Government policy focus on black ownership had to move to sustainable wealth-creation rather than rigid policy formulas that lock black shareholders into heavily encumbered structures, Exxaro Resources CEO Mxolisi Mgojo said on Tuesday. Mgojo, who was delivering a speech at the four-day Investing in African Mining Indaba, was speaking after sharp criticism was levelled at Exxaro by Eskom, its largest coal customer, for allowing black empowerment shareholding to fall to 30% from more than 50%. Eskom requires its suppliers to be 50% plus one share black-owned. Acting Eskom CEO Matshela Koko said in January Exxaro had "shown Eskom the finger" and had "no decency to even engage on the matter". Mgojo said it was time to evaluate what had worked and what had failed in black empowerment over the past 22 years so that more sustainable black wealth and ownership could be created. The first wave of empowerment that occurred in the 1990s created what appeared to be impressive, black-owned cong...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.