CAPE TOWN, June 20 (Reuters) - South Africa must better communicate its policies on black economic empowerment (BEE) to foreign investors who fear nationalisation, top global business leaders said on Sunday.
A decade after the end of apartheid, most of South Africa's economic wealth still rests with the white minority and the government is accelerating efforts to involve the black majority in the mainstream economy.
The country's International Investment Council (IIC) -- which brings together foreign business leaders and government officials -- said after a meeting it supported BEE, but mistaken perceptions may harm investment prospects.
"As a point of principle I think BEE is not only good for South Africa but it's a hard-edged business issue, it's good for business," Chairman Niall FitzGerald of Anglo-Dutch consumer goods giant Unilever told reporters.
"But on the equity issue, make it clear this is one part of a programme and you will facilitate those who wish to involve equity and not force it ... what has been created is an image that somehow or other this is going to be forced," he added.
South Africa has encouraged industries to draft sector charters on transferring ownership to black business people, and nationally it is targeting 20 percent equity transfers.
FitzGerald said the government needed to better communicate all aspects of black empowerment and that the issue of equity was not predominant.
Other elements of BEE include encouraging more procurement from black companies and training for blacks.
South Africa President Thabo Mbeki said some investors had got the mistaken impression that stakes in companies would be seized by the government.
"It comes across that as we are likely to seize, to nationalise 20 percent of the company, and just hand it over to somebody else instead of saying this participation would be paid for at fair market prices," he said.
"There is no seizure or nationalisation ... or a threat to the security of investments," he said.
The IIC -- which also involves Independent News & Media Chairman Sir Tony O'Reilly, and Juergen Schrempp, chairman of DaimlerChrysler -- meets twice a year to advise the government on ways to raise investment and economic growth.
The council urged the government to work more "vigorously" to raise the level of economic growth by actively marketing its comparative advantages over countries competing for foreign investment.