Pretoria:Minister in the Presidency Khumbudzo Ntshavheni reaffirmed the significance of the Broad-Based Black Economic Empowerment (BBBEE) policy as a crucial tool for addressing the injustices of Apartheid.
According to South African Government News Agency, Ntshavheni highlighted that BBBEE is not only a constitutional obligation under section 9(2) but also a means by which 3.4 million black South Africans have risen to a middle class their parents were barred from, with a combined spending power of R400 billion annually.
The policy, as defined by the Broad-Based Black Economic Empowerment Amendment Act, aims to empower all black people, particularly women, workers, youth, people with disabilities, and those in rural areas, by increasing their participation in management, ownership, and control of enterprises and productive assets.
Through initiatives like the Youth Employment Service, which operates under the B-BBEE framework, 240,000 young people, more than half of whom are women, have received a year's paid work, earning R15 billion. Additionally, global companies participating in Equity Equivalent Investment Programmes (EEIP) have created over 2,000 jobs, supported 87 black-owned businesses, and provided training for more than 2,500 people.
Ntshavheni assured that these advancements are not at the expense of white South Africans, who continue to prosper, but stressed that 23.1 million black South Africans remain excluded from economic prosperity, with significant income disparities still present.
She clarified that B-BBEE is not a precondition for investment in South Africa, applying mainly to sectors like mining and ICT where state licenses are required. Multinationals whose policies prevent them from selling local equity can comply through EEIPs.
Ntshavheni emphasized the country's commitment to non-discrimination and fair market access for all investors. She noted that while South Africa welcomes foreign investment, it seeks partners who contribute to building local processing, beneficiation, and manufacturing capacity, ensuring that growth benefits all citizens and is sustainable.
