1. The South African Government is mandated to effect redress in the interests of equity, as embodied in the Constitution of the Republic of South Africa, 1996 (Act no. 108 of 1996). The Constitution, 1996 laid the foundation for a coherent and an inclusive economy of all its citizens. Section 9 of the Bill of Rights, in the Constitution, promotes equality in all facets of life, inclusive of the economy. An inclusive economy will only be possible if the South African economy builds on the full potential of all persons and communities across the length and breadth of our Country.
The Broad-Based Black Economic Empowerment (B-BBEE) Act, 2003 (Act No. 53 of 2003), as amended, defines ‘broad-based black economic empowerment’ as: “the viable economic empowerment of all black people, in particular women, workers, youth, people with disabilities and people living in rural areas, through diverse but integrated socio-economic strategies that include, but are not limited to -
(a) increasing the number of black people that manage, own and control enterprises and productive assets;
(b) facilitating ownership and management of enterprises and productive assets by communities, workers, co-operatives and other collective enterprises;
(c) human resource and skills development;
(d) achieving equitable representation in all occupational categories and levels in the workforce;
(e) preferential procurement from enterprises that are owned or managed by black people; and
(f) investment in enterprises that are owned or managed by black people”.
(2) The introduction of ‘broad-based’ criteria is intended to ensure that the impact of policy is not confined to opportunities only for black entrepreneurs. The impact of policy on living standards (including persons living in poverty) and on employment (measured by the quality and quantity of jobs), are therefore also relevant.
A number of broad-based investment vehicles addresses socio-economic development matters such as
The Department is currently undertaking research that can assist to quantify the impact of broad-based BEE policies on the above.
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