BBBEE has been a success – Rob Davies

2013-10-03 11:26

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

While broad-based black economic empowerment (BBBEE) was initially not effective nationally, it has been a success, Trade and Industry Minister Rob Davies has said.

This was according to research done on BBBEE, which aimed to empower black businesses and citizens who were previously disadvantaged owing to apartheid.

The system had been in place in the country for the past 10 years.

“Achieving broad-based black empowerment was a political imperative ... and a matter of equity,” said Davies today.

“It has also been an economic imperative.”

Davies was speaking at The New Age’s business breakfast in Midrand.

Later today, a summit aimed at scrutinising the last decade of the system was scheduled to take place.

Davies said efforts were in place to improve the system.

He acknowledged that they still faced several problems, including verifying the BEE levels of companies and “fronting”.

Fronting referred to companies that fraudulently claimed to be black-owned, but were not.

A commissioner would now be appointed to receive such complaints, and achieve solutions to these complaints or refer the matter to criminal courts.

Davies said they had also seen a shortage of black industrialists in the country.

The next step for development in BBBEE would be grooming more black industrialists.

Sandile Zungu of the BBBEE presidential advisory council, who was on the panel at the briefing, agreed that transformation was needed in the sector.

A lot of black people who wanted to go into industrial businesses had questions on how to access capital, said Zungu.

He suggested that more mentorship programmes be introduced.

Davies said amendments had been made to the codes of good practice and these were to be published in the Government Gazette next Friday.

Among the changes set to be implemented, small businesses and enterprises would be exempt from paying thousands of rands to acquire BBBEE verification certificates.

Previously, small businesses paid around R30 000 to R40 000 to get their verification status, said Davies.

KIO Advisory Services analyst Duma Gqubule, who was also on the panel, said while they agreed that BBBEE had been successful, it was disappointing that changes were only being made now.

“It has taken us too long to get to the phase where we are now,” he said.

Gqubule said, as analysts, they recognised the loopholes in the system a while ago.

“From day one, a system to monitor BBBEE should have been employed,” he said.

Zandile Tshabalala, also of the presidential advisory council, said a serious effort was needed by black leaders to make even more progress.

“It requires bold leadership,” she said on the debate, broadcast live on SABC2.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.