expansion of 2.6 percent this year, which is less than half the annual pace of 5.4 percent the government says is needed to cut the jobless rate to 6 percent by 2030 from 24 percent currently.
