03-10-2013, 03:25 PM
Midrand - Broad-based Black Economic Empowerment (BBBEE) is an integral part of South Africa’s economic policies and transformation, says President Jacob Zuma.
“(B-BBEE) is part of a broader objective of promoting inclusive growth and economic development,†said Zuma on Thursday, adding that the state will continue to intervene and promote transformation.
The President was speaking at the first ever B-BBEE Summit, hosted by the Department of Trade and Industry (dti) in collaboration with the Presidential B-BBEE Advisory Council, which is chaired by Zuma.
Zuma emphasised to the summit -- which will be held over two days -- that economic transformation was not just about big business deals for a few individuals in society. He said BEE policy should be consistently implemented across all parts of the economy to ensure maximum impact on as many South Africans as possible.
Progress made over 10 years
This year marks a decade of the existence of BEE. Dti Director-General Lionel October today said it was time to critically assess progress made since the implementation of the legislation.
The President said that throughout the decade, there have been successes and challenges in the implementation of the legislation, and that the summit was intended to reflect on what has worked and what has not worked, so as to build a truly inclusive economy.
The South African economy had expanded by 83% over the years, with total employment having increased by more than 3.5 million since 1994.
Zuma noted that there had been growth in the black middle class. He said although progress had been achieved with BEE, the country still faced unacceptable levels of poverty, inequality and unemployment.
Income parity, in particular, remained skewed in terms of race.
Progress made in terms of BEE transactions, according to National Treasury, was that over R600 billion in BEE transactions have been recorded since 1995.
However, there was a need to bridge the gap between the poor and the working class, with the average annual African households income at R60 613 and that of white households at R365 164. There were still unacceptably high levels of poverty, inequality and unemployment.
Zuma encouraged the growth of SMMEs that are owned by black people, women, youth and people with disabilities.
The dti’s Black Business Supplier Development Programme has, since its inception in 2010, approved 2 128 applications to the value of R797 million, with a total 1 213 applications approved in 2012/13 for the support of black owned SMMEs.
The National Empowerment Fund (NEF), which is mandated to grow black economic participation, has approved over 500 transactions worth over R5 billion to black empowered businesses across the country.
Review of BEE Act
Following the recession caused by the global financial crisis in 2009 -- which led to a considerable decline in companies’ contributions to BEE -- a review of the BEE Act commenced in 2011 to tighten up the Act and address challenges such as fronting.
The passing of the B-BBEE Amendment Bill by the National Assembly in June was a huge step forward in promoting transformation. B-BBEE’s review by government was to align it to other legislation such as the New Growth Path, among others.
Zuma condemned the act of fronting, calling it unforgivable.
“It distorts our empowerment picture, giving an impression of progress where there is none,†Zuma told the room full of delegates, ranging from government officials and trade unions representatives, among others.
The President said that business training was crucial so that emerging entrepreneurs can gain confidence and expand beyond ownership to become industrialists.
Zuma said the State would continue to support empowerment.
“The State will continue to intervene and promote transformation,†said Zuma.
Economic Development Minster Ebrahim Patel and Trade and Industry Minister Dr Rob Davies were among those who attended the first day of the summit. – SAnews.gov.za
“(B-BBEE) is part of a broader objective of promoting inclusive growth and economic development,†said Zuma on Thursday, adding that the state will continue to intervene and promote transformation.
The President was speaking at the first ever B-BBEE Summit, hosted by the Department of Trade and Industry (dti) in collaboration with the Presidential B-BBEE Advisory Council, which is chaired by Zuma.
Zuma emphasised to the summit -- which will be held over two days -- that economic transformation was not just about big business deals for a few individuals in society. He said BEE policy should be consistently implemented across all parts of the economy to ensure maximum impact on as many South Africans as possible.
Progress made over 10 years
This year marks a decade of the existence of BEE. Dti Director-General Lionel October today said it was time to critically assess progress made since the implementation of the legislation.
The President said that throughout the decade, there have been successes and challenges in the implementation of the legislation, and that the summit was intended to reflect on what has worked and what has not worked, so as to build a truly inclusive economy.
The South African economy had expanded by 83% over the years, with total employment having increased by more than 3.5 million since 1994.
Zuma noted that there had been growth in the black middle class. He said although progress had been achieved with BEE, the country still faced unacceptable levels of poverty, inequality and unemployment.
Income parity, in particular, remained skewed in terms of race.
Progress made in terms of BEE transactions, according to National Treasury, was that over R600 billion in BEE transactions have been recorded since 1995.
However, there was a need to bridge the gap between the poor and the working class, with the average annual African households income at R60 613 and that of white households at R365 164. There were still unacceptably high levels of poverty, inequality and unemployment.
Zuma encouraged the growth of SMMEs that are owned by black people, women, youth and people with disabilities.
The dti’s Black Business Supplier Development Programme has, since its inception in 2010, approved 2 128 applications to the value of R797 million, with a total 1 213 applications approved in 2012/13 for the support of black owned SMMEs.
The National Empowerment Fund (NEF), which is mandated to grow black economic participation, has approved over 500 transactions worth over R5 billion to black empowered businesses across the country.
Review of BEE Act
Following the recession caused by the global financial crisis in 2009 -- which led to a considerable decline in companies’ contributions to BEE -- a review of the BEE Act commenced in 2011 to tighten up the Act and address challenges such as fronting.
The passing of the B-BBEE Amendment Bill by the National Assembly in June was a huge step forward in promoting transformation. B-BBEE’s review by government was to align it to other legislation such as the New Growth Path, among others.
Zuma condemned the act of fronting, calling it unforgivable.
“It distorts our empowerment picture, giving an impression of progress where there is none,†Zuma told the room full of delegates, ranging from government officials and trade unions representatives, among others.
The President said that business training was crucial so that emerging entrepreneurs can gain confidence and expand beyond ownership to become industrialists.
Zuma said the State would continue to support empowerment.
“The State will continue to intervene and promote transformation,†said Zuma.
Economic Development Minster Ebrahim Patel and Trade and Industry Minister Dr Rob Davies were among those who attended the first day of the summit. – SAnews.gov.za