courting racial unrest if more blacks are not encouraged to take up senior positions in the Island's top companies.

"Unless Bermuda addresses this issue, it's going to blow up in your face,'' predicted Dr. Mohale Mahanyele, who is the executive chairman and chief executive officer of South Africa's largest black-owned business, National Sorghum Breweries Ltd., ZA.

Dr. Mahanyele, a friend of African National Congress leader Nelson Mandela's who once spent 13 months in solitary confinement in his country as a political detainee, said he found it "strange'' that so many blacks were in Government yet so few held high corporate positions.

While he is particularly impressed with the number of black women in Government posts in Bermuda, he said: "There's almost a significant absence of black males in your corporate sector.

"Institutionalised racism and also sexism is extremely difficult to wipe out and there may be a need in time for Bermuda's Government to fund policies to encourage businesses to open up its opportunities to all people.'' Dr. Mahanyele was in Bermuda last week to lay the groundwork for the incorporation of an investment company on the Island which will be used to attract foreign money for black businesses in South Africa.

Although he was here for only a short period, he said that was enough for him to spot the tell-tale signs of racial unrest.

"I could see the rage in the faces of young black people: it was the same look that I know from South Africa,'' he said. "Unless their resentment and frustration at the lack of blacks in the commercial world is deliberately addressed, your country runs a danger of having a society hit by racial conflagration.'' More leading members of the black community must stand up and voice the concerns of their people, much in the way that Nelson Mandela has done in his homeland, said Dr. Mahanyele.

"You must encourage blacks to voice their frustrations,'' he said. "There must be voices which tell white business industries that it's not good to preclude blacks from high corporate positions. If these issues are kept below the table then these things will spill in the wrong ways.'' Dr. Mahanyele called for "a spirited effort to educate blacks and give them challenging jobs'' both in South Africa and Bermuda, countries which he said share the similarity of a racially mixed population.

Bermuda is in a better position to overcome its racial problems because there is virtually no unemployment, unlike the jobless rate in south Africa which he said was over 40 percent.

While being interviewed by The Royal Gazette , Dr. Mahanyele broke off to take an urgent telephone call from South Africa which carried news that he is set to play an important role in ensuring that next year's general election is run as fairly as possible.

One of the most important considerations for South Africa is how to get the country through this transitionary period in its history with as little violence as possible, he said.

"We believe the violence is a third force factor perpetrated mainly by the white Police,'' he added. "The perception that the black on black violence is a key issue is extremely misleading.'' He forecast that the African National Congress, which he called "the Government in waiting'', would win at least 60 percent of the popular vote.

Dr. Mahanyele described ANC leader Nelson Mandela as "one of the most respected and very honourable statesmen in the world today''.

"For a man to spend over 30 years in jail and come out without any antagonism and hatred and preach peace and non-racial tolerance...it takes a very noble person to do that,'' he said.

"The world has still to appreciate the role of Nelson Mandela in South Africa. He's a very rare type of person.'' Once South Africa has a united Government acceptable to the country itself and to the outside world, he predicted that investment will flow into an area rich in natural resources.

His company looked upon Bermuda as the gateway to European and North American investors, "much in the same way that South Africa is the gateway to Africa'', he said.

National Sorghum Breweries, which manufactures beer, health foods and cold drinks, is owned by 10,000 black shareholders, employs 3,500 people and has an annual turnover of $200 million after only three years in business.

"In South Africa, up until fairly recently, blacks were almost completely precluded from forming companies and being involved in many sectors of the economy,'' he said. "The education system still trains blacks mainly for manual labour.'' His company could not accept "white'' money because it would lead to suspicion among young blacks, who look upon the firm's black bosses as role models, he said.

"The foreign investor comes in with a clean bill and does not carry that baggage,'' said Dr. Mahanyele. "That is why a company in Bermuda to attract foreign investment is so important to us.'' The Bermuda-based entity is being set up with the help of local law firm Milligan-Whyte and Smith.

Dr. Mahanyele said Bermuda has already gone through many of the racial problems that South Africa is currently experiencing.

He added: "People have to understand that there can be no world which is just for whites, just as there can never be a world only for blacks.'' Mr. Mohale Mahanyele.