Is the BEE party over?
A recent survey shows that support for broad-based black economic empowerment policies is waning.
The Social Research Foundation's poll asked registered voters ahead of the election last year what their BEE policy preferences were.
Participants across all race groups, education levels, and party affiliations strongly agreed with the statement that there should not be race-based appointments within government, with officials chosen on merit.
They also strongly agreed across lines of race, education, and party affiliation that race-based procurement policies in the public service must be removed so that all tenders are issued on merit.
Finally, a significant majority of registered voters- across lines of race, education, and party affiliation - said they would prefer businesses to operate freely regardless of the race of the owners so long as the business pays taxes and creates employment. The poll was done in April with 1 835 people taking part. The results were released in September.
It should be of no surprise that participants felt that way. After three decades, inequality remains a massive issue, despite the implementation of the B-BBEE policy in 2004 that was meant to create an equitable platform for black empowerment and generational wealth for citizens classified as black, coloured, Indian, and Chinese.
Economic growth has slumped, unemployment figures are out of control and poverty is deepening.
According to the 2019 land audit, white people, who account for 7.3% of the population, still own 75% of rural land and 72% of urban land. Poverty among Africans was at 64.2% just before the Covid-19 pandemic, 1% among white people, 39% among black people and 6% among people of Indian descent.
According to the last Employment Equity Commission report, white people continue to dominate all levels of upper-level employment, accounting for 65% of top management and 59% of middle management. White people still own the lion's share of the country's wealth.
With this in mind, Friday Briefing this week considers whether B-BBEE remains an effective policy to achieve equity and equality. And if not, what should replace it?
We have a submission from the Social Policy Initiative's Duma Gqubule, who explains why he thinks it is not time to end BEE, despite its failings.
In-depth writer Muhammad Hussain spoke to political economist and author Moeletsi Mbeki on the issue. He argues that BEE should be done away with as it has created a parasitic class that lives off established businesses, but is not creating new enterprises.
Wits University's Dr Lumkile Mondi writes that the ball is firmly in the court of the national government unity to create new polices that foster development and growth after economic policy choices of the ANC and B-BBEE implementation destroyed commuter rail services, road infrastructure, electricity supply, schools, libraries and many livelihoods.
Kganki Matabane, CEO of the Black Business Council, argues that rather than getting rid of B-BBEE, its implementation must be accelerated to ensure that the majority plays a meaningful role in the economy and safeguards our democracy.
Finally, the South African Institute of Race Relations' Gabriel Crouse details why he thinks the sun has set on BEE.
Hopefully the contributions give a better perspective on whether the BEE party should be over or not.
Best,
Vanessa Banton
Opinions editor.
Rewriting the rules: The urgent need for a new wave of black economic empowerment
BEE has become like an exam that is too easy to pass, and companies have found ways to game the system. The empowerment rules need to be rewritten, argues Duma Gqubule.
Q&A with Moeletsi Mbeki: 'The purpose of black economic empowerment was to sow division'
Political economist Moeletsi Mbeki is adamant that BB-BEE and race-based policies should not exist. Mbeki told Muhammad Hussain in an interview hat the ANC has failed to account for discriminating against other previously disadvantaged groups.
Illusion of empowerment: How ANC's B-BBEE policies failed black majority
While deepening inequality, unemployment and poverty cannot be attributed to B-BBEE alone, Lumkile Mondi writes B-BBEE had a huge influence and impact on the policy choices of the ANC.
Thirty years on, SA still needs B-BBEE to address economic inequality. Here's why
Reality and available statistics clearly demonstrate South Africa is extremely far from achieving its intended economic transformational objectives and this negates any call for a sunset clause, argues Kganki Matabane.
Why it is time to let the sun set on BEE
Gabriel Crouse argues that ending BEE policies will create job opportunities, not limit it, expand the black middle class, and increase the number of super-rich black people. He explains why he thinks his premises are correct.
