Racial segregation in South Africa’s economy

JOHANNESBURG: Thirty years after the end of apartheid, South Africa’s economy remains deeply divided along racial lines, sparking a political debate about the extent to which the flagship black economic empowerment law has worked.

Here are some facts about racial segregation in South Africa.

UNEMPLOYMENT

South Africa has been struggling with low economic growth and high unemployment for years. The official unemployment rate was 33.5 percent between April and June this year.

During this period, according to the statistics agency, the unemployment rate among black South Africans was 37.6 percent and among white South Africans 7.9 percent. Among South Africans of mixed origin, it was 23.3 percent.

According to Statistics South Africa, the unemployment rate among blacks has consistently been above the national average over the past decade and has risen by more than nine percentage points since 2014.

MANAGEMENT CONTROL

In the private sector, according to the South African Equal Opportunities Commission, in 2022, 65.9% of top positions were held by white people, while black people held 13.8% of positions.

According to official data, about 8% of South Africa’s 64 million inhabitants are white.

Statistics show that the proportion of black people increases at every level of employment, from managerial to professional and skilled workers to semi-skilled and unskilled employees.

At the unskilled labor level, in 2022, 0.9% of jobs in the private sector were held by whites and 82.8% by blacks.

PROPERTY

According to the Broad-Based Black Economic Empowerment Commission, which also includes other minority groups such as mixed race and Asians in its count, the average black ownership of companies on the Johannesburg Stock Exchange was almost 30% in 2022.

However, the report is based on a small sample of companies that submitted their information. One economist has calculated that the actual share of black owners in listed companies is about 1%.

In 2022, the proportion of black members on the boards of listed companies was around 47 percent, the commission said in its latest report, adding that this was a potential step forward but that due to limited data, it did not necessarily reflect the industry’s performance.

“There is no company registered among the companies listed on the JSE that is 100% black-owned,” it said. REUTERS