Busting some BEE myths
BEE deals — the surprising truth
The first detailed analysis of the benefits of empowerment deals shows that R52bn has flowed to poor South Africans
The much-touted notion that black empowerment deals have only benefited a handful of politically connected elites is dead wrong. This emerges from a new study by research house Intellidex, which tracked money that flowed from BEE deals done by the top 100 companies on the JSE. It found that R52bn has gone to charities. Of this, R32.6bn has ended up as endowments in 27 foundations that were created through the deals. Another clear implication of the research is that SA is becoming more like the US, with a philanthropy sector dominated by large endowments. Earlier research had found that 16% of the R317bn in value created by these deals by the end of 2015 had been directed to public benefit entities such as community trusts. Far from propping up elites, much of this R52bn has gone to the poorest of the poor. As the BEE deals matured, they created R32.6bn in new endowments, which were transferred to foundations and meant to provide ongoing benefits. In most cases, these assets were in ...
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