Submission on Professional Sector to NDP

01 April 2012
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SOUTH AFRICAN TRANSFORMATION MONITOR (SAT MONITOR)
Transformation in the Professional Sector: Accountants, Engineers,
Attorneys, Information Technology, Financial Service Professionals,
Doctors.
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Table of Contents
1 Introduction ....................................................................................................................................... 1
1.1 South African Transformation Monitor ...................................................................................... 2
1.2 South African Transformation................................................................................................ 3
1.3 The use of terminology…………………………………………………………………………3
1.4 Background to the study………………………………………………..................................4
1.5 Data for the study……………………………………………………………………………….4
2. TRANSFORMATION IN THE PROFESSIONAL SECTOR IN SOUTH AFRICA...................... 5
2.1 Racial representation of SIACA membership ................................................................................. 5
2.2 Racial representation of Trainee Accountants...............................................................................6
2.3 Racial representation of Attorneys……………………………………………………………………………………………7
2.4 Racial representation of SA Financial Service Professionals………………………………………………………8
2.5 Racial representation of Engineers…………………………………………………………………………………………8
2.6 Racial representation of Engineers for all categories………………………………………………………………9
2.7 Racial representation of Professional Engineers……………………………………………………………………..10
2.8 Racial representation of Professional Engineering Technologists…………………………………………….11
2.9 Racial representation of Certificated Engineers ………………………………………………………………………11
2.10 Racial representation of Candidate Engineers ……………………………………………………………12
2.11 Racial Representation in the ICT sector………………………………………………………………………13
2.12 Medical Practitioners ……………………………………………………………………………………………….13
2.13 Racial representation of Medical Doctors…………………………………………………………………14
2.14 Conclusion……………………………………………………………………………………………………………………14
3 References………………………………………………………………………………………………………………………………………15
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1. INTRODUCTION
In 1994, South Africa was characterised by a black1
population that was, as a rule,
poverty stricken and economically marginalised. As apartheid gave way to political
freedom in South Africa in 1994, various companies began to hire black professionals for
the first time. These included accountants, financial experts, IT professionals, engineers,
doctors, nurses etc. In order to rectify the skewed economic profile of black South
Africans, and to facilitate the entry of blacks into various professions, a vast body of
legislation, policies and charters in various sectors of the economy have been introduced
since 1994. Instrumental in ensuring black advancement are the Employment Equity Act
55 of 1998 and the Broad-Based Black Empowerment Act 53 of 2003 and numerous
other acts.
During the transition to democracy in 1994, it was estimated that about 5% of all
professionals were from the black majority of the population. In examining this severe
under-representation, this study seeks to analyse the dynamics in racial representation
in various professions over time. Various authors have held the view that the political,
social, and economic context in South Africa has changed dramatically since 1994. But
what has been the impact of these changes on the racial composition of professionals?
We would ask such questions as: is race still a silent factor in the professional sector in
South Africa? What has changed in the racial composition of professionals? The focus of
this paper is not on absolute numbers of black professionals but on the change in racial
composition of professions since the transition to democracy. We believe that such
studies can give an indication of the extent of black advancement since 1994.
This study documents the actual progress made by the different racial groups in the
areas identified since the transition to democracy. It also considers the impact of these
changes on the broader political economy. My findings in the first phase of the project
were that blacks have advanced rapidly from an economic point of view since 1994. I
say this with the knowledge that I have been careful to measure black advancement and
transformation in South Africa in an accurate, comprehensive and objective manner.
Given the sensitive nature of a project such as this one, we take a very conservative
approach in reaching our conclusions.

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The broad definition of blacks includes Indians and Coloureds.
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1.2 SAT Monitor
The SAT Monitor will provide statistical evidence of the progress black South Africans
have made alongside other racial groups since 1994. Research will be broken down into
several phases, with each phase concentrating on a certain sector of the economy. The
sectors covered are as follows:
1.1.1 Black ownership of the Johannesburg Stock Exchange (JSE) and ownership of
insurance policies;
1.1.2 the public sector;
1.1.3 bank accounts, savings accounts and credit cards;
1.1.4 company registrations and directorships;
1.1.5 education enrolment and levels (primary, secondary, tertiary, public and private);
1.1.6 income;
1.1.7 land ownership, land holding and mortgages (private and government);
1.1.8 management (private sector);
1.1.9 occupations (skilled employment);
1.1.10 professions (IT, accountants, engineers, doctors, lawyers etc);
1.1.11 access to healthcare; and
1.1.12 tertiary education.
1.3 South African Transformation Index (SATI )
As previously stated, SATI will be constructed by using the research in each sector as a
cornerstone. SATI will be updated annually, using all research done in the different
sectors for a specific year.
1.4 The use of terminology
The study uses data spanning 1994 to 2009. The meaning of given terminology, with
specific reference to the use of Indian/Asian and African/black, changed over this period.
An explanation of this terminology is important for the interpretation of this report. Before
the implementation of the Employment Equity Act in 1998 and the introduction of new
reporting structures by government, most government departments generally used the
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word black when referring to black (skin colour) South Africans and Asian when referring
to South Africans of Asian descent. After 1998 the reporting structure changed with the
designation African referring to black (skin colour) South Africans, Indians and
Coloureds. These three classifications make up what is now called the broad definition
of black in South Africa today. White refers to South Africans with a white skin colour.
Throughout this study, the broad definition of black (which includes African, Indian and
Coloured) is used.
1.5 Background to the study
During the climax of the apartheid period, 60% of South Africa’s laws were related to
race. This makes it hard to study South Africa’s professionals without mentioning race.
According to Stats SA, from 1992 to 2009, there has been growth in the South African
population in all racial groups. The Black population increased by 39.4%, the
Coloured/Indian population by 33.6%, and the White population by 4.6%. The Apartheid
education policies of exclusion imposed a limitation on a majority of blacks who wanted
to enter a profession. Currently, entrance requirements into various professions in South
Africa typically consist of three criteria: (1) minimum education level, (2) experience, (3)
to sit a board examination.

Since the transition to democracy, the government has come up with various policies to
correct the inequalities of the past. The questions to be answered by this study are:
What has been the impact of government policies such as the Employment Equity Act,
Skills Development Act, and the SAQA Act among many others on the development of
black professionals in South Africa? What changes have taken place in the racial
composition of the professions since 1994? What gaps still exist in the racial
composition of professions?
1.6 Data for the study
The data for this study has been obtained from various sources since no single
organisation/institution has comprehensive documented information on professionals by
race in South Africa. The data was mainly secondary data collected from the Department
of Labour reports, Stats SA data, South African Institute of Race Relations’ publications
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and South Africa Survey, data from various professional bodies in South Africa such as
SAICA, SA Law Society, HSRC, and other internet sources. This data was then
aggregated and analysed.
The focus of the analysis is not on the actual professional figures by race but rather on
the change that has taken place in the composition of professionals between 1994 and
2009. Tables and charts will be used to show both actual numbers and also the change
in professional for the various racial groups in South Africa.
2 TRANSFORMATION IN THE PROFESSIONAL SECTOR IN SOUTH AFRICA
2.1 Figure 1: Racial representation of SAICA membership (1994-2009)
Source: South African Institute of Chartered Accountants (SAICA),
www.saica.co.za/members
According to Figure 1, only 1% of Chartered Accountants (CAs) in the 1990s were black
while 99% were white. Since then, there has been a significant transformation in the
accounting sector in South Africa. For example, African CAs have increased by 706%
from a mere 220 in 2002 to 1,774 in 2010, Coloureds 319% from 189 to 792, Indians
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185.6% from 889 to 2851. Whites increased the least by 41.2% from 18,790 to 26,529.
Therefore there has been significant black advancement in the area of professional
accountants. By 2009 black CAs numbered 5,417 (16,96%) out of a total of 31,946
registered members.
2.2 Figure 2: Trainee accountants by race (2002-2007)
Source: South African Institute of Chartered Accountants (SAICA),
www.saica.co.za/members
Figure 2, shows that between 2002 and 2007 there has been a continuous increase in
the number of trainee black accountants. Africans increased by 93.4% from 1,228 in
2002 to 2,375 in 2007, Coloureds by 318% from 141 to 590, and Indians by 21.5%
from 1,245 to 1,513. Whites decreased by 9% from 6,288 to 5,733 within the same
period. Using the broad definition of black (African, Coloured, Indian), the increase was
71%, from 2,614 in 2002 to 4,478 in 2007. Therefore there has been a significant
increase in black trainee accountants since the transition to democracy.
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2.3 Figure 3: Attorneys admitted by race (1998-2008)
(Source: Data from LEAD)
Figure 3 shows that between 1998 and 2008 the number of African attorneys admitted
increased by 71%, Coloured by 137% and Indian by 122%, while white attorneys
admitted within the same time period decreased by 61%. Therefore there has been
significant black advancement in the admission of attorneys for all previously
disadvantaged race groups.
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2.4 Figure 4: Percentage racial representation of SA financial service
professionals
Source: Department of Labour.
Figure 4 shows that white financial service professionals decreased by 4% from 71% in
2000 to 67% in 2004. African representation increased by 7% from 11% in 2000 to 18%
in 2004, and Indian by 1% but Coloured representation decreased by 3% within the same
period.
2.5 Racial representation of engineers
The Engineering Council of South Africa (ECSA) is a statutory body established
in terms of the Engineering Profession Act, 2000 (Act No 46 of 2000) and derives
its powers and responsibilities from that act. The Engineering Council of South
Africa keeps racial records of engineers in such categories as professionals,
professional technologists, certificated engineers, and candidate engineers. All of
these categories between 1994 and 2008 will be analysed below.
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Figure 5: Racial representation of engineers for all categories 1994-2008
Source: The Engineering Council of South Africa annual reports 1994-2008
According to Figure 5, there has been a 900% increase in the number of black
registered engineers for all categories from 102 in 1994 to 1,021 in 2008, Coloureds
increased by 400% from 11 to 55, and Indians by 210% from 79 to 245 but whites
decreased 8% from 1,366 in 1994 to 1,256 in 2008. This data shows significant black
advancement in the engineering sector for all categories. To understand where the
advancement took place, the data in Figure 5 will be decomposed into the various
professional categories to see where there was greater black advancement.
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2.6 Figure 6: Racial representation of professional engineers (1994-2008)
Source: The Engineering Council of South Africa annual reports 1994-2008
Figure 8 shows a 44% decrease in the total number of registered professional
engineers between 1994 and 2008. This decrease is largely due to the 54% decrease in
white professional engineers. Blacks increased by 30%, Indians by 100% and Coloureds
by 80%. Thus significant black advancement took place between 1994 and 2008 in the
registration of professional engineers. Though in absolute values there is a racial gap in
the registration of professional engineers, this gap will decrease with the increase of
black engineers graduating from the various universities.
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2.7 Figure 7: Registration of professional engineering technologists (1994-2008)
Source: The Engineering Council of South Africa annual reports 1994-2008
Figure 7 shows that in 1994, 96% of all registered engineering technologists were
white and only 4% were black (African, Indian and Coloured), but in 2008, whites
constitute 64.2% and blacks 35.8%. This represents a 31.8% increase in black
professional engineering technologists.
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2.8 Figure 8: Registration of certificated engineers by race (1994-2008)
Source: The Engineering Council of South Africa annual reports 1994-2008
Figure 8 show that in 1994 there were no registered certificated black engineers;
whites constituted 100% of certificated registered engineers. In 2008, blacks
constituted 18% of certificated engineers and whites 82%. Though there is
recorded black advancement in the registration of certificated engineers, more
blacks are yet to be certificated engineers.
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2.9 Figure 9: Candidate engineers by race (1994-2008)
Source: The Engineering Council of South Africa annual reports 1994-2008
Figure 9 shows that whites constituted 81% of candidate engineers in 1994, and
blacks 19%. In 2008, whites constituted 49% and blacks 51% of candidate
engineers. There has been a significant 32% black advancement between 1994
and 2008.
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2.10 Figure 10: Employment trend in the ICT sector by race (1996-2005)
Source: Quantec, 2007 (Stats SA OHS data for 1996-1999; Stats SA
LFS data for 2000-2005
Figure 10 shows that between 1996 and 2005 there has been a continuous
increase in the representation of ICT professionals for all races. The
average annual growth rate for the various races are: 1.2% African, 3.8%
Coloured, 0.2% Indian and 1.3% White between 1996 and 2005.
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2.11 Figure 11: Registered medical practitioners by race (1999-2008)
Source (Health Professional Council South Africa HPCSA)
According to figure 11, there has been a 22.1% increase in the number of
registered medical practitioners between 1999 and 2008. This data will be
decomposed by race to better understand the extent of black advancement in the
medical field.
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2.11Figure 12: Medical practitioners on the PERSAL and HPCSA registers,
by race, 2005-2007
Source PERSA and HPCSA 2005-2007
From Figure 12, between 2005 and 2007 white medical practitioners increased by
176% from 5,565 in 2005 to 15,367 in 2007. African medical practitioners increased
by 31.5% from 3,912 to 5,143, and Indian increased by 88.1% from 2,269 to 4,269,
but Coloured decreased by 3% from 496 to 481.
2.12 Conclusion
Between 1994 and 2008, the number of professional South Africans increased
remarkably, especially in the black population. This has been largely due to
easier access to education and professional certification exams for people of all
races. Undoubtedly the removal of racial limitations and government inclusive
policies allowing individuals the freedom to enter whichever profession they
choose have been the driving force behind this transformation.
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It can be concluded, therefore, that a remarkable transformation took place in
the professional sector in South Africa between 1994 and 2008. For example,
black membership of SAICA increased by a remarkable 900%, the number of
black engineers increased by 30%, the ICT sector data showed a 1.2% annual
growth rate for blacks, the medical practitioners data showed a 31% growth rate
for blacks between 2005 and 2007, and the data for the admission of attorneys
showed a 71% increase for blacks between 1998 and 2008. Within the same
period, white professionals in such professions as engineers decreased by 41%
and attorneys by 61%.
The perception that no transformation has taken place in the professional sector
in South Africa is a myth and not based on statistical data for the various
professions.
However, in certain professions, although there is growth in black
representation, these growth rates need to be sustained if equity in the race
profiles is to be attained.
3 References
1. South African Institute of Chartered Accountants (SIACA), www.siaca.co.za/members
2. PERSA and HPCSA 2005-2007
3. Health Professional Council South Africa HPCSA www.hpcsa.co.za
4. Quantec, 2007 (Stats SA OHS data for 1996-1999; Stats SA LFS data for 2000-2005
5. The Engineering Council of South Africa annual reports 1994-2008. www.ecsa.co.za
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6. Archer S (2008): The financial services sector and its skills development issues relevant
to the South African Economy. UCT, Research Commissioned by the Department of
Labour South Africa.
7. Skills demand and supply in the South African ICT 1996-2005: Sector Studies Research
Project 2008, commissioned by the Department of Labour
8. Law Society of South Africa (LASA) Annual Reports, 2004, 2004, 2006, 2007, 2008,
2009.
9. www.wits.ac.za/ electronic research resources. Accessed 10/08/2010. 

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