President Cyril Ramaphosa underscored the importance of worker share ownership schemes in fostering economic transformation and resilience. Delivering the keynote address at the inaugural Worker Share Ownership Conference in Johannesburg, President Ramaphosa highlighted how giving workers a stake in corporate decision-making can boost morale, drive innovation, and build a stronger economy.
The conference, which aims to advocate for Employee Share Ownership Plans (ESOPs) in private companies, brought together trustees, CEOs, labor and business representatives, and company chairs for meaningful dialogue on developing a model of worker ownership tailored to South Africa’s economic needs.
“This conference is an opportunity for meaningful dialogue among a diverse array of participants. It is an opportunity to develop a model of worker ownership that can serve the needs of our economy,” Ramaphosa said. He emphasized that worker ownership not only empowers employees as partners and stakeholders but also equips them with a deeper understanding of the challenges and opportunities facing their companies, fostering partnerships that drive growth, investment, and job creation.
President Ramaphosa pointed out that worker ownership initiatives make sound business and economic sense, beyond their role in promoting social justice. “They are key to building a more resilient economy whose benefits flow equitably through society. Worker share ownership initiatives boost morale and productivity,” he said. Workers who feel valued and respected are more likely to contribute innovative ideas for improving processes, products, and services.
Economic Transformation
Addressing the broader context of economic transformation, President Ramaphosa acknowledged the government’s efforts to improve economic participation among black South Africans following apartheid. He cited the enactment of laws to support small and medium-sized enterprises, labor legislation for decent working conditions, and the Broad-Based Black Economic Empowerment (BBBEE) Act as significant strides.
However, he noted that there is still much to be done. “This is therefore a good time to collectively assess the impact of the enabling legislative environment to examine the learnings over the past two decades. A vital measure of economic empowerment is the extent to which ownership and control of the economy is broadened, particularly among black and women South Africans,” he said.
Worker share ownership schemes, also known as Employee Share Ownership Programs, are crucial instruments for broadening economic ownership and control. These schemes are supported by the BBBEE Act, the Competition Act, the Companies Act, and other legislation.
Shared Commitment
President Ramaphosa highlighted the government’s role in guiding the design and implementation of these programs through the Department of Trade, Industry and Competition and providing catalytic funding through entities like the Industrial Development Corporation and the National Empowerment Fund. He stressed the importance of a shared commitment to economic transformation.
“It is vital that we harness the spirit of partnership as we chart the course for the future of these programmes and for an even better, more sustainable worker shareholder regime. By championing worker ownership, we are building a future where every employee has a stake in the success of their company. Together, we are paving the way for a more equitable and prosperous society in which no one is left behind,” Ramaphosa concluded.
Importance for South Africa’s Improvement
The implementation of worker share ownership schemes is vital for South Africa’s socio-economic improvement. These initiatives not only promote fairness and equity but also drive economic resilience by ensuring that a broader segment of the population benefits from economic growth. By empowering workers as stakeholders, these schemes can reduce income inequality, enhance social stability, and foster a more inclusive economy. As workers gain a vested interest in their companies’ success, productivity and innovation are likely to increase, contributing to sustainable economic development and job creation. This paradigm shift is essential for building a more prosperous and equitable South Africa.
