In the Western Cape these challenges are no less real. This is despite the fact that we have a higher economic growth rate of 2,9%, compared to the average national rate. Those who have historically been disadvantaged are not feeling the benefits of this higher growth rate.
This higher than the average growth rate is defied by the fact that this Province also had the highest gini - cofficient, that measure of the gap between the highest and lowest income earners, which show that the benefits of growth are not at all reaching the poor, who by and large are African and Coloured, Women, Youth and Disabled, Rural and Township.
The reality for the poor is defined by the fact that:
- 26% of the economically active population are unemployed
- Only 18% of people over the age of 20 have passed matric
- Only 10% have higher education and 21% have not even completed primary education.
To deal with the challenges posed by this scenario, we are going to have to embark on bold initiatives. The Department of Trade and Industry's strategy document on BEE notes that, Apartheid systematically and purposefully restricted the majority of South Africans from meaningful participation in the economy.
The document further notes "the impact of this systematic disempowerment not only resulted in a landless black majority with restricted access to skills development, but also deliberately prohibited black people from generating self-employment and entrepreneurship".
Through organisations like SAWEN the dti is trying to erode this historic legacy by introduction policy initiatives like BEE. The most important thing about these initiatives is their recognition of women as an integral part of BEE. You cannot empower a community without giving women the opportunity and support to own a stake in the economy.
In the Western Cape BEE was until three years ago a non-existent policy. Preferential procurement policies did not even apply to government contracts of more than R2 million. While the rest of the country embraced change and transformation in 1994, in the Western Cape successive governments buried their heads in the sand, refusing to accept the inevitable.
That was until three years ago, when a coalition government of the ANC/NNP took over the reins of power. But we have had to play catch up against the other Provinces, who have used the time to make great strides in increasing ownership of the economy by black people.
The Western Cape has the country's second largest economy, yet ownership of this economy is still largely in white hands. BEE therefore has more relevance in our efforts to restructure ownership of the economy of our Province.
Since taking over as MEC for Economic Development I have introduced a number of initiatives whose imperatives are the empowerment of historically disadvantaged individuals and communities.
Some of the initiatives introduced in the last include the project to inspire a 1 000 small businesses in the next six months. We hope that a significant number of these entrepreneurs will be women. My department last year introduced a one-stop shop concept called the RED Door, where entrepreneurs could go for advice and mentoring.
The first two were opened in Khayelitsha and Mitchell's Plain during November. In the last month we have opened three more in Hermanus, Atlantis and Paarl.
An important aspect of the RED Doors has been the very strong focus on empowering communities, especially women. Close to 1700 potential and existing entrepreneurs visited the first two RED Doors. About 40% of those we assisted were women. This is significant indeed if one considers that RED Door were able to win contracts worth R8, 8 million in the last five months.
We have done these initiatives because BEE allows us the opportunity to correct the wrongs of the past, so that all our people, and women in particular, can share in the wealth of our Province. The Western Cape will never be a Home For All, if women do not benefit from the economy of the Province.
Islands of prosperity among a sea of poverty and disempowerment will only lead to social implosion. It therefore is in the interests of all in our Province to embrace BEE.
We have established a BEE office within the Department of Economic Development and Tourism as a measure to ensure that empowerment is entrenched and grows in our Province. This office will be a source of information and advice on all matters related to BEE. Women and women's must use this office. That is what I expect and want to see happening.
We will soon be establishing a Provincial BEE Council. The council will advise the Premier and Government of the Western Cape on all matters pertaining to BEE, including sectoral charters, the enforcement and monitoring of BEE in the Province.
These measures indicate to all that we are serious and committed to implementing BEE in the Western Cape. We want to increase the number of historically disadvantaged people owning, managing and controlling the levers of economic power.
Thank You.
