What has broad-based black economic empowerment (BBBEE) got to do with the stock exchange? Not much if the traditional stock exchange model is the yardstick. However, BBBEE is essential for SA’s long-term political stability. In our diverse society, cohesion is dependent on the expectation that the poor black majority can look forward to a stake in national wealth. Full participation in the economy must be assured. Particularly important is access to all the engines of wealth creation. One mechanism for building wealth is the stock exchange. Unfortunately, the traditional stock exchange is frequently categorised as a bastion of white monopoly capitalism. This point was again underscored with the MTN Futhi deal. The bankers and vendors who designed the deal insisted on a three-year ban on trading in the new BBBEE shares despite new stock exchanges such as ZAR X being licensed by the Financial Services Board (FSB). How can you empower anyone by imposing limits and restrictions? By the...

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