South Africa's Zuma laments 'unacceptable' inequality

[YahooNews]

Johannesburg (AFP) - President Jacob Zuma on Thursday lamented "unacceptable" levels of inequality still blighting South Africa, despite a decade of post-apartheid reforms.

Zuma said that while great strides had been made in growing the black middle class, the country still faced "unacceptable levels of poverty, inequality and unemployment."

"We are yet to see the growth of black industrialists, despite government's aggressive focus on boosting the manufacturing sector," Zuma told delegates attending an economic empowerment summit.

Thursday marked a decade since an empowerment law was introduced that gives preference to black people in business and the workplace.

While the programme has created a multiracial middle class, inequalities between the country's black majority and white minority are still glaring, twenty years after the end of apartheid.

Zuma said the state will continue to intervene to promote transformation to ensure the meaningful participation of black people in the economy.

With an economy that struggles to reach the levels of growth seen elsewhere in Africa, South Africa is plagued by chronic unemployment, with official levels reaching more than 25 percent.

Unofficial figures place unemployment at around 50 percent and the country has earned the reputation of being one of the most unequal societies in the world.

A study released in 2011 showed that black South Africans own only a 17 percent share of the 100 top companies listed on the Johannesburg Stock Exchange, Africa's biggest bourse.

The government has set a target for blacks to hold 25 percent of the locally owned shares by 2017.

Zuma said the development of small enterprises was key to job creation and skills development in the economy.

Challenges facing the economy, including rampant strikes and protests over poor service delivery by government are creating social tensions.

This week, the International Monetary Fund warned South Africa to implement reforms to shore up the sluggish economy, which is vulnerable to external shocks.

Source: South Africa's Zuma laments 'unacceptable' inequality