Regulatory uncertainty in South Africa's broad-based black economic empowerment (BBBEE) landscape interferes with investment, write Morné van der Merwe and Janine Howard.
CERTAINTY is a requirement for attracting foreign direct investment; however, certainty in the economic and legislative space in South Africa is not always forthcoming.
In recent years there has been a lack of certainty with regards to BBBEE. This is the result of inter alia changes in the regulatory framework which saw BBBEE becoming more stringent and placing, perhaps most notably, a greater emphasis on ownership.
The present Generic BBBEE Codes of Good Practice came into force in May 2015. This set in motion a scramble to align sector-specific BBBEE codes and charters with the Generic Codes of Good Practice. Most sector-specific codes were able to get drafts to the Department of Trade and Industry so as to avoid being repealed.