Black Economic Empowerment
Definition

Integrated and coherent socioeconomic process directed at transforming the economy of South Africa, such that there is a significant increase in black people who own, manage and control the economy, resulting in a significant decrease in income disparity.

The above encompasses human resource development, employment equity, preferential procurement of enterprises and economic assets.

Black Economic Empowerment Commission

Recommendations:

• Target to be set
• National Economic Empowerment Commission to be established
• Government establishes a national empowerment agency to operate alongside the finance institutions as a structure providing oversight and ensuring co-ordination of financial and other support, thereby facilitating black ownership.

Government and Private Sector Companies

• Targets to be incorporated in the sectoral charters –targets perceived by corporate as being similar to prescribed assets i.e. putting aside a certain percentage of the business to be taken by empowerment companies
• Mining industry has also suggested a scoreboard system (adopted) by government for sectors where charters are necessary. These would act as guidelines to ensure compliance with government requirements
• Government proposes an advisory body instead of an institution.

Black Economic Empowerment Commission-Government Consensus

• Lack of capital Injection into BEE
• Lack of focus and overarching strategic framework
• Necessity for enabling empowerment legislation

Important notes

• Black business complains that existing agencies expected to assist black companies are ineffective –government reviewing all its institutions
• According to government policy document, R2.2-bn allocated for empowering initiatives for 2002- 2003. This support are Khula, Ntsika, IDC, LandBank and DBSA
• Trevor Manuel in his budget speech said R10bn would be allocated to empowerment.