Poverty Facts

South African wealth redistribution

The South African ownership transfer problem . I read an article recently about South Africa – I can’t remember the source right now, but I think it was The Economist. Something like 70% of the country’s wealth is currently in the hands of whites and their share continues to decrease. The fastest growing new wealth is among hyper-wealthy new black elites. Basically the gov’t is forcing the white owners to sell off their assets (or provide some equity stake) to non-whites. So a small group of well-educated (often abroad) black entrepreneurs are stepping up the plate. Essentially these elites are being “given” assets in the name of ethnic ownership diversity.

So the stats indicate that the blacks are increasing their wealth pool in SA even though almost no benefit is reaching the huge majority of poor blacks & coloureds. This helps the incumbent (black-led) gov’t to stay in power, but it hardly is addressing the major issue of wealth redistribution to the masses as was promised.

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