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

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.

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

Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad ◽

10.17159/1727-3781/2017/v20i0a735 ◽

2017 ◽

Vol 20 ◽

pp. 1 ◽

Cited By ~ 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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The interrelationship between the South African private equity industry and black economic empowerment

Corporate Ownership and Control ◽

10.22495/cocv5i3c3p1 ◽

2008 ◽

Vol 5 (3) ◽

pp. 328-334

Author(s):

Jakobus Daniël van Heerden

Keyword(s):

South African ◽

Private Equity ◽

Driving Forces ◽

Personal Communication ◽

Transformation Process ◽

Economic Empowerment ◽

The South ◽

Black Economic ◽

Black Economic Empowerment ◽

The Relationship

This paper investigates the relationship between the South African private equity industry and government’s black economic empowerment (BEE) legislation. As the private equity industry of South Africa was formalised only in 1999, literature and data regarding the industry is limited. The research is therefore more qualitative in nature, and is based on a combination of media and journal articles, domestic as well as global surveys, personal communication with experts in the industry and other relevant research. The study suggests that the need to earn black economic empowerment credentials is one of the major driving forces behind the growthexperienced in the South African private equity industry, and at the same time this growth leads to an accelerated BEE transformation process, resulting in an interrelationship between the industry and BEE.

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Public Interest Considerations In The South African Anti-Dumping And Competition Law, Policy, And Practice

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v14i5.9376 ◽

2015 ◽

Vol 14 (5) ◽

pp. 735 ◽

Cited By ~ 1

Author(s):

Omphemetse S. Sibanda Sr.

Keyword(s):

South African ◽

Public Interest ◽

Competition Law ◽

Economic Empowerment ◽

The South ◽

Policy And Practice ◽

Competition Analysis ◽

The Public ◽

Black Economic ◽

Black Economic Empowerment

The paper addresses the delicate issue of public interest considerations when determining anti-dumping, competition, and investment measures to balance it with the interest of other interested parties in South Africa. It is particularly argued that the South African anti-dumping legislation must be amended as to clearly mandate the consideration of public interest when imposing an anti-dumping (or safeguard measure). Also, it is argued that the foreign direct investment regime must take into account policy considerations such as black economic empowerment in the public interest. The South Africas competition legislation will be used as an example of the level of convergence that may be achieved having regard to the non-competition factors incorporated in the legislation and potential or perceived difficulties in reconciling a competition analysis with a public interest analysis.

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