[ad_1]
Finance Minister Tito Mboweni said South African companies, regardless of race, should receive state support with “bias towards emerging black businessmen,” as the impact of the coronavirus continues to affect the country’s economy, which is already in difficulties.
Mboweni answered questions Tuesday during an online briefing to Parliament about the National Treasury’s Annual Performance Plan and its Strategic Plan for the years 2020-2025.
The Treasury has projected that up to 7 million South Africans may lose their jobs in the worst case as a result of the blockade imposed to stop the spread of the virus, which will catapult SA’s unemployment rate to more than 50%. SA Revenue Service Commissioner Edward Kieswetter said at the same meeting that a SA is facing losses of up to R285 billion in tax revenue this year as a result of a sharp decline in economic activity.
‘Very irritating’
The finance minister said the race issue was a “very irritating question,” giving the example of the Magoebaskloof Hotel near where he lives in Limpopo, which has a white owner but whose staff is overwhelmingly black.
“I think we should support all companies, in black and white, as long as they can remain viable, support our people and create jobs. Let’s continue to build this non-racial South Africa.”
Mboweni added that “there will always be a bias [in state aid] towards emerging black entrepreneurs because they were discriminated against for a long time. “
“But let’s unite and build a South Africa of our dreams: non-racial, non-sexist, democratic and prosperous.”
Last week, the Solidarity union and its civil rights associate, AfriForum, lost a case in the Northern Superior Court of Gauteng to declare illegal the criteria based on empowerment for the allocation of aid funds in the affected tourism sector because of the pandemic.
The union has said it will request the Constitutional Court to hear the matter.
