72-745: Black Economic Empowerment ( BEE ) is a policy of the South African government which aims to facilitate broader participation in the economy by black people. A form of affirmative action , it is intended especially to redress the inequalities created by apartheid . The policy provides incentives – especially preferential treatment in government procurement processes – to businesses which contribute to black economic empowerment according to several measurable criteria, including through partial or majority black ownership, hiring black employees, and contracting with black-owned suppliers. The preferential procurement aspect of BEE has been viewed as paradigmatic of
144-402: A parliamentary system in which the executive is dependent on and accountable to the legislature. In each province the provincial legislature is directly elected by proportional representation , and the legislature in turn elects one of its members as Premier to head the executive. The Premier appoints an Executive Council (a cabinet), consisting of members of the legislature, to administer
216-682: A parliamentary system . Legislative authority is held by the Parliament of South Africa . Executive authority is vested in the President of South Africa who is head of state and head of government, and his Cabinet. The President is elected by the Parliament to serve a fixed term. South Africa's government differs from those of other Commonwealth nations. The national, provincial and local levels of government all have legislative and executive authority in their own spheres, and are defined in
288-452: A sustainable procurement approach, whereby government procurement is used to advance social policy objectives. So-called "BEE deals" – transactions aiming to increase black ownership of large businesses – have been conducted on a large scale, with BEE transactions concluded between 1994 and 2005 valued at between R150 billion and R285 billion. The government has subscribed to an explicit policy of black economic empowerment since 1994, but BEE
360-531: A broad definition of BEE: It is an integrated and coherent socio-economic process. It is located within the context of the country’s national transformation programme, namely the RDP. It is aimed at redressing the imbalances of the past by seeking to substantially and equitably transfer and confer the ownership, management and control of South Africa’s financial and economic resources to the majority of its citizens. It seeks to ensure broader and meaningful participation in
432-464: A broader and deeper scope than mere black ownership of business. BEE was seen as proceeding along three main lines: in addition to "direct empowerment" (now including managerial as well as ownership control), BEE would also explicitly encompass human resource development ( employment equity and skills development) and "indirect empowerment" (procurement policies, enterprise development, and socioeconomic development ). Codes of Good Practice to complement
504-515: A condition of those contracts. Finally, in some sectors, the award by government of operating licenses and concessions (such as concessions to export) is conditional on the licensed entity meeting certain BBBEE criteria – for example, in terms of the Mineral and Petroleum Resources Development Act , entities are eligible for mining licenses only if they are 26% black-owned. The generic BBBEE scorecard
576-529: A different, more lenient scorecard. Moreover, Exempted Micro-Enterprises (including businesses with total annual revenue below R10 million and all start-ups in their first year) are automatically given Level 4 BBBEE status. And, at the same time, primarily black-owned entities falling into either of these two categories automatically qualify for Level 1 (100% black-owned) or Level 2 (>51% black-owned) status. The BBBEE Act defines black persons as " Africans , Coloureds and Indians ," who, as of an amendment to
648-525: A federation of trade unions. This followed four years of unity talks between competing unions and federations that were opposed to apartheid and were "committed to a non-racial, non-sexist and democratic South Africa." COSATU was officially established on 1 December 1985. Among the founding unions were the affiliates of the Federation of South African Trade Unions (FOSATU), the small National Federation of Workers , and some independent unions, notably
720-402: A form of tokenism whereby entities improve their BEE status by appointing black directors, managers, employees, or suppliers, who are, in practice, discouraged or inhibited from substantially participating in or benefitting from the enterprise. Several large companies have been investigated for BEE fronting, including Netcare and MTN . The BBBEE Commission has increasingly raised concern about
792-599: A form of unjust or unconstitutional racial discrimination or " reverse racism " against whites. Some critics argue that BEE deters investment in South Africa. Although BEE is not technically compulsory (unless the business wishes to seek certain contracts or benefits, or to be listed on the JSE ), critics argue that BEE compliance increases the cost of doing business in South Africa, among other reasons because businesses may hire consultants and lawyers to help them navigate
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#1732794627076864-458: A major cause of political corruption in South Africa , with government contracts improperly awarded, at inflated prices, to politically connected " tenderpreneurs ," sometimes to the detriment of quality and service delivery. These concerns have received increased attention following revelations of state capture during the presidency of Jacob Zuma . There were, for example, allegations that BEE-related corruption had taken place at Bosasa and in
936-436: A natural ally in a campaign for treatment. We passed a formal resolution at our congress to assist and build TAC. Notwithstanding the formal alliance of COSATU with the ruling ANC party, it has been at odds with the government, calling for the roll-out of comprehensive public access to antiretroviral drugs. Abahlali baseMjondolo offered a strong statement of support to the 2010 Public Sector Worker's strike. The wheel in
1008-401: A political influence beneficial to its members." South Africa has one of the largest incidence of HIV/AIDS in the world, with a 2005 estimate of 5.5-million people living with HIV – 12.4% of the population. In 2020, around 20.6-million people in eastern and southern Africa were living with HIV. The trade union movement has taken a role in combating this pandemic. COSATU is a key partner in
1080-477: A red flag that represents the working class. The slogan on the logo is "An injury to one is an injury to all" signifies the vision the union has of social solidarity that binds the working class. In October 2004 and February 2005 COSATU sent delegations to Zimbabwe to judge conditions in that country before the 2005 Zimbabwe parliamentary elections . They were expelled from the country on both occasions. COSATU has arranged protests and border blockades against
1152-399: A system of mixed-member proportional representation , while the councils of district municipalities are partly elected by proportional representation and partly appointed by the councils of the constituent local municipalities. In each legislative body, the party or coalition of parties holding a majority of seats forms the government. The largest party not in the government is recognised as
1224-518: Is "very low if not rare," and others argue that the emigration of some skilled workers "creates opportunity" for diversifying the relevant sectors while appointing their replacements. Government of South Africa The Government of South Africa , or South African Government , is the national government of the Republic of South Africa , a parliamentary republic with a three-tier system of government and an independent judiciary , operating in
1296-569: Is as follows: The most recent versions of the codes identify ownership, skills development, and supplier development as priority elements. There are sector-specific codes defining targets specifically applicable to the agriculture, finance, defence, ICT, transport, property, forestry, construction, tourism, and media, advertising and communication sectors. The legislation's requirements for small businesses are less onerous. For example, Qualifying Small Enterprises (businesses with total annual revenue between R10 million and R50 million) are scored on
1368-512: Is black empowerment when it seems to benefit not the vast majority but an elite that tends to be recycled?" He also warned that, combined with widespread "dehumanising poverty," the system could build popular resentment against the ruling classes and between different sections of society. Pieter Groenewald , leader of opposition party the Freedom Front Plus , has called BEE an acronym for "black elite enrichment"; and John Steenhuisen ,
1440-584: Is part of an alliance with the ANC and the South African Communist Party , called the " Tripartite Alliance ". COSATU's role in the alliance has been the subject of debate, since the organisation has been critical of some of the ANC government's policies. While some affiliates have argued for greater independence from the ruling political party, others have argued that the arrangement gives COSATU
1512-669: Is that the policy has been co-opted by members of South Africa's political elite, mostly within the governing ANC, for the purpose of self-enrichment. From an early stage of BEE, analysts, extrapolating from the concept of a "patriotic black bourgeoisie," noted the likely contribution of BEE to the growth of a black capitalist class with close links to the ANC. Perhaps most prominently, several politically connected ANC stalwarts – notably Saki Macozoma , Tokyo Sexwale , Cyril Ramaphosa , and Patrice Motsepe – gained substantial wealth and influence in key sectors such as mining and finance through BEE deals. More broadly, BEE has been thought to increase
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#17327946270761584-618: The African National Congress (ANC) came to power in 1994 , the new government's priorities included redressing apartheid 's legacy of economic exclusion. Under apartheid, legislation and practice had restricted the access of non-Whites to job opportunities, capital , business and property ownership, and other forms of economic advancement, leaving vast racial inequalities in wealth and income. The new Constitution , finalised in 1996, emphasised protections against unfair discrimination and against disadvantage arising from
1656-867: The National Assembly and the National Council of Provinces ), the executive (the President , who is both Head of State and Head of Government ), and the judiciary (the Constitutional Court , the Supreme Court of Appeal , and the High Court ). All bodies of the South African Government are subject to the rule of the Constitution, which is the supreme law in South Africa. The Parliament of
1728-499: The National Union of Mineworkers . Elijah Barayi was the organisation's first president and Jay Naidoo the first general secretary. Several resolutions were passed at this first meeting that defined the aim of the federation and how the federation operates, namely: On 5–6 May 1987 a strike as part of COSATU's Living Wage Campaign was held coinciding with 1987 General Election . More than 2.5 million workers took part in
1800-569: The Treatment Action Campaign (TAC), a registered charity and political force working to educate and promote understanding about HIV/AIDS, and to prevent new infections, as well as push for greater access to antiretrovirals . In 1998, COSATU passed a resolution to campaign for treatment. "It was clear to the labour movement at that time that its lowest paid members were dying because they couldn’t afford medicines", says Theodora Steel, Campaigns Coordinator at COSATU. "We saw TAC as
1872-480: The ANC in 1997 agreed that: Though such instances may be an exception to the norm, experience in other countries has taught us that, without vigilance, elements of these new capitalist classes can become witting or unwitting tools of monopoly interests, or parasites who thrive on corruption in public office. However, in the overall, the rising black bourgeoisie and middle strata are objectively important motive forces of transformation whose interests coincide with at least
1944-494: The BBBEE Act were gazetted in two phases in 2005, setting out standardised criteria for measuring compliance with BBBEE indicators on a "scorecard"; the codes have been amended occasionally since then. At the centre of the implementation of the BBBEE Act is the "scorecard" according to which the compliance of individual businesses is measured. The Codes of Good Practice set out specific criteria (known as "targets") under each of
2016-536: The Mining Charter in 2002, both given regulatory status under the Mineral and Petroleum Resources Development Act . The Mining Charter, in particular, embraced principles later codified under BBBEE, identifying seven "pillars" of BEE (only one of which was ownership) and setting out a BEE "scorecard" for businesses. At the 51st National Conference of the ANC in December 2002, President Thabo Mbeki committed
2088-538: The Republic of South Africa is South Africa 's legislature . It is located in Cape Town , the country's legislative capital . Under the present Constitution of South Africa , the bicameral Parliament comprises a National Assembly and a National Council of Provinces . The current twenty-eighth Parliament was first convened on 14 June 2024. From 1910 to 1994, members of Parliament were elected chiefly by
2160-517: The South African Constitution as "distinctive, interdependent and interrelated". Operating at both national and provincial levels ("domes") are advisory bodies drawn from South Africa's traditional leaders. It is a stated intention in the Constitution that the country be run on a system of cooperative governance. The national government is composed of three inter-connected branches; the legislature (parliament, consisting of
2232-637: The South African white minority . The first elections with universal suffrage were held in 1994 . The President , Deputy President and the Ministers of the South African Government make up the executive branch of the national government. Ministers are Members of Parliament who are appointed by the President to head the various departments of the national government . The president is elected by parliament from its members. The third branch of
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2304-537: The World Federation of Trade Unions. By 2012 the trade union had a total of 2,191,016 members and 20 affiliated unions. Since then Cosatu experienced a large drop in membership partially due to a decline in affiliate membership numbers, between 2015 and 2022 it lost over 416 000 members. The following unions were listed by COSATU as their affiliates: On 8 November 2014, Irvin Jim , the general secretary of
2376-598: The absence of organised sources of capital, many of the black participants relied on highly-geared financing structures and special-purpose vehicles . Several BEE deals thus collapsed during the Asian financial crisis of the late-1990s. According to estimates, Black control of business had risen to about 10% of shares on the Johannesburg Stock Exchange by 1998, but, following the financial crisis, fell dramatically to between 1% and 3.8% by 2000. Meanwhile,
2448-468: The act in 2013, are South African citizens by birth or descent or were naturalised as South African citizens prior to 27 April 1994 (or would have been eligible for naturalisation prior to that date). This definition excluded ethnically Chinese citizens from becoming beneficiaries of the legislation. The government argued that, although Chinese people had been subject to discrimination under apartheid, that discrimination had been applied inconsistently and
2520-462: The act, promulgated in 2001, outlined a point system by which preference is allocated in the evaluation of public tenders – in addition to the competitiveness of a bid's price, "points" were given for the bidder's contribution to black economic empowerment. Shortly after the passage of the act, the first industry-specific BEE charters were published – the Petroleum and Liquid Fuels Charter in 2000 and
2592-469: The apartheid era with little capital and limited access to the same – may, by increasing the indebtedness of BEE beneficiaries, "encourage a willingness to cut legal corners and lapse into criminality." Detractors argue, therefore, not only that BEE beneficiaries are a small elite, but also that they tend to be a politically connected elite, comprising especially the friends and family of government and ANC officials. Critics also argue that BEE has thus become
2664-485: The central concerns leading to the reform of BEE as a "broad-based" programme in the early 2000s – remains one of the major criticisms levied against the policy. At the advent of the policy, and especially during the Mbeki presidency, the ANC was explicitly committed to promoting the development of a "patriotic black bourgeoisie " whose rise could initiate broader transformation in the economy. The 50th National Conference of
2736-578: The complexity of the codes and other regulations. In 2018, for example, as a condition for increasing investment in South Africa, the European Union requested a relaxation of BEE ownership rules, calling the targets unfairly onerous. Like the rest of South Africa's affirmative action policies, BEE – and the fact that all white citizens "feel marginalised" by it – has been linked to a brain drain of qualified workers from South Africa. However, one study notes that corporate brain drain from South Africa
2808-501: The controversial Vrede Dairy Project . At the Zondo Commission , former Bosasa executive Angelo Agrizzi implicated BEE verification agency Empowerdex in corruption, and it was later confirmed that Gupta -owned companies, implicated in substantial corruption, had secured Eskom contracts using fraudulent BEE certificates. Minister of Finance Enoch Godongwana said in 2022 that increased corruption in government procurement
2880-472: The earlier ANC RDP policy framework, on which the government policy was based. The ANC document viewed BEE initiatives as a means to "deracialise business ownership and control." As suggested by this phrase, early stages of BEE focused on promoting black ownership of large businesses. So-called BEE transactions aimed to diversify the demographics of company shareholders. However, White-owned companies entered into these transactions only voluntarily. Moreover, in
2952-467: The economy by black people to achieve sustainable development and prosperity. The Commission also proposed the passage of focused BEE legislation and the adoption of an integrated national strategy on BEE, comprising a set of simplified and coordinated guidelines and regulations applicable across the economy, to be implemented by an oversight body reporting to the cabinet. On some views, the Commission
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3024-510: The economy. The notion of a BEE elite adds to this the further accusation that BEE ownership transactions themselves disproportionately involve one small group of black businessmen, with insufficient opportunities afforded to the black population at large. Anthea Jeffrey of the Institute of Race Relations has claimed that the group of beneficiaries amounts to about 15% of the black population. The shift to broad-based BEE has led to an increase in
3096-445: The extent of the practice. In 2021, Commissioner Zodwa Ntuli said that fronting was so widespread that improved measured performance against BEE objectives might not correlate with actual improvement in the economic situation of black people. She also called for a more stringent government response to those found guilty of fronting, which is punishable by fines, blacklisting, and up to ten years' imprisonment. A notable criticism of BBBEE
3168-582: The government to drawing up a "Transformation Charter" involving a consolidated and clarified strategy on BEE. The BBBEE Act passed in 2003, under the custodianship of the Department of Trade and Industry , and commenced in 2004. The Act's stated objectives were to facilitate broad-based black economic empowerment by: During this period, under President Mbeki, the government's approach to BEE became "increasingly focused and assertive," and it became unambiguously committed to maximalist or broad-based BEE, with
3240-567: The immediate interests of the majority. They are, in this sense and in this phase, part of the motive forces of fundamental change. However, critics contend that, over two decades later, the beneficiaries of BEE, and of most BEE transactions, still comprise only a very small elite of South African society, with the vast majority of black South Africans receiving few benefits from the policy, and indeed with little progress in reducing overall poverty and inequality levels in South Africa in general. Archbishop Desmond Tutu expressed this view, asking, "What
3312-435: The importance or perceived importance of political connections to gaining state contracts and other business incentives, with the extent of inter-linkages between the state and business providing "the conditions for the possible emergence of a corrupt and nepotistic governance system." Moreover, some have suggested that the highly leveraged arrangements used to finance many BEE endeavours – necessary because most black people left
3384-463: The largest COSATU affiliate, the National Union of Metalworkers of South Africa (NUMSA), announced that the union had been expelled from the COSATU after a vote at a special central executive committee had been convened resulting in a 33–24 vote in favour of the expulsion. NUMSA was charged with violating the constitution of COSATU On 6 November 2014, an urgent legal application by NUMSA to prevent
3456-438: The leader of the opposition Democratic Alliance , has argued that BEE encourages the development of oligarchy at the expense of economic equality. A common accusation is that, despite the shift to BBBEE, BEE remains primarily geared towards ownership transactions, increasing black shareholding and directorships – and the wealth of their holders – without necessarily increasing the substantive control of black South Africans over
3528-418: The logo represents the economy. The gold colour of the wheel represents the wealth of the country. The figures pushing the wheel, consisting of two men and a woman carrying a baby, represent the challenges that workers face namely, racial and gender oppression as well as economic exploitation. These figures are black as they represent the black majorities struggle against racial oppression. The figures are holding
3600-466: The national government is an independent judiciary. The judicial branch interprets the laws, using as a basis the laws as enacted and explanatory statements made in the Legislature during the enactment. The legal system is based on Roman-Dutch law and English common law and accepts compulsory ICJ jurisdiction, with reservations. The constitution's bill of rights provides for due process including
3672-427: The number of BEE deals involving large black-owned consortia , which some commentators have suggested may have increased the scope of beneficiaries under those deals. However, with little detailed public information available about the composition of the relevant consortia, this claim has been difficult to verify. On other, non-ownership metrics, there has been positive transformation since 1994, but critics argue that
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#17327946270763744-526: The official opposition. Congress of South African Trade Unions The Congress of South African Trade Unions ( COSATU or Cosatu ) is a trade union federation in South Africa . It was founded in 1985 and is the largest of the country's three main trade union federations, with 21 affiliated trade unions. On 30 November 1985, 33 unions met at the University of Natal for talks on forming
3816-554: The pace of change has been inadequate. The Institute of Race Relations found that the number of black South Africans employed as managers had increased by 176.3% between 2001 and 2017 (compared to 32.1% population growth in that group over the same period). Yet in 2021, the Commission for Employment Equity found that white people remained dramatically over-represented in the top levels of the private sector: they filled 67.8% of top management positions, 58% of senior management positions, and 43.2% of all professionally qualified positions. As of
3888-523: The promotion of black empowerment in areas other than ownership was pursued piecemeal, especially through a series of laws including the 1998 Skills Development Act and 1998 Employment Equity Act. Amid dissatisfaction with the progress of existing initiatives, in May 1998 the Black Business Council appointed future President Cyril Ramaphosa to chair a BEE Commission. The Commission proposed
3960-703: The purposes of the BBBEE Act, as well as the Employment Equity Act. Some criticisms of BEE – particularly those about its economic effects – are difficult to disentangle from broader criticisms of South Africa's broader employment equity or affirmative action programme. This is because BEE is closely tied with that broader programme, implying affirmative action both explicitly and insofar as it provides private-sector entities with strong incentives to pursue affirmative action internally. General criticisms of affirmative action are therefore also relevant. The "narrow base of empowerment" effected by BEE – one of
4032-935: The regime in Harare . In 2016, COSATU voiced support for #ThisFlag protestors in Zimbabwe, stating "heavy-handedness of the Zanu-PF regime in dealing with perceived enemies was similar to that of Operation Restore Order/Murambatsvina in 2005." In 2020, COSATU voiced their solidarity with Palestinian peoples on 15 May ( Nakba Day ) and have linked the Palestinian right to land to COSATU's struggle against apartheid in South Africa. In 2021 Palestinians protested against an Israeli court ruling which stated that residents of Sheik Jarrah need to be evicted from their homes in Jerusalem. Israeli troops attacked Al-Aqsa during Ramadan ,
4104-490: The right to a fair , public trial within a reasonable time. The nine provinces of South Africa are governed by provincial governments which form the second layer of government, between the national government and the municipalities . The provincial governments are established, and their structure defined, by Chapter Six of the Constitution of South Africa . The provincial governments are structured according to
4176-422: The same time, in business between private entities, it is often attractive for entities to contract with entities which themselves have high BBBEE ratings, because this may boost their own BBBEE score (in the preferential procurement category of the scorecard). Entities which have won state contracts (or mining licenses) are also often required to meet certain BBBEE obligations in selecting their private suppliers, as
4248-466: The same. This was complemented by a 1997 Green Paper on Public Procurement Reform, which called for affirmative action measures in government procurement processes. The central socioeconomic policy framework of Nelson Mandela 's government was the Reconstruction and Development Programme (RDP), which did not specifically refer to "black economic empowerment". However, the term was used in
4320-416: The second quarter of 2021, the unemployment rate for white South Africans, at 8.6%, remained significantly lower than that for blacks (38.2%), coloureds (28.5%), and Indians and Asians (19.5%). The government defines "BEE fronting" as occurring whenever entities deliberately misrepresent facts about their BEE compliance. However, the phrase is most commonly used in reference to so-called "window-dressing,"
4392-414: The seven elements or pillars of BBBEE, which correspond to the seven categories on the scorecard. Each entity is measured against the scorecard to determine its BBBEE score (out of 105), which in turn is used to determine its BBBEE level. The level is published in a BBBEE certificate issued to the entity and valid for one year. BBBEE certificates are essential to securing certain incentives or contracts with
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#17327946270764464-439: The special central executive committee from being convened was postponed by South Gauteng High Court, thus allowing the meeting to take place. On 10 November 2014, 7 unions announced they were voluntarily suspending their participation in COSATU's decision-making bodies due to the expulsion of NUMSA and called for a special national congress to be convened. Irvin Jim described the expulsion as "a dark day for workers". COSATU
4536-571: The state declared themselves 'unbanned'. The COSATU congress decided in 2012 to affiliate with the class-struggle oriented World Federation of Trade Unions , while maintaining its membership within the International Trade Union Confederation . During the 2016 Congress that was held in Durban, Michael Mzwandile Makwayiba, president of COSATU affiliate NEHAWU Michael Mzwandile Makwayiba was elected President of
4608-521: The state or with other private entities. Bids by private entities for government procurement contracts are typically evaluated in terms of a 90/10 or 80/20 point system: the competitiveness of the price of the bid is evaluated 90 or 80 points, while the remaining 10 or 20 points are awarded for the bidder's BBBEE rating. A BBBEE rating can therefore determine the outcome of closely contested bids. Some state entities also set out minimum BBBEE criteria which entities must meet in order to qualify to submit bids. At
4680-493: The stay-away. On 7 May 1987, in the early hours of the morning two bombs exploded near the support columns in the basement of the federation headquarters, COSATU House. The resulting damage caused the building to be declared unsafe. At the second national congress held from 14 to 18 July 1987, the Freedom Charter was adopted by the federation after the resolution was proposed by the National Union of Mineworkers At
4752-704: The third congress held from 12 to 16 July 1989, a resolution was adopted that called on the members of COSATU to join a campaign of "sustained action" against apartheid, in the week leading up to the 1989 General Election of South Africa. On 26 July 1989, COSATU, the United Democratic Front and the Mass Democratic Movement , instigated the National Defiance Campaign, in which facilities reserved for whites were invaded, and organisation that had been banned by
4824-664: The various departments of the provincial administration. Local government in South Africa consists of municipalities of various types. The largest metropolitan areas are governed by metropolitan municipalities , while the rest of the country is divided into district municipalities , each of which consists of several local municipalities . After the municipal election of 18 May 2011 there were eight metropolitan municipalities, 44 district municipalities and 226 local municipalities. Municipalities are governed by municipal councils which are elected every five years. The councils of metropolitan and local municipalities are elected by
4896-410: Was influential in bolstering support for the broader approach ultimately taken by the government to BEE. This is what sociologist Roger Southall called the "maximalist" (now the "broad-based") approach to BEE, envisaging a more dramatic transformation of the South African economy, with redistributive objectives going beyond black ownership. According to Southall, a major force behind this shift in strategy
4968-691: Was less clearcut than that experienced by other non-white groups. For example, although Chinese people were treated as coloured under some legislation, from 1984 they were exempt from the discriminatory provisions of the Group Areas Act . In 2008, arbitrating a legal challenge by the Chinese Association of South Africa, the Pretoria High Court ruled that the South African Chinese community were "black" for
5040-419: Was one of the most significant challenges facing BEE. Critics have questioned the appropriateness and fairness of the policy's use of racial classifications , themselves inherited from the apartheid era. This broad family of criticisms encompasses a range of views, including that using race markers further entrenches their power; that race is a suboptimal proxy for economic disadvantage; and that BEE constitutes
5112-622: Was relaunched as the more comprehensive, and less ownership-focused, Broad-Based Black Economic Empowerment ( BBBEE ) programme around the time of the passage of the BBBEE legislation in 2003. However, although earlier initiatives were governed by different legislation and sets of arrangements, the underlying principles and policy are very similar, and BBBEE is often still referred to as "BEE" in common parlance. In June 2021, President Cyril Ramaphosa announced that South Africa's BEE strategy and legislation would be reviewed, especially to ensure that they are not exploited for corrupt purposes. When
5184-530: Was the growing popular perception that BEE had thus far worked to benefit only a tiny black elite, a criticism prominently voiced by the influential Congress of South African Trade Unions . The stage for the expanded BBBEE strategy was set by the Preferential Procurement Act of 2000, which sanctioned preferential treatment for historically disadvantaged groups in the distribution of state procurement contracts. The regulations accompanying
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