White exodus could be fatal for S African economy

JOHANNESBURG, Oct 4 (Reuters) A leading South African think-tank called on the government to halt an exodus of skilled whites, saying their departure could prove fatal for the country's economy.

Africa's economic powerhouse suffers from an acute lack of skilled workers in both the private and the public sector, a problem the group said yesterday was exacerbated by what it called misconceived legislation designed to boost jobs for blacks.

''The country is very seriously short of skills -- there could be potentially fatal consequences for economic growth,'' John Kane-Berman, chief executive of the South African Institute f Race Relations (SAIRR), said in an interview yesterday.

The African National Congress-led government, which took power in 1994, has sought to remedy apartheid-era injustices that discriminated against blacks by introducing an affirmative action programme.

The white population in South Africa declined by 841,000 between 1995 and 2005, the biggest drop in at least 50 years, according to SAIRR, which was formed in 1929 to promote democracy and improve race relations in South Africa.

''The (affirmative action) legislation was entirely misconceived.

The reason there aren't so many blacks in managerial positions is lack of supply not lack of demand. There are not sufficiently qualified black people,'' Kane-Berman said.

Government officials were not immediately available to comment on the criticism.

While many whites complain about affirmative action, blacks say there is a lack of educational opportunities. Education Minister Naledi Pandor said last week poor quality education in public schools threatened long-term economic growth.

Whites, who have always been a minority in South Africa, now account for 9 per cent of the estimated population of 45 million people, down from 12.5 per cent in 1995, according to the think-tank, which based its analysis on official data.

The government cannot confirm the rate of the exodus because it stopped publishing emigration figures in 2004.

''The heads of families are emigrating. They're professionals and they're taking their kids with them. We cannot afford to lose those skills,'' said Kane-Berman, an outspoken voice against apartheid whose group continues to monitor race relations.

Deputy President Phumzile Mlambo-Ngcuka recently acknowledged the exodus of skilled South Africans was a serious problem and that the government was taking steps to encourage people to remain or return to the country.

REUTERS PDM KP1015