Institutional investors came under sharp criticism at the annual Black Business Summit for failing to channel capital into activities that create jobs and stimulate industrial development in predominantly black communities.
Speaking at the summit hosted by the Black Business Council (BBC), veteran business leader Irene Charnley said South Africa’s political power had not translated into meaningful economic ownership for black people.
While acknowledging that black South Africans wield considerable influence through the ballot box, Charnley argued that they remain largely excluded from ownership and decision-making within the economy.
“Do you own the economy? No. Have you got an input in the economy? No,” she said.
According to Charnley, the country already has the industrial infrastructure needed to support growth, but the challenge lies in leveraging technology and innovation to create new industries and improve productivity.
Pension funds under the spotlight
Charnley dismissed the notion that South Africa faces a shortage of investment capital, arguing instead that the country’s financial resources are concentrated in the hands of institutions that are not prioritising economic transformation.
She pointed to major pension funds, including those linked to Eskom, the Government Employees Pension Fund (GEPF) and other state-owned entities, saying the funds have the potential to play a far greater role in supporting industrial development.
“The capital is there. It is just that the wrong people are controlling it,” she said.
Charnley questioned why a portion of these funds was not being directed toward projects that could generate employment and build black-owned businesses.
“They don’t invest in economic activities that will create more jobs and result in black capital. Even 10% of that money should be redirected so that we have a country with industrial activity,” she said.
Government must create an enabling environment
Anglo American South Africa chairperson Nolitha Fakude said government had a critical role to play in creating conditions that support business growth while ensuring companies comply with transformation commitments.
Fakude said organisations such as the BBC needed to actively participate in policy debates and hold both government and business accountable for implementation.
“In business, if you don’t measure it, it is not going to be done,” she said.
She argued that the government had been distracted from transformation issues for more than a decade and was now trying to make up for lost ground.
“The consistent voice of black business needs to come through, and sadly it’s not coming through the way it’s meant to be,” she said.
Call for greater unity among black business
Fakude also expressed concern about divisions within the black business community, warning that a lack of alignment on key priorities had weakened efforts to drive meaningful transformation.
She said this had allowed established businesses to avoid accountability in areas where progress should have been faster.
“So we have let formal business get away with things that they should not be doing,” she said.
According to Fakude, the absence of a united and influential voice from black business has reduced its ability to influence policy and corporate behaviour.
Tackling the culture of gatekeeping
Fakude further highlighted what she described as a culture of gatekeeping within established institutions, saying many of those controlling procurement, supplier development and skills development budgets were themselves black professionals.
She argued that excessive bureaucracy and a lack of trust in black entrepreneurs often prevent small businesses from accessing relatively modest funding.
“There are people sitting on budgets for procurement, supplier development and skills development, and in most instances they are black people and women,” she said.
Fakude said entrepreneurs seeking as little as R50 000 frequently face numerous regulatory and compliance hurdles, despite decision-makers controlling budgets worth hundreds of millions of rand.
“The cancer of corruption and the cancer of not trusting each other’s competence as black people have caused us to have a situation where people who should be opening the door are not doing so,” she said.
Her remarks underscored growing frustration among black business leaders over the pace of transformation and the need for both government and financial institutions to play a more active role in fostering inclusive economic growth.
- Institutional investors were criticized at the Black Business Summit for not investing capital into job-creating activities and industrial development in predominantly black communities.
- Irene Charnley stated that political power has not led to meaningful economic ownership or decision-making influence for black South Africans.
- Major pension funds, including those linked to Eskom and the Government Employees Pension Fund, have capital but are not prioritizing economic transformation or supporting black-owned businesses.
- Anglo American South Africa chairperson Nolitha Fakude emphasized the government's role in creating a supportive business environment and the need for black business to have a united and influential voice.
- Fakude highlighted a culture of gatekeeping within institutions where black professionals controlling budgets often create bureaucratic hurdles that prevent small black entrepreneurs from accessing funding.
Institutional investors came under sharp criticism at the annual Black Business Summit for failing to channel capital into activities that create jobs and stimulate industrial development in predominantly black communities.
While acknowledging that black
"Do you own the economy? No. Have you got an input in the economy? No," she said.
Charnley dismissed the notion that
"
Charnley questioned why a portion of these funds was not being directed toward projects that could generate employment and build black-owned businesses.
"
Fakude said organisations such as the BBC needed to actively participate in policy debates and hold both government and business accountable for implementation.
"In business, if you don't measure it, it is not going to be done," she said.
"
Fakude also expressed concern about divisions within the black business community, warning that a lack of alignment on key priorities had weakened efforts to drive meaningful transformation.
"So we have let formal business get away with things that they should not be doing," she said.
Fakude further highlighted what she described as a culture of gatekeeping within established institutions, saying many of those controlling procurement, supplier development and skills development budgets were themselves black professionals.
"
Fakude said entrepreneurs seeking as little as R50 000 frequently face numerous regulatory and compliance hurdles, despite decision-makers controlling budgets worth hundreds of millions of rand.
"
Her remarks underscored growing frustration among black business leaders over the pace of transformation and the need for both government and financial institutions to play a more active role in fostering inclusive economic growth.
