If the government focuses on transferring equity from one small group to another, its empowerment strategy remains an abstract concept. However, South Africa has yet to use its most valuable economic resource, its people, to generate a robust economy. In order to compete on a global level, we will have to provide all these human resources with adequate training and opportunity. The reality is that White business is already competing on a high level while Blacks must be shown preference in accessing economic facilities. Yet BEE does not exclude whites from the economy: access will not be denied but preferential treatment of Black role players will need to be pursued. Morally, white business should be willing to include the masses at a preferential level.
Black Economic Empowerment, or Broad-Based Economic Empowerment, in its entirety is not solely affirmative action, although employment equity forms part of it. Nor is it a deliberate transfer of wealth from whites to the masses. It should be understood as a growth strategy, targeting the economy’s weakest point: inequality. The economy cannot grow by excluding any part of its people and if the economy is not growing meaningful integration of our citizens cannot take place. Black economic empowerment is an important policy instrument aimed at broadening the economic base of the country further stimulating economic growth and creating employment.
The strategy is broad-based as the government would attempt to situate black economic growth empowerment within the context of a broader national empowerment strategy focused on historically disadvantaged people and particularly black people, woman, youth, the disabled and rural communities.
The policy aims at empowering more black people to own and manage enterprises. These enterprises will be regarded as black owned if 51% of the enterprise is owned by black people and have substantial management control of the business. A substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises is yet to be achieved. Lack of financing for black economic empowerment persists and should be promoted. Rural and local communities will be empowered enabling their access to economic activities, land, infrastructure, ownership and skills. Human resource development of black people, which is severely lacking, should be facilitated through mentorships, learnerships and internships.
There is obviously, a moral imperative driving this transformation to rectify the imbalance created by apartheid. Black people were prevented from legally participating in economic activities while the privilege granted to whites resulted in most of the country’s natural resources being monopolized by the minority. Inevitably, white business should initiate inclusion of Blacks into the economy at a preferential level to compensate for past economic oppression.
If South Africa is to grow its economy, it must provide for the poor and poverty should no longer be linked to Black people. Probably the most compelling reason for BEE is economic growth by empowering the labour force.
