business@iafrica.com reader, Princess Zulu would like to add her comments on cartels in South Africa.

The cohesion of society in all areas can, and needs to be improved, and requires the participation and empowerment of insightful people from all walks of life.

In service to the South African people the creation and improvement of happiness and well being for all must be the highest achievement.

This process has been started with a specific emphasis on the practical application of cohesion, integration and economic enhancement.

Happiness can be achieved through the improvement of prosperity, and with improved prosperity a richer quality of life will naturally develop. Prosperity will be the just reward for liberal, cohesive foresight and application by government, with progress the key objective, where progress is not confused with activity, and hopes are mentored with wisdom and steady guidance in a road map for the future.

Four ways to make money

Let us first have a look at the chemistry of the current economic realities. There are simply four ways for a South African to make money:

• Earning a salary
• Making a profit on a business transaction
• Making a profit from real estate
• Making interest on capital employed

So if you're doing all four correctly, you are generally in a good position.

For the average South African, earning a decent salary is difficult, compounded often with a large family group of at a young age, comparative expenses multiply, and flexibility to travel and develop a career is thus more difficult. The environment is not conducive to entrepreneurship, with generally large dominant corporates dictating market conditions, uncertainty in the market place, and the numerous barriers to entry such a cartels, exclusive clubs i.e. SABS, BAC and trade bodies acting like 19th century European guilds. This is further compounded by resistance from banks, who enjoy little competition and focus on maximising shareholder value in the short term to the detriment of a fully functioning, developed and competitive society.

Take for example the enterprise of baking bread.

Few will survive the current environment

In modern day South Africa how feasible is it for a poor but enterprising resident of Umlazi to establish a bakery and sell his product in the market place?

The reality is the average South Africa is limited in his earning potential via a poor quality education and a requirement to submit to the authoritive nature of the financial powers in the market place with little or no assets to secure his borrowings. His real estate is generally of poor quality and unlikely to rise in any significant value. The activities of cartels and dominant firms in the market place will prey on his efforts in a multitude of ways.

What is certain however overall, is that he must go to a capitalist for the money to finance his plans. There is thus a power over him — a power which does not treat him fairly and holds him in a ruthless position. There is however, very little else that will focus his mind more, motivate his success and galvanise his desire and spirit for survival. Sadly in the current environment few survive.

BEE a form of musical chairs?

In regard to empowerment, there seems very little evidence of new enterprise of BEE participants. What seems to exist is a form of musical chairs where the systems and core as set out above continues but with BEE participants replacing certain white parties and thus are enjoying, the benefits of the current status quo, with little or no motivation to change things.

Was this the objective of the ANC? Fight for freedom, then retain the current status quo with certain black Randlords instead of white ones. Is not social upliftment and well being of all South African central to the benefit of everyone, including such Randlords?

Consider the true industry of being in business, trade and finance. Where a young man or woman can start an honest enterprise, work hard, make money, pay his taxes, create employment, and leave a legacy for his descendants. For that we need a fluid, fully functioning competitive economic society, with social responsibility that derives happiness from serving the needs of others, and prospers in the process.

Do you agree with Princess Zulu? Add your comments below or mail the business team at business@iafrica.com

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