Government’s ambitious target to buy at least 75% of goods and services from South African producers is “eminently achievable”, Deputy President Cyril Ramaphosa told black business leaders this week.

In an address delivered at the Black Business Council’s annual general meeting gala dinner, Ramaphosa pointed to the solar-water-heater sector as an example of what could be achieved.

“In 2008, there was very little or no local manufacturing to support the production of solar water heating panels. Today we have a thriving solar water heating manufacturing industry. More than 60% of the content towards solar water heating panels is locally produced.”

But a lack of diversification and growth in the productive sectors of the economy had contributed towards deindustrialisation over the past 30 years. For this reason, the Deputy President drew a direct link between the goal of economic transformation and the rebuilding of industry and emergence of black industrialists.

Government would provide support by building infrastructure, guiding sector strategies, improving basic education and skills development and using development finance institutions to increased access to affordable lending. However, the private sector, which accounted for 70% of production and jobs, needed to invest, while citizens had to embrace entrepreneurship and enterprise creation.

While recognising the ongoing disadvantages faced by black entrepreneurs, Ramaphosa urged black business to refuse to be “victims” of past political and economic exclusion.

“We need a dynamic and entrepreneurial class of black industrialists. We need people who will take a long-term perspective, roll up their sleeves and drive the development of our productive capabilities from the shop floor up.”

Black business could, thus, not be content merely with waiting for the opportunities that government created.

“Black business must create its own opportunities. It must develop its own agenda for radically transforming not only the complexion of South African business, but also the way in which business is conducted,” Ramaphosa said, while also arguing that the best preparation for any aspirant young businessperson should be found around the family dinner table.

“It is here, from an early age, that children listen to their parents talking about business and become familiar with the basic principles of commerce. And they can become steeped in a particular entrepreneurial culture. Sadly, in South Africa, thanks to our apartheid past, there are precious few dinner tables where such discussions take place.”

The appointment of Lindiwe Zulu as South Africa’s first Minister of Small Business Development would “enable us to focus our efforts and concentrate our support where it will have the greatest impact”.

Speaking prior to the event, Zulu promised to deliver her plans soon for improving the environment for small business and enterprise development, while also calling for entrepreneurship to become a “toyi-toyi of a different type” – using the energy previously directed towards resistance to spur economic and development opportunities.

Ramaphosa also promised to improve consistency in legislation and regulations that affect business. “We are creating capacity in The Presidency to conduct thorough impact assessments of new and existing legislation and regulations to ensure alignment with the National Development Plan (NDP).”

But government would also be looking to black business to become an active agent in the implementation of the NDP.

“Black business must lead. It must develop strategies - working with government, labour and the rest of the business community - to train tens of thousands of engineers, actuaries, accountants, teachers, doctors and project managers. Black business must look at how emerging entrepreneurs can be financed, supported and provided with market access,” Ramaphosa averred.