Are the black economic empowerment (BEE) codes of good practice here to stay or have the stringent new regulations paved the way for their early demise?
FTW has heard rumblings that a number of businesses are simply choosing not to comply, with some experts suggesting BEE policy be replaced with an alternative that focuses more on skills development.
“It’s time to call a halt to BEE, which needs to be replaced by a new focus on economic empowerment for the disadvantaged (EED). Instead of breaking down property rights in pursuit of a socialist nirvana, EED would emphasise all the right ‘Es’, from economic growth and excellent education to employment and entrepreneurship,” said Anthea Jeffery, head of policy research at the Institute of Race Relations.
“The new codes, which make ownership a priority element for large and small businesses, are seen by many as just another ‘stick’ for the government to leverage against business,” said one business owner contacted by FTW. He questioned the efficacy of the codes and whether they could make a real difference to the economically disadvantaged or whether they could actually end up hurting South Africa’s already fragile economy.
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FTW pick: 'It’s time to call a halt to BEE’
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