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The Broad-based black economic empowerment, or B-BBEE, is a strategy to ensure all South Africans can meaningfully participate in the mainstream economy. The strategy stresses a BEE process that is associated with growth, development, and enterprise development, and not merely the redistribution of existing wealth.

[Source: Department of Trade and Industry (DTI)]

BEE Objective

Through its BEE policy, the government aims to achieve the following objectives:

- Empower more black people to own and manage enterprises. Enterprises are regarded as black-owned if 51% of the enterprise is owned by black people, and black people have substantial management control of the business.

- Achieve a substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises.

- Promote access to finance for black economic empowerment.

- Empower rural and local communities by enabling their access to economic activities, land, infrastructure, ownership and skills.

- Promote human resource development of black people through, for example, mentorships, learnerships and internships.

- Increase the extent to which communities, workers, co-operatives and other collective enterprises own and manage existing and new enterprises, and increase their access to economic activities, infrastructure and skills.

- Ensure that black-owned enterprises benefit from the government’s preferential procurement policies.

- Assist in the development of the operational and financial capacity of BEE enterprises, especially small, medium and micro enterprises (SMMEs) and black- owned enterprises.

- Increase the extent to which black women own and manage existing and new enterprises, and facilitate their access to economic activities, infrastructure and skills training.

BEE Strategy

The BEE strategy document outlines the more comprehensive and focused strategy of the BEE process.

- The strategy consists of a policy statement and a statement of the policy instruments that government uses consistently and predictably.

- These include the formalisation of partnerships and ‘charters’ with the private sector; the use of a ‘balanced scorecard’ approach for gauging success; and, an Act that allows for the formalisation of guidelines and codes and the establishment of an Advisory Council.

- Several of these instruments are elaborated on in appendices to the strategy. In addition, new financial support measures are introduced, and existing financial support is better aligned with the strategy.