What You Need To Know About BEE In South Africa

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Broad-based Black Economic Empowerment (B-BBEE) is an explicit commitment by the South African government to promote economic transformation and enhance the economic participation of black people (African, coloured and Indian people who are South African citizens) in the South African economy.


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Broad-based Black Economic Empowerment (B-BBEE) is an explicit commitment by the South African government to promote economic transformation and enhance the economic participation of black people (African, coloured and Indian people who are South African citizens) in the South African economy.

The government intends to achieve this by including previously disadvantaged individuals into ownership and management of companies and by promoting local economic development through empowerment schemes.

It is an affirmative action policy adopted by South Africa to promote greater economic transformation and to advance the economic participation of black people. The primary goal of BEE is to reduce and ultimately achieve the eradication of economic disparities between racial groups, specifically between black and white people, in business and employment.

In order to increase ownership and control over South Africa's economy, a BEE scorecard system was established in order to determine who is eligible under the non-discriminatory clause that everyone should have equal opportunity.

Key points of BEE legislation include the disclosure of information on the racial composition of businesses', South African Workforces and their boards, the transfer of ownership to black people, and access to government procurement.

It is important for business owners and market participants to understand how these policies affect their operations and capital requirements so that they can achieve their full potential.


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