1. BLACK ECONOMIC EMPOWERMENT IS A NECCESSITY
IF POVERTY, CRIME AND UNEMPLOYMENT ARE TO BE
ALLEVIATED.
Black economic empowerment as defined by the government is an integrated and coherent
socio- economic process that directly contributes to the economic transformation of South
Africa. (Robin Woolley.2009 Fact about BEE) However some people see it as apartheid all
over again but in exchanged races, I believe that it is a significant tool in fighting the
country’s socio economic problems hence it aims at redressing the imbalances of the past.
Furthermore it is important to look at the good things BEE has brought about also what it has
achieved so far. In this essay I will be looking at the aims of BEE, the policy’s strategies to
combat unemployment and poverty, the achievements of BEE in terms of minimising the
socio economic problems and the counter claim will be focused on BEE and corruption.
Black economic empowerment was implemented with the aim to bring about significant
increase in the number of black, coloured and Indian people that manage, own and control the
country’s economy as well as significant decreases in income inequalities. Research has
shown that since BEE was implemented the number of black people in power has increased
and is still increasing, thus we find a majority of black people occupying the seats of
parliament. Also there is a 60/40 rule for South African businesses that clearly states that
60% of the management should be black people and the 40% should be other races.(Robert
Dunnigan. Et al 2008. Black economic empowerment) In addition there are companies like
Kwik build which see BEE as a strategic tool that enables them to build their integrity and
draw skilled and competent employees to the business. This however helps the company to
maintain sustainability and growth because investors are also drawn by the good reputation
and ethical behaviour.
BEE has also been able to come up with strategies that will help the country to combat socio
economic issues like poverty, crime and unemployment. Such strategies are corporate social
investment and Growth employment and redistribution programme (GEAR). The corporate
social investment strategy has aimed at persuading big and successful companies to give back
to the community as indirect means of reducing their tax levies. By doing so, poverty is
slowly eradicated which is a result of lowering percentages of crime. On the other hand
GEAR was a strategy aiming at promoting infrastructure development and in that manner
employment is created and uneducated people earn skill and experience which makes them
employable again in future. In my opinion I say the country has been able to slowly achieve
all these developments and it is all due to the BEE policy implemented.
(Department of trade industry,10.2012) Furthermore it is debated that the BEE policy has
achieved most of its objectives. It is proven that through the corporate social investment
strategy more than 2 million of homeless, uneducated and parentless children are being sent
to school and the necessities are being taken care of by companies like Pick’n pay. Also
through GEAR the employment rate in South Africa increased by more than 10% and people

2. who got skills through this initiative 80% of them are black people coming from
disadvantaged societies.
However some people argue that BEE is apartheid all over again but towards a different race.
Also they indicate that it is an opportunity for black people to abuse power and misuse the
states money through corruption. Government officials like Julius Malema are mentioned
because he took tender money to uplift his living status. In contrast I believe that the
country’s government has taken initiative to prevent such incidences from spreading out of
control. An amended act of 2004 which is prevention and combating of corruption activities
was put into place to identify such malicious actions and punish them accordingly.
In conclusion, black economic empowerment has proven and is still proving to be a necessary
tool of combating social economic issues due to its objectives formed bring black people into
power. Secondly by its necessary strategies dealing head on with the issues. Lastly South
Africa has a record of the policy’s achievements through increased employment. In addition
my opinion is, BEE is an effective tool in South Africa because although it is not 100%
efficient but the country sees the change it has brought to South Africa and they are still
enjoying the fruits of BEE policy’s achievements.