It is irrefutable that transformation is required across all aspects of South African business. However, the draft amendments to the black economic empowerment (BEE) Codes, published by the Department of Trade and Industry on March 29 and June 15 2018, undermine the legislation intended to drive this transformative process. It is clear from the draft amendments that the department is prioritising entities that have at least 51% black ownership. It has done this through two key aspects: • Entitling generic enterprises with a turnover of more than R50m to automatic BEE levels. • Amending the enterprise and supplier development element to increase the requirement and incentive to procure goods and services from entities that have at least 51% black ownership. This could be viewed as being against transformation, despite its intention to drive business to entities with majority black ownership. It is imperative to understand that, for the purposes of BEE, a very limited measurement of o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.