- The Broad-Based Black Economic Empowerment (BBBEE) Advisory Council has been appointed by the president
- President Cyril Ramaphosa said economic transformation and economic growth are intertwined and cannot be without each other
- He added that not only is black economic empowerment moral, but it also makes business sense
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PRETORIA - President Cyril Ramaphosa announced the names of those who have been appointed to lead the Broad-Based Black Economic Empowerment (BBBEE) Advisory Council.
The group will take on the responsibility of economic reconstruction and recovery in the wake of the Covid-19 pandemic.
The BBBEE act will be in action for two decades next year and Ramaphosa said the commitment to entrench and deepen economic empowerment is unwavering. He said while there has been progress, the country has gone backwards in terms of increasing black management control, upscaling skills development, entrenching enterprise development and broadening employment for black women and the youth. Eight of the 14 candidates on the committee are women, Business Tech reported.
Ramaphosa said economic transformation and economic growth are intertwined. There cannot be one without the other.
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“By integrating transformation into the process of industrialisation, we are advancing a more inclusive growth model that shares, rather than concentrates, wealth,” he penned in a letter shared by Eyewitness News.
The president noted the improvements made to empower South Africans and said:
“As part of our drive to create a new generation of black industrialists, last year government approved R2.5 billion in new support to about 180 black industrialists in the form of loans from the Industrial Development Corporation IDC and National Empowerment Fund (NEF) and grants from the DTIC incentive scheme. Over the next three years, a further R21 billion has been committed by the IDC, NEF, and other institutions to support black industrialists.”
He said that an additional R25 billion has been committed to supporting black, women, youth and worker-owned companies. Ramaphosa added that not only is black economic empowerment moral, but it also makes business sense.
SA unhappy with comments
Social media users are not impressed with President Cyril Ramaphosa’s BBBEE notes:
“Maybe meant an integral part of achieving a 35.3% unemployment rate? Keep trying to transform an economy built for a minority to feed the majority. One doesn’t need to be Einstein to know you need to invest and expand the economy… Not transfer ownership from what already exists.”
“We last saw the fair & transparency of BEE beneficiaries BACK in 2000. Now it's all about who are you connected with. No wonder why this president is not stepping aside cos he's implicated #clencore.”
“Just open up the economy for everyone, your lockdowns caused more k*k than covid and BEE is not gonna fix that.”
“Quite the opposite, this country needs jobs, decent housing, decent schools, decent health care, electricity, water and a working economy, BEE cannot deliver that.”
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“BEE must be scrapped nothing good came out of it.”
“Yes, Broad-Based Economic (non colour specific) BBEE can not be used as a carrot to gain votes. A real action plan to create jobs, root out corruption and increase ALL South African’s value in terms of jobs and livelihood hood is key. Cyril call me to discuss.”
The DA's John Steenhuisen is adamant that BBBEE policy isn't working
In a related matter, Briefly News reported the Democratic Alliance's (DA) leader John Steenhuisen has said that Broad-Based Black Economic Empowerment is not working for South Africa. Steenhuisen insists that the policy is not doing anyone any favours as black households are poorer than when it was first introduced.
"We have to accept that it has been a failure and black households are now 10 percent poorer than they were at the commencement of it and unemployment has jumped up dramatically," said Steenhuisen.
He added that more people in South Africa are living in poverty and that should be an indicator that the policy is not working. Steenhuisen called the policy "narrow-focused".
Source: Briefly News