Factbox: The Racial Divide in South Africa’s Economy By Reuters

By Nellie Peyton

JOHANNESBURG (Reuters) – Three decades after the end of apartheid, South Africa’s economy continues to reflect stark racial disparities, igniting discussions on the effectiveness of its primary Black economic empowerment legislation.

Key Insights into South Africa’s Racial Divide

UNEMPLOYMENT

For years, South Africa has faced low economic growth coupled with high unemployment rates. As of April to June this year, the official unemployment rate stood at 33.5%. Notably, the unemployment rate among Black South Africans reached 37.6%, while for white South Africans, it was 7.9%. Among South Africans of mixed race, the figure was 23.3%. Over the past decade, the unemployment rate for Black individuals has consistently exceeded the national average, rising by over nine percentage points since 2014, according to Statistics South Africa.

MANAGEMENT CONTROL

In the private sector, as of 2022, white individuals held 65.9% of senior management positions, in contrast to 13.8% held by Black individuals, as reported by the Commission for Employment Equity. With a total South African population of 64 million, only around 8% are white, according to official data. The statistics further illustrate that the proportion of Black individuals increases at lower employee levels — with white individuals making up just 0.9% of unskilled jobs, while Black individuals represented 82.8% in 2022.

OWNERSHIP

Average Black ownership within companies listed on the Johannesburg Stock Exchange was reported to be nearly 30% in 2022, according to the Broad-Based Black Economic Empowerment Commission, which includes additional minority groups in its calculations. However, this figure is derived from a limited number of firms that provided data. Some analysts estimate actual Black ownership of listed companies to be around 1%.

Board representation for Black individuals in listed companies was approximately 47% in 2022, suggesting some advancements, though the limited data means this figure may not accurately reflect overall industry conditions. Importantly, no entity was registered as 100% Black-owned among Johannesburg Stock Exchange listed companies.