EU: To BEE or not to BEE
The vagueness of legislation involving preferential procurement and empowerment has serious implications for many businesses, and the scope of the regulations is not always clear
The EU Chamber of Commerce & Industry in Southern Africa says the tricky job of interpreting broad-based black economic empowerment (BBBEE) policies and the costs of implementing them are among the top challenges for European investors in SA. It says members report a growing emphasis on ownership over other aspects of policy, such as supply chain or skills development, and this is "compromising existing operations". "An increasing number of tenders by state-owned enterprises (SOEs) in SA include a requirement of 51% black ownership for their suppliers," says Stefan Sakoschek, the chamber’s national executive director. He says the chamber has been told that "such a discretionary measure lacks sound legal basis". That’s because it requires pre-approval from the department of trade & industry (DTI), based on studies of skills levels and other market dynamics. EU companies account for more than 500,000 jobs, direct and indirect, in SA. The 27-member EU bloc is SA’s largest trading partn...
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.