South Africa was engaged in a racially segregated system called Apartheid from 1948 until 1994, where one’s race determined social, economic and political advantages and/ or disadvantages.
In 1994, the first democratic government was elected in South Africa. This government implemented Broad-Based Black Econoic Empowerment (B-BBEE) in 2003/2004 as a racially selective program initiated to empower those previously disadvantaged groups.
The B-BBEE Codes of Good Practice perpetuate in 2007 as an outline for the relevant policy and legislation. Mechanisms were thus developed in order to regulate the policy and legislation.
B-BBEE is generally supported by people harbouring 2 schools of thought, those who believe in its cause, that it is the right thing to do in terms of the injustices of the past and those who recognise that it is of strategic importance and that it makes business sense to engage in its objectives.
B-BBEE has a monstrous influence on how business is conducted in South Africa. The level that one achieves as a result of engaging in compliance has a positive impact on the relevant participant’s ability to trade. Such influence is either direct or indirect and affects the main stream economy as such. It is in this way that the programme aims to level the inequalities of the past.
ABOUT THE AUTHOR:
Tamara Jooste is an admitted attorney who joined SEESA in January 2015. She has experience inter alia in civil litigation, public, estates and labour law.