Motsepe, Sexwale’s assets targeted by South Africa metals Union

Finance

The National Union of Metalworkers of South Africa, which has 260,000 members, has called for the nationalisation of the assets of the country’s richest black citizens.

Rich black South Africans, including Patrice Motsepe, who controls African Rainbow Minerals Ltd, Human Settlements Minister Tokyo Sexwale, MTN Group Ltd chief executive officer Phuthuma Nhleko and Liberty Group Ltd chairman Saki Macozoma, should have their assets seized, the Johannesburg-based labour union said in an e-mailed statement.

Mr Motsepe (the richest black South African) and Mr Sexwale are amongst black business leaders who have benefited from laws aimed at boosting black participation in Africa’s biggest economy in a bid to redress the inequalities of apartheid. Under this legislation, companies ranging from banks to miners have been compelled to sell stakes in their businesses to black South Africans.

The advent of majority rule in South Africa was “never meant to reproduce or replace a white capitalist class with a black capitalist class or co-opt connected politicians to join the exploiters,” Numsa said.

The call adds to earlier demands by groups including the youth league of the ruling African National Congress, and the Congress of South African Trade Unions, of which Numsa is a member, for the nationalisation of South Africa’s mines. It also adds to tensions within the ruling alliance of the ANC, Cosatu and the South African Communist Party, as Mr Sexwale is a leading ANC member as was Mr Macozoma.

President Jacob Zuma has said the nationalisation calls are merely a debate, while Deputy President Kgalema Motlanthe said that while there aren’t any “immediate” plans to nationalise mines, the slow pace of increased black participation in the industry may have fuelled the calls.

Nov 3 (Bloomberg)