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    Addressing Constraints to South Africa’s Agriculture Inclusiveness
    (2021-09) Sihlobo, Wandile; Qobo, Mzukisi
    South Africa’s agriculture remains dualistic, with large scale commercial farmers who are predominately white and small-scale and subsistence farmers that are mainly black. These disparities in fortunes result from the long history of segregation policies and apartheid. The efforts to build an inclusive agricultural sector through the upliftment of black farmers by the new democratic government since 1994 have failed. As such, black farmers in South Africa still constitute between 5 and 10 per cent of the overall commercial production. We explore the constraints to inclusive growth drive in the agricultural and agribusiness sector and offer recommendations for improvement. These include a need for increased efficiency at the local government for ensuring service delivery to farming towns, blended finance instruments for funding farmer development, and the prioritization of private-public-partnership approaches for farmer development and land reform projects. We frame the interventions for the post-COVID-19 dispensation, focusing on the potential role of agriculture in fostering inclusion and supporting rural economies and employment.
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    Industrial Policy, the Manufacturing Sector and Black Empowerment in South Africa
    (2021-09) Goga, Sumayya; Avenyo, Elvis Korku
    Black economic empowerment (BEE) in South Africa has undoubtedly been ambitious in seeking to transform ownership, control, and management of the economy’s productive assets and resources. It is ambitious because the changes that are needed to reverse decades of entrenchment of economic power in the hands of a few are far-reaching. Extensive transformation means challenging the position of incumbents in the economic system and the interests that work together to maintain those positions, in the context of a decidedly liberal economic policy context. While BEE policy has been applied as the African National Congress government’s primary strategy for bringing about transformation in the ownership and control of productive assets in the economy, the outcomes in key sectors of the economy have been poor in terms of inclusion. This paper considers the interrelations between the black empowerment programme and industrial policies in South Africa, with specific reference to transformation in the manufacturing sector. The paper examines the extent of transformation in the manufacturing sector in South Africa. The paper seeks to understand why South Africa has not seen the emergence of a large, economically significant black industrialist class that owns and controls economic assets and resources that are competitive at different levels in the manufacturing sector. The paper further explores the extent to which South Africa’s industrial policy strategies have contributed to or undermined deep transformation in the manufacturing sector. The paper identifies key limitations of BEE and South Africa’s industrial policy framework, and the gaps between these policies in terms of addressing the factors that restrict the inclusion of black-owned firms in manufacturing. It further considers how industrial transformation could be accelerated in South Africa
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    The Alignment of Black Economic Empowerment and Skills Policies in South Africa
    (2021-04) Kgalema, Victor; Marock, Carmel; Stephanie Allais
    This paper explores the relationship between the goals of broad-based black economic empowerment (BBBEE) and those of the skills development policy in South Africa. We review the relationship between the policy tools that have been developed for each of these policies. The paper finds that while the high-level goals of the two sets of strategy seem to be well-aligned, there are many challenges in practice. The first relates to National Skills Development Strategy (NSDS), whose key purpose is improving the effectiveness and efficiency of the country’s skills development system. The strategy represents an explicit commitment by government to encourage the linking of skills development to career paths and career development as well as to promote sustainable employment and in-work progression. However, the strategy lacks a tightly defined set of priorities, making it open to manipulation in terms of the achievement of targets. The second challenge relates to a host of implementation problems with skills policy in South Africa. At the same time, the monitoring mechanisms of the BBBEE code focus on whether skills training takes place, the numbers of people who access workplace experience and levels of expenditure, rather than on the extent to which the skills development activities result in the intended outcomes of the policies (either the BBBEE policy or the NSDS). This reinforces the first problem – a focus on measurable targets, rather than fundamental policy goals in both policies.
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    Black Economic Empowerment: A Review of the Literature
    (2021-09) Francis, David; Valodia, Imraan
    South Africa has the highest income inequality in the world. A recent report by the World Bank found the Gini coefficient of income to be 0.66, the highest of all 149 countries for which the World Bank has reliable data. In the workplace, this is reflected in vast inequalities in salaries and wages between high and low earners, but importantly between different race and gender groups. Despite a plethora of legislation aimed at addressing inequality in the workplace, women and black workers in South Africa continue to be paid less than men and white employees, even when doing the same work (the pay gap), and are more likely to work in precarious, low-paid jobs (occupational segregation). These factors are driven by differences in the characteristics of workers, and by structural discrimination in the economy. Conceptually, we can decompose structural discrimination into two forms – that which discriminates against people who do the same job, based on race and gender (the pay gap) and that which discriminates indirectly by occupational segregation – black people and women are concentrated in low-paying occupations. In this paper, we review the literature on occupational segregation and the gender and race pay gaps in post-Apartheid South Africa. We examine the various policy interventions that have attempted to address this enduring problem. In particular, we ask whether broad-based black economic empowerment – while not explicitly a labour market intervention – has had any positive impact on reducing labour market inequalities.
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    The Alignment of Black Economic Empowerment and Skills Policies in South Africa
    (2021-04-16) Victor Kgalema, Carmel Marock and Stephanie Allais
    This paper explores the relationship between the goals of broad-based black economic empowerment (BBBEE)and those of the skills development policy in South Africa. We review the relationship between the policy tools that have been developed for each of these policies. We start from the premise that South Africa has developed a complex set of policies, many of which have not been aligned well with each other. In some instances, policies duplicate or contradict one another. The policies require multiple company reports that have tightly specified targets. Reporting requirements do not consistently support the achievement of the broader goals of the policy interventions and do not always work together. A second starting assumption is that empowerment is not just a matter of income and wealth – it is also about access to skills, resources and knowledge.