‘Black Economic Empowerment’, Business and the State in South Africa

Abstract

‘Black Economic Empowerment’ (BEE) has been a major policy thrust of the democratic governments in South Africa since 1994 in attempting to redress the effects of apartheid. In this article, we explore the historical precedents to BEE in South Africa, review the different steps taken in promoting it, and assess some of its outcomes to date. We argue that BEE can take only limited forms because of the economic policy constraints in which it has been incorporated. Moreover, these forms have an increasingly managerial logic that further restricts what can be achieved. Short of a major shift in conceptions of — and policy for — BEE, meaningful ‘empowerment’ is unlikely to take place.

Conceptualising the Effect of the Black Economic Empowerment Score‐Card on IT Governance

“…Since there is really no or little indication of advancement of BEE as a frame of reference for the government to improve on the deficiencies of previously institutionalized systems to promote socioeconomic equality, Pusch (2007) suggests that other innovative and effective approaches could be drafted and implemented. This is because previous forms of BEE policy enriched a few black people, leaving the majority of black still trapped in tremendous poverty (Ponte et al, 2009;Roger andRoger 2008, Pusch 2007). In response to such criticisms, the South African government intends to advocate broad-based BEE, which is an improvement of BEE aimed at ensuring that the wealth of the country is equally spread among all citizens, rather than benefiting only the small number of the tremendously affluent black elite.…”

“…The BEE legislative framework alludes to systematic paradoxes resulting to either socio-economic and/or political connotations that on one hand presents opportunities and on the other challenges for organizations (Nieman and Bennett 2006). There are paradoxes echoed by the imperativeness for all South African organizations to adhere to BEE in order to successfully compete in South African business arena (Ponte et al, 2009 In its current form, BEE is now known as Broad-Based Black Economic Empowerment (BBBEE) to reemphasise the fact this policy is not meant to benefit only the elite minority of Blacks (Ramaphosa et al, 2009;Roger and Roger, 2008). Ramaphosa et al, (2009) affirms that BEE constraints and incentives are not unique to South Africa regardless of widely disparate circumstances where they are transpiring (Ponte et al, 2009).…”

“…There are paradoxes echoed by the imperativeness for all South African organizations to adhere to BEE in order to successfully compete in South African business arena (Ponte et al, 2009 In its current form, BEE is now known as Broad-Based Black Economic Empowerment (BBBEE) to reemphasise the fact this policy is not meant to benefit only the elite minority of Blacks (Ramaphosa et al, 2009;Roger and Roger, 2008). Ramaphosa et al, (2009) affirms that BEE constraints and incentives are not unique to South Africa regardless of widely disparate circumstances where they are transpiring (Ponte et al, 2009). In many instances, the promotion of group preferences has resulted in unanticipated consequences e.g., the racial strife such as occurred in Malaysia (Gomez and Jomo 1999).…”

“…The prime concerns is whether the contemporary BEE stratagem should entail the disempowerment of those who were previously empowered (white minority) under the apartheid era or whether it should be founded on the basis of including previously disempowered black majority with those who were formerly empowered in order that a balanced and harmonious power sharing arrangement in which all groups will ultimately benefit irrespective colour or race (Ponte et al, 2009). Habib and Padayachee (2000) despise the idea of dispossessing the already existing domineering groups, many of whom possess the skills and adequate capital that are essential to the promotion of economic growth, thus avoiding a negative effect on the domestic economy.…”

“…Black Economic Empowerment (BEE) is therefore seen as a South African government initiative meant to redress past economic inequalities and this has resulted in changes in work-related social transformation as well as performance requirements (Ponte et al, 2009). The underlying purpose of BEE is to realize a vision for economic and social prosperity for all South African citizens in a post-apartheid South Africa.…”