History of Black Economic Empowerment











The strategy laid the foundation for the BBBEE Act


Section 9 of the BBBEE Act states that the Minister may by notice in the Gazette issue codes of good practice on black economic empowerment that may include:









Section 10 of the BBBEE Act further gives the status of the codes by stating that: Every Organ of State and Public Entity must take into account and, as far as is reasonably possible, apply any relevant code of good practice issued in terms of this Act in –



Since 1994 BEE has been a major thrust of all government policies but there was no coherent strategy towards the implementation of BEE

The BEE commission released a report in 2000 which gave the first attempt at broadly defining BEE

The receipt of this report by government played a pivotal role in the development by government of a strategy towards the implementation of BEE

In 2003 a strategy for Broad-Based Black Economic Empowerment (BBBEE) was released which defines BBBEE as:



an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the numbers of black people that manage, own and control the country’s economy, as well as significant decreases in income inequalities.


Thus the BEE process will include elements of human resource development, employment equity, enterprise development, preferential procurement, as well as investment, ownership and control of enterprises and economic assets.





The further interpretation and definition of broad-based black economic empowerment and the interpretation and definition of different categories of black empowerment entities;

Qualification criteria for preferential purposes for procurement and other economic activities

Indicators to measure broad-based black economic empowerment:

The weighting to be attached to broad-based black economic empowerment indicators

Guidelines for stakeholders in the relevant sectors of the economy to draw up transformation charters for their sector; and any other matter necessary to achieve the objectives of this Act.




Determining qualification criteria for the issuing of licenses, concessions or other authorizations in terms of any law;

Developing and implementing a preferential procurement policy;

Determining qualification criteria for the sale of state-owned enterprises: and

Developing criteria for entering into partnerships with the private sector



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