THE government’s black economic empowerment policy has contributed to the country’s deindustrialisation as it has fostered the creation of middlemen in the supply chain, says former African National Congress MP Professor Ben Turok.
Prof Turok, who is also the director for the Institute for African Alternatives (IFAA), said the policy incentivised mining companies to source their supplies from black-owned suppliers which were not themselves involved in the productive sector of the economy but merely involved in the import/export business.
These middlemen had replaced the manufacturing firms that previously supplied their products directly to the mining companies.
The middlemen had tended to import the supplies at the expense of the local industry, particularly the capital goods industry, Prof Turok said.
via www.bdlive.co.za
If you think this is a problem now - just wait and see once the new codes kick in.
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