New insurance licences must only go to firms 51% black-owned, BBC says
The Black Business Council (BBC) has laid down a number of stringent conditions, which it says will have to be complied with if the goal of radical economic transformation is to be achieved. On Tuesday, BBC secretary-general George Sebulela outlined these requirements in a presentation on the transformation of the financial services sector, during public hearings of Parliament’s finance and trade and industry committees. All new insurance licences, he said, must be restricted to companies with a minimum black ownership of 51%. There must be set-asides of up to 35% for black entrepreneurs as a condition of licences. A minimum of 51% of new banking licences should be allocated to black owned companies. At least 30% of financial services companies should be allocated to black asset managers to manage, as part of black enterprise development. The problem currently, Sebulela explained, was that black asset managers were solely dependent on the Public Investment Corporation, which placed ...
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