ISSUES IN FOCUS - BEE

Black economic empowerment necessary, but should be capped

The ACDP recognizes the need for affirmative action to address persistent inequalities that are racially based. However we believe that there should be a sunset clause and the policy should be phased out once equality has been objectively achieved.

The ACDP is aware of the outcry from many black entrepreneurs who feel that the government's broad based black economic empowerment program is not benefiting those who are most disadvantaged. We believe that the current application of BEE by the government tends to benefit only a few established BEE companies which may be politically well-connected, without sharing the benefits and helping to develop emerging companies. This current system works against smaller BEE companies that are instructed to form consortiums with larger existing BEE companies, compelling them to partner companies which are already benefiting from tenders.

We believe a plan should be devised whereby once BEE companies reach a stage where they have made a certain profit and are established, other BEE companies should be given tenders, thereby enabling the growth of this sector, creating wealth and job opportunities. A BEE company that has reached a stage where it is well-established and making a profit is no longer disadvantaged and should compete on even terms in the business arena. Opportunities can then be given to developing BEE companies to grow and share in the profits

The purpose of this strategy would be to broaden the BEE base so that the same companies do not benefit from government and private sector tenders over and over again.
http://www.acdp.org.za/index.php?page=issue9