Black economic empowerment

Black Economic Empowerment (BEE) is a racially selective programme launched by the South African government to redress the inequalities of Apartheid by giving certain previously disadvantaged groups (Blacks, Coloureds, Indians, and Chinese) of South African citizens economic privileges previously not available to them under White rule. It is a form of Affirmative action. Although race is the overriding factor, it includes measures such as Employment Preference, skills development, ownership, management, socioeconomic development, and preferential procurement.

After the transition from Apartheid in 1994, it was decided by the government of the African National Congress that direct intervention in the redistribution of assets and opportunities was needed to resolve the economic disparities created by Apartheid policies which had favoured white business owners. BEE intended to transform the economy to be representative of the demographics, specifically race demographics of the country. BEE was defined in the 2001 Commission Report as follows,

"It is an integrated and coherent socio-economic process. It is located within the context of the country’s national transformation programme, namely the RDP. It is aimed at redressing the imbalances of the past by seeking to substantially and equitably transfer and confer the ownership, management and control of South Africa’s financial and economic resources to the majority of its citizens. It seeks to ensure broader and meaningful participation in the economy by black people to achieve sustainable development and prosperity."

Successful implementers of BEE also see it as a means to create economic growth in South Africa, and as vital to advance their corporate strategy.

The BEE programme was implemented starting from 2003. It was criticized for benefiting only a narrow stratum of previously disadvantaged groups, and this led in 2007 to the introduction of a modified programme called Broad-Based Black Economic Empowerment or B-BBEE.

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