Black Economic Empowerment (BEE), also known as Broad-Based Black Economic Empowerment (BBBEE), is a policy framework implemented in South Africa with the aim of addressing the historical economic imbalances caused by apartheid and promoting the economic inclusion of previously disadvantaged groups, particularly black South Africans.
BEE was established as a tactic to reshape the South African economy and encourage black people, communities, and enterprises to participate in a range of industries. The policy framework includes numerous programmes, laws, and rules designed to advance equality, accessibility, and opportunities for black people in the nation.
The key objectives of Black Economic Empowerment include:
- Ownership: Encouraging black individuals and communities to acquire ownership stakes in businesses and assets.
- Management and Control: Promoting the appointment of black individuals in key management positions within companies and organizations.
- Skills Development: Facilitating training and development programs to enhance the skills and capacity of black employees.
- Employment Equity: Ensuring fair representation and employment opportunities for black individuals in the workforce.
- Preferential Procurement: Encouraging the sourcing of goods and services from black-owned businesses and suppliers.
- Enterprise Development: Supporting the growth and development of black-owned businesses through financial and non-financial assistance.
- Socioeconomic Development: Promoting initiatives that contribute to the social and economic upliftment of black communities.
Businesses operating in South Africa must abide by BEE legislation, which includes reporting on their compliance with BEE and getting BEE certifications. BEE compliance is frequently evaluated using a score system that compares a company’s performance against a number of different criteria.
The South African government periodically examines and modifies the policy framework to guarantee its efficacy in tackling economic inequities and promoting diversity. The specific rules and restrictions of BEE have evolved over time.