The History of BEE in South Africa

What is BEE?Affirmative Action exclusively led to more positions
BEE refers to measures, actions or programmaticbeing filled by black candidates; BBBEE, however,
steps geared to enable meaningful participation ofstrives toward the implementation of the following
black people in the economic mainstream. It is aseven pillars:
response to our particular reality born of racial- Equity Ownership
capitalism, the fusion of apartheid with the capitalist- Management
system.- Employment Equity
Rationale for BEE- Skills Development
The BEE commission, chaired by Cyril Ramaphosa,- Preferential Procurement
and assisted by Saki Macozoma, Derek Cooper,- Enterprise Development
Patrice Motsepe, Gloria Serobe, Danisa Baloyi, Buhle- Residual Element/Corporate Social Investment
Mthethwa, Vuyo Jack, Ronnie Ntuli, Loyiso Mbabane,Of these, Employment Equity account for only 10
Imogen Mkhize, Alan Hirsch, Philisiwe Buthelezi andpercent.
Lionel October, broadly outlined BEE in a 2000 report,The first set of Codes of Good Practice, released on 1
which led to the government's implementation of BEE.November 2005, dealt mostly with Ownership and
Many companies see it not only as a moral obligation,Management. The second set was released on 20
but also as a business reality. Its aim is to incorporate aDecember 2005 and these dealt with special codes
substantial amount of skilled black workers (African,for SMMEs (small, medium and micro enterprises).
Coloured and Indian) into the workforce.The final Codes of Good Practice, which deals with
Black Economic Empowerment led to the creation ofScorecards, Small Enterprises and Skills Development,
Broad Based Black Economic Empowerment, asamongst others, were released on 9 February 2007.
many groups felt BEE did not live up to its objectives.Definitions
The government introduced the Broad Based BlackA black company is one that is at least 50.1 percent
Economic Empowerment Act 53 of 2003.owned by black people.
With BBBEE, ownership is only one of seven criteriaA black empowered company is at least 25.1 percent
upon which a company's empowerment score isowned by black groups.
calculated.The purpose of BBBEE is to createA black woman-owned enterprise is represented by
economic empowerment for the many groups whoat least 21.5 percent of black women at equity and
were not on an equal footing: all black people, women,management level.
youth, the disabled, and those in rural areas.Moneybiz, a leading African Financial Information portal,
A company's Employment Equity policy is just onebrings you all the insider news and information on BEE
way in which to measure its transformation.procedures.