Taken from the governments "Strategy for Broad-Based Black Economic Empowerment" - To view the whole strategy document click here.

Our country requires an economy that can meet the needs of all our economic citizens – our people and their enterprises – in a sustainable manner. This will only be possible if our economy builds on the full potential of all persons and communities across the length and breadth of this country. Government’s objective is to achieve this vision of an adaptive economy characterised by growth, employment and equity by 2014.

Apartheid systematically and purposefully restricted the majority of South Africans from meaningful participation in the economy. The assets of millions of people were directly and indirectly destroyed and access to skills and to self-employment was racially restricted. The accumulation process under Apartheid confined the creation of wealth to a racial minority and imposed underdevelopment on black communities. The result is an economic structure that today, in essence, still excludes the vast majority of South Africans. It is crucial to understand the magnitude of what took place in our past in order to understand why we need to act together as a nation to bring about an economic transformation in the interest of all.

The vision of an economy that meets the needs of the people in a more equitable manner goes back to the Freedom Charter of 1955. This was refined and developed in the contemporary context in the Reconstruction and Development Programme (1994). The need to effect redress in the interests of equity is also embodied in our Constitution. Subsequently, government has outlined broad economic strategies to transform the economy by 2014. These strategies include the Microeconomic Reform Strategy and a range of specific strategies such as the Integrated Manufacturing Strategy and the National Research and Development Strategy.

The period since 1994 has seen the South African economy undergo profound restructuring. Ten years of consistent economic growth has been recorded. Macroeconomic stabilisation has largely been achieved, providing a platform for accelerating the growth rate. The economy has become increasingly integrated into global markets and has become a successful exporter of manufactured goods and value-added services. South Africa is now able to position itself as an advanced manufacturing economy.

Despite the economic successes and a broad range of state policy, strategy and programme interventions aimed at overcoming economic disparities, entrenched inequalities continue to characterise the economy and act as a deterrent to growth, economic development, employment creation and poverty eradication. Vast racial and gender inequalities in the distribution of and access to wealth, income, skills and employment persist. As a consequence, our economy continues to perform below its full potential.

Societies characterised by entrenched gender inequality or racially or ethnically defined wealth disparities are not likely to be socially and politically stable, particularly as economic growth can easily exacerbate these inequalities. Therefore the medium- to long-term sustainability of such unequal economies is vulnerable. Accordingly, in South Africa, the socio-political and moral imperative to redress racial discrimination is also an imperative dictated by the need for sustainable growth.

South Africa’s integration into the global economy means that it is exposed to both the positive and negative forces that constitute the process of globalisation. Globalisation can further entrench existing inequalities and further marginalise those on the periphery. Increased inequality and uneven development poses a real danger for all economies, both developing and industrialised. In South Africa, however, inequality and uneven development have extremely strong racial characteristics, which represent a threat to our young democracy.

 

Top 10 BEE Companies

  1. Telkom

  2. Sekanjalo

  3. MTN

  4. Metropolitan

  5. Datacentrix

  6. Capital Alliance

  7. Iscor

  8. Kumba

  9. CS Holdings

  10. ADCORP

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