Devil's in the detail: how to assess transformation of the South African private sector

Abstract:An enormous amount of time and energy has been spent assessing the extent of transformation of ownership of the South African private sector. To date, the exercise has not moved much beyond squabbling over numbers. In doing so, the debate has ignored an estimated two thirds of the private sector. Business and government have talked past each other about the same set of regulatory compliance targets–the former focused on arguments for maintaining or reducing the targets; the latter on reasons to extend them. One point of consensus is that in the 25 years since South Africa achieved democracy, the pace and extent of transformation of private sector ownership has been wholly inadequate. This paper seeks to examine how we should be thinking about listed equity, which has had more focus as a result of clearer metrics being available; the transformation of unlisted business sector; the impact on private sector ownership of government's range of goals since 1994; and proposed policy amendments intended to develop a view on equity ownership in South Africa shared by government, business, organised labour and other key stakeholders.