Thirty Years of Apartheid's End: South Africa's Racial Economic Divide

Thirty years after apartheid ended, South Africa's economy remains divided by race. Unemployment and management roles show significant disparities, with the unemployment rate notably higher among Black South Africans. Ownership and management control in private sectors further highlight inequality, despite legislation aimed at Black economic empowerment.

Thirty years after apartheid ended, South Africa's economy remains mired in racial disparities, prompting heated political debates about the effectiveness of Black economic empowerment laws.

The unemployment rate tells a stark story. As of April-June this year, it stood at 33.5%, but the rate was 37.6% among Black South Africans compared to just 7.9% among white South Africans. Mixed-race South Africans faced a 23.3% unemployment rate. Over the past decade, Black South Africans have consistently faced unemployment rates higher than the national average, rising by more than nine percentage points since 2014.

In terms of management control, white individuals occupied 65.9% of top management posts in the private sector, while Black people held only 13.8% of these positions in 2022. Shockingly, at the unskilled labor level, 82.8% of the jobs were held by Black South Africans, with just 0.9% by white South Africans.

Regarding ownership, average Black ownership of companies listed on the Johannesburg Stock Exchange (JSE) was almost 30% in 2022 according to the Broad-Based Black Economic Empowerment Commission. However, a closer inspection reveals that actual Black ownership might be closer to 1%, as the statistics include other minority groups and are based on a small sample size. Board membership on JSE-listed companies was 47% Black, signaling potential progress that is limited by the lack of comprehensive data.

(With inputs from agencies.)