scholarly journals Black Economic Empowerment, Barriers to Entry, and Economic Transformation in South Africa

2021 ◽  
pp. 189-212
Author(s):  
Thando Vilakazi ◽  
Teboho Bosiu
Keyword(s):  
South Africa ◽  
Structural Transformation ◽  
Relevant Literature ◽  
Economic Transformation ◽  
Economic Empowerment ◽  
Barriers To Entry ◽  
Limited Impact ◽  
Black Economic ◽  
Black Economic Empowerment

One of the key challenges of South Africa’s democratic project has been supporting the effective participation of the previously excluded black majority in the economy. The broad-based black economic empowerment (BBBEE) policy, as the primary tool employed to drive racial transformation, is assessed and found to have had a limited impact, although there has been some progress. The chapter considers the link between structural transformation and black economic empowerment in three key parts. First, relevant literature is drawn on to build the argument that inclusion matters for structural transformation. Second, is an examination of the factors that have underpinned the challenges with the implementation of BBBEE to open up the economy for broader participation, including its limited focus on key barriers to entry, and the implications for structural transformation in South Africa. Third, the chapter presents a case study based on a survey of applicants under the government’s ‘black industrialists scheme’ as a critical evolution from, and alternative to, the approach followed with BBBEE, as it is able to contribute to both racial and structural transformation of the economy. The chapter concludes with a reflection on the roles of black economic empowerment and the black industrialists scheme, barriers to entry, and structural transformation of the economy.

Black Economic Empowerment, ICT, and Preferential Public Procurement in South Africa

2013 ◽  
pp. 1164-1185
Author(s):  
Karunanidhi Reddy ◽  
Renitha Rampersad
Keyword(s):  
South Africa ◽  
Black People ◽  
Public Procurement ◽  
Economic Transformation ◽  
Economic Empowerment ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Constitutional Right ◽  
The Government ◽  
Procurement System

Broad-based black economic empowerment has been a central part of the South African government’s economic transformation strategy. The main purpose of BEE is to increase the number of black people that manage, own, and control the country’s economy, and as a result, to reduce income inequalities and to contribute to economic transformation in South Africa. During apartheid in South Africa, the government procurement system favoured large, established businesses and made it difficult for newly established businesses to participate in the procurement system. This chapter gives an overview of the Black Economic Empowerment policy as a means to achieve socio-economic transformation in South Africa by providing preferences for Historically Disadvantaged Individuals (HDIs) and small businesses, when making procurement decisions. It also examines how procurement is used as a policy tool by government while simultaneously ensuring that it does not contradict the constitutional right to equality. The chapter also explores the implications of the Preferential Public Procurement Framework Act (Act 5 of 2000) and the latest procurement regulations. Finally, it discusses the use of ICT and the vital role it plays in preferential procurement in South Africa.

scholarly journals Analysis of economic transformation intervention in South Africa - the CA charter

2016 ◽  
Vol 7 (3) ◽  
pp. 17-24 ◽  
Author(s):  
Raphael Ngcobo ◽  
Watson Ladzani
Keyword(s):  
South Africa ◽  
Black People ◽  
Transformation Process ◽  
Jel Classification ◽  
Economic Transformation ◽  
Skills Development ◽  
Economic Empowerment ◽  
Employment Equity ◽  
Black Economic ◽  
Black Economic Empowerment

The purpose of this paper is to conduct an analysis of the chartered accountancy profession sector charter with other sector charters. This is to ascertain if the chartered accountancy profession charter is a workable strategy to address economic transformation within the accountancy profession in South Africa. Desktop research method was used for this paper. Content analysis was used to analyze the chartered accountancy profession’s charters with the aim to ascertain if it is a workable strategy when compared with other sector charters to address the limitation of growth of black people in the chartered accountancy profession. The analysis of the selected sector charters shows that the chartered accountancy sector is committed to economic empowerment in South Africa. This sector has, however, set aggressive targets on employment equity and skills development when compared with the financial and construction sectors. This analysis and comparison is useful in guiding the stakeholders within the accountancy profession in their vision to accelerate the transformation process within the profession. Furthermore, it is hoped that this paper will stimulate substantive discussions around economic transformation strategy designed by government and business to redress economic inequality in South Africa. Keywords: broad-based black economic empowerment, charters, chartered accountancy, sectors, South Africa. JEL Classification: J24, J71

Black Economic Empowerment, ICT, and Preferential Public Procurement in South Africa

2012 ◽  
pp. 254-275 ◽  
Author(s):  
Karunanidhi Reddy ◽  
Renitha Rampersad
Keyword(s):  
South Africa ◽  
Black People ◽  
Public Procurement ◽  
Economic Transformation ◽  
Economic Empowerment ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Constitutional Right ◽  
The Government ◽  
Procurement System

Broad-based black economic empowerment has been a central part of the South African government’s economic transformation strategy. The main purpose of BEE is to increase the number of black people that manage, own, and control the country’s economy, and as a result, to reduce income inequalities and to contribute to economic transformation in South Africa. During apartheid in South Africa, the government procurement system favoured large, established businesses and made it difficult for newly established businesses to participate in the procurement system. This chapter gives an overview of the Black Economic Empowerment policy as a means to achieve socio-economic transformation in South Africa by providing preferences for Historically Disadvantaged Individuals (HDIs) and small businesses, when making procurement decisions. It also examines how procurement is used as a policy tool by government while simultaneously ensuring that it does not contradict the constitutional right to equality. The chapter also explores the implications of the Preferential Public Procurement Framework Act (Act 5 of 2000) and the latest procurement regulations. Finally, it discusses the use of ICT and the vital role it plays in preferential procurement in South Africa.

scholarly journals Black economic empowerment in the Eastern Cape automotive industry: Challenges and policies

2014 ◽  
Vol 10 (4) ◽  
pp. 490-503
Author(s):  
GS Horn
Keyword(s):  
South Africa ◽  
South African ◽  
Automotive Industry ◽  
Automobile Industry ◽  
Economic Empowerment ◽  
Eastern Cape ◽  
The South ◽  
Business Skills ◽  
Black Economic ◽  
Black Economic Empowerment

Original Equipment Manufacturers (OEMs) in South Africa are under pressure to meet the Black Economic Empowerment (BEE) policies and charters of the South African government by giving BEE suppliers additional opportunities to tender. However, many BEE suppliers, due to being historically disadvantaged, experience various problems which make it difficult for them to win tenders, including lack of finances, opportunities to tender and management and business skills, and problems with quality and capacity. This paper outlines these practical problems experienced by BEE suppliers, the effects of these problems on risk and complexity in the South African automotive industry and policies that address these problems and assist BEE suppliers to become A-rated suppliers. Data for the paper was obtained from interviews with: senior employees of the AIDC involved with supplier development training; middle managers of supplier quality and development departments at the three OEMs in the Eastern Cape Province; and BEE and small suppliers identified to undergo AIDC training. The findings of the study are that unless sufficient training is given to BEE and potential BEE suppliers, supply to OEMs will remain in the hands of existing established suppliers and very little transformation will occur within the automobile industry in South Africa.

scholarly journals Regulating Against Business "Fronting" to Advance Black Economic Empowerment in Zimbabwe: Lessons from South Africa

2017 ◽  
Vol 20 ◽  
pp. 1 ◽  
Author(s):  
Tapiwa V Warikandwa ◽  
Patrick C Osode
Keyword(s):  
South Africa ◽  
South African ◽  
Economic Empowerment ◽  
Regulatory Regime ◽  
The South ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Do So

This article examines Zimbabwe’s indigenisation legislation, points out some of its inadequacies and draws lessons from South Africa’s experiences in implementing its own indigenisation legislation. Both countries have encountered challenges relating to an upsurge in unethical business conduct aimed at defeating the objectives of their black economic empowerment programmes, policies and legislation. This practice is called business fronting. However, while South Africa has succeeded in enacting a credible piece of legislation aimed at addressing this issue, Zimbabwe has yet to do so. The article points out that the failure to regulate against business fronting poses the most significant threat to the attainment of the laudable aims and objectives of the indigenisation programme and related legislation. In order to avoid becoming a regulatory regime that is notorious for not only being functionally ineffective but also for tacitly permitting racketeering in reality, the article argues for the adoption of anti-fronting legislation in Zimbabwe using the South African legislation as a model.

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