LETTER: BEE counters business fundamentals

International relations & co-operation minister Ronald Lamola’s call for black-owned businesses to support transformation is highly problematic (“Black businesses have duty to support transformation policies, says Lamola”, June 5).

Regardless of the race of their owner, businesses need a stable, free-market-friendly policy framework to thrive. The ANC’s ideology of “transformation”, and Lamola’s “revolution” are counter to the environment businesses need to flourish.

SA’s cardinal sin is racialism — discrimination based on race, and the preferencing of one race over the other, has caused huge damage to the country, not just during apartheid, but post-1994. BEE has led to billions, if not trillions, in losses due to corruption and missed economic opportunities.

Racial quotas in employment have led to disenfranchising not just the purported oppressor race of white people, but also racial minorities who were also victims of apartheid.

If the government wants black-owned businesses to thrive it should end its obsession with race. It should deregulate and cut red tape that prevents all businesses from flourishing. And it should enable a level legislative playing field for all businesses, regardless of race.

Businesses don’t thrive because they are given handouts, or preferential treatment. They thrive when they have good management and sound fundamentals and exist in a stable economy with pro-free market policies.

No amount of government aid will save a bad business. And no government aid is needed when a business is good. For government to enable business to flourish it needs to get out of the way.

Nicholas Woode-Smith
Cape Town

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