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Mpho Sibanyoni | 20th October 2025 An internal disciplinary hearing has found Gregory Wayne Adams, the chief executive of a government-owned sector education and training authority (Seta), guilty in relation to more than R1.2-billion in irregular expenditure. The verdict, delivered on Tuesday, comes after a marathon disciplinary process, which started when the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSeta) suspended Adams in 2022 after a forensic audit returned a raft of damning findings against him. According to the report, which Sunday World has seen, Adams was found guilty of charges two, three, four (count two) and seven. However, he was not guilty in relation to charges four (count one), five and six. The hearing, held at Afsa Chambers in Sandton, Johannesburg, was chaired by Adv Lindi Nkosi-Thomas. Charge two is related to the irregular increase in the Joint Education Trust’s (JET) discretionary grant. According to the hearing outcome document, charge two (count one) determined that between January and March/April 2019, Adams caused merSeta to conclude an addendum to the JET’s discretionary grant memorandum of agreement (MOA), thereby increasing the allocation amount from R 2 646 500 to R7 396 500. “At the time, the employee (Adams) ought to have been aware that the increase was not duly authorised in terms of merSeta’s applicable legal framework.” In relation to charge three, Adams was found to have failed to exercise adequate oversight regarding the conclusion of the JET discretionary grant. Adams allegedly caused various acting chief operating officers to irregularly conclude discretionary grant MOAs on behalf of merSeta in breach of the prevailing merSeta delegation of authority; as a result, merSeta incurred irregular expenditure of more than R1.2-billion. “The amount is inclusive of R40 362 638, which amount relates to counts two to six,” reads the document. The document further states that in March 2021 and March 2022, an employee concluded several discretionary grant MOAs without any delegated authority and without exercise of sufficient oversight. The document further alleges that a staff member concluded a discretionary grant MOA with several external companies without any delegated authority and absent the employee’s exercise of sufficient oversight to ensure that only duly authorised merSeta officials conclude the discretionary grant MOAs on behalf of merSeta. This action resulted in the state-owned entity incurring more than R40.5-million in irregular expenditure in total as a result of the MOAs. Adams is also accused of failing to declare a conflict of interest in regard to the JET transaction. Between July 2018 and March 2020, merSeta concluded various agreements to fund JET, an entity represented by an official who had a long-standing relationship with Adams from the employee’s previous employment. Adams was allegedly part of merSeta’s management that approved and concluded the JET agreements and failed to disclose his relationship with the JET official, which is in breach of the conditions of employment with merSeta. The disciplinary hearing outcomes document called upon Adams and merSeta to file their submissions in mitigation and/or aggravation of sanction with the chair by no later than close of business on October 20. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/merseta-ceo-found-guilty-of-causing-entity-to-incur-over-r1-2bn-in-irregular-expenditure/#goog_rewarded

Thabiso Goba | 20 October 2025 The bill is the party’s proposed policy to replace Broad-Based Black Economic Empowerment. The Democratic Alliance (DA) has proposed an economic empowerment bill that removes race as a determining factor, replacing it with a needs-based approach. The bill is the party’s proposed policy to replace Broad-Based Black Economic Empowerment (BBBEE). At a media briefing in Johannesburg on Monday, the party said BBBEE has only benefited a few politically connected individuals instead of a majority. The BEE Act was introduced in 2003 as a redress policy to deal with the racial economic inequalities caused by apartheid. Under apartheid, large parts of the economy remained in the hands of the white minority, while the black majority was excluded. DA federal chairperson, Ivan Meyer, said while this is true, affirmative action policies do not necessarily need to be race-based. “For example, if you apply for social grants, not on the basis of race, if you go and look who are the main beneficiaries - it’s black people. You don’t need to target black people, you need to target the need." “The majority of people getting support for students, look at the books, you don’t target the black colour of your screen, you target the need and by the very nature of people in SA being black, they are the main beneficiaries. It’s incorrect to say this will not empower them. They will be more empowered because BEE has a narrow focus.” The DA said it will be tabling the bill before Parliament soon. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2025/10/20/da-proposes-economic-empowerment-bill-that-removes-race-as-determining-factor

The Balanced Broad-Based Black Economic Empowerment (B-BBEE) Scorecard remains one of South Africa’s most critical levers for sustainable and inclusive economic transformation. More than a compliance tool, it represents a strategic framework that challenges corporate leaders to redefine value creation, not only in financial terms but through measurable social and economic impact.   Its impact is visible in the evolution of South Africa’s business landscape: an expanding base of Black-Owned enterprises, increasing opportunities for youth and women, and stronger linkages between big business and small suppliers. Yet, the Scorecard’s true success lies in how it influences leadership behaviour, driving accountability, ethical stewardship, and long-term investment in human capital.   For Transformation Leaders, the Balanced B-BBEE Scorecard is not merely a measurement of compliance. It is a strategic compass that guides organisations toward competitiveness through inclusivity, sustainability, and shared prosperity.   B-BBEE Strategy Services  are available for assistance with B-BBEE Strategies for Members.

An organisation may not claim the salary for an employee Bursar as part of its Bursary Programme. However, as per 2.1.1.2 of the Skills Development Scorecard under Statement 300  of the Amended General B-BBEE Codes of Good Practice , an organisation may claim a stipend for an unemployed Bursar.   2.1.1.2 refers: “Skills Development Expenditure on bursaries for ‘Black’ Students at Higher Education Institutions”.   Based on prior behaviour, this principle results in organisations giving preference to unemployed Bursaries through which they can claim a higher overall cost.   Members need to consider the return on investment as well as the B-BBEE points when developing their Bursary strategy and assess where Bursaries may fall into their Employee Value Proposition (EVP) and their Training Plan before being driven blindly by the B-BBEE points in isolation.   Skills Development Services  are available for assistance with Bursary Strategies for Members.

The Department of Trade, Industry and Competition ( the dtic ) provides Sworn Affidavit templates  for EMEs and relevant QSEs with at least 51% Black Ownership or more under the Amended General B-BBEE Codes of Good Practice. These Sworn Affidavits address all the information necessary for a B-BBEE Verification. However, as per Statement 000  of the Amended General B-BBEE Codes of Good Practice, only a Sworn Affidavit is required, so if a personalised Sworn Affidavit that contains all the relevant information essential for a B-BBEE Verification is received, it will be deemed as valid.   However, it is recommended that EMEs and QSEs with more than 51% Black Ownership use the templates provided by the dtic  or relevant B-BBEE Sector Councils to avoid missing information that would invalidate a personalised Sworn Affidavit.   Certificate Collection Services  are available to assist members in determining the validity of a Sworn Affidavit

IT-Online | 20 October 2025 The once coveted corner office is losing its shine for many young South African professionals. A growing number of professionals under 35 are choosing flexible contracts and freelance opportunities over traditional corporate careers. Jessica Tandy, Bizmod cofounder and director, says that this is a shift rooted not in rebellion, but a new kind of realism. “The current socio-economic landscape is driving this transformation.  With youth unemployment sitting at a staggering 61%, the idea of ‘job security’ is more myth than reality for many. Young professionals aren’t rejecting work in the traditional format but rather redefining what it looks like.” In a climate where corporate hierarchies may feel rigid and outdated, Gen Zs and Millennials are building careers on their terms and leveraging platforms like Upwork, Fiverr, NoSweat, and Jobox, often reaching clients outside South Africa’s borders. The change isn’t limited to creative fields. “We are seeing finance graduates working part-time for fintech startups abroad, IT professionals juggling both local and international projects, and consultants creating niche service offerings,” says Tandy. The numbers support this trend. As of 2025, South Africa is projected to have 2-million freelancers, pointing to a structural transformation in the market that is not just a trend. This transformation is not without trade-offs. While contracting offers flexibility, it lacks benefits such as medical aid, retirement contributions, and a consistent income. This can be a daunting reality for a 26-year-old trying to rent their first apartment, or a 40-something professional forced to pivot after retrenchment. In addition, older professionals may face hurdles in adapting to digital-first platforms or building their online brand, skills that come more naturally to the youth. Tandy says traditional employment is still attractive for those seeking structure, formal training, and long-term stability. Yet for many younger professionals, the pace and politics of the corporate arena may feel misaligned with their goals. “Especially for diverse professionals, particularly Black women, corporate spaces can still feel exclusionary,” she says. “That’s driving a push toward more inclusive, self-authored career paths. “We are not seeing the collapse of corporate South Africa, but a recalibration,” says Tandy. “Contracting isn’t just a side hustle anymore; it has become a primary source of income. For some, it’s about control. For others, it’s survival.” As the gig economy matures, the future of work in South Africa isn’t about remote or hybrid offerings but rather fluid, purpose-driven, and self-engineered. The key question for HR leaders and businesses isn’t “Which path is better?” but rather, “Which path offers people the access and opportunities to live and thrive?”. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2025/10/20/young-professionals-are-rewriting-career-paths/

CBN | 20 October 2025 Engineering joint venture brings national skills development strategy to life. THROUGH the GIBB and Knight Piésold Joint Venture (GKP JV), appointed for the water conveyance infrastructure component of Phase 1 of the uMkhomazi Water Project (uMWP-1), the two firms have joined forces to ensure young candidate engineers, geologists, and environmental scientists gain the mentorship and experience required for professional registration in their fields. The initiative forms part of the Trans-Caledon Tunnel Authority’s (TCTA) uMWP-1 – a major water infrastructure project in KwaZulu-Natal designed to augment the uMngeni Water Supply System (MWSS) by transferring water via a tunnel and pipeline from the new Smithfield Dam on the uMkhomazi River. According to Skills Development Manager Phumie Mayongo, the TCTA required the GKP JV to implement a skills development programme aligned with South Africa’s National Skills Development Strategy (NSDS) III and the Construction Industry Development Board’s B.U.I.L.D. Programme. Both initiatives emphasise developing technical and professional capacity, particularly among young black South Africans, while mandating that large infrastructure projects allocate funding toward skills and enterprise development. “The programme includes recruitment, mentorship, and facilitation of candidates’ professional registration with bodies such as the Engineering Council of South Africa (ECSA) and the South African Council for Natural Scientific Professions (SACNASP),” says Mayongo. Launched in July 2025, the programme provides graduates with mentorship and on-site experience critical to their long-term career prospects. GKP JV Project Manager, Francis Gibbons, notes that while the project focuses primarily on civil engineering, it also involves significant environmental and geotechnical work. “Wherever opportunities existed to place candidates in specialist areas, we’ve done so,” he says. Gibbons adds that professional registration requires at least three years of practical experience under the guidance of a mentor. “Our main goal is to help candidates achieve professional status, but we also hope to retain top performers within GIBB and Knight Piésold. Leadership in both firms recognised that beyond compliance, this initiative adds real value to the industry and to society.” He commended Mayongo’s role in driving the process forward and the TCTA’s foresight in requiring a dedicated Skills Development Manager. “We provide the mentorship and training, but the candidates must take ownership of their growth. We can support them, but their motivation and discipline are what will ultimately determine success.” GIBB bridge professional engineer and mentor, Raeesa Khan, says professional registration typically takes four to five years and demands “patience, resilience, and hard work.” She adds: “Candidates must be willing to fail, learn, and try again. Asking questions, conducting research, and problem-solving are essential parts of the journey.” Knight Piésold mentor, Darren Pillay, highlights communication and safety as vital skills for emerging engineers. “Mastering professional communication is key. Just as important is developing a risk-averse mindset to ensure health and safety standards are upheld during both design and construction.” Through initiatives like this, the GKP JV is not only delivering critical water infrastructure but also helping to build South Africa’s next generation of engineering and scientific professionals. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://cbn.co.za/industry-news/skills-training-development-news/engineering-joint-venture-brings-national-skills-development-strategy-to-life/

Xoliswa Zakwe | 16 October 2025 The Youth Employment Service (YES) Gamechangers Challenge is offering funding, training, and direct access to corporate supply chains to help young entrepreneurs thrive, not just survive. In a landmark development for South Africa’s youth entrepreneurship ecosystem, the Youth Employment Service (YES) officially launched the YES Gamechangers Challenge (YGC). Launched at Sandton Convention Centre on October 15, the YGC is a transformative initiative designed to bridge the gap between high-potential young entrepreneurs and established corporate supply chains. YES CEO Ravi Naidoo said, “With South Africa grappling with one of the world’s highest start-up failure rates, where over 86% of small businesses collapse within the first year, the YGC aims to rewrite that narrative by providing not just funding, but a sustainable market for youth-led businesses to thrive. “It represents a fundamental shift in how we support young entrepreneurs in South Africa. This programme is demand-led. We’re not just providing capital; we’re creating pathways for sustainable growth by connecting youth entrepreneurs directly to corporate supply chains, while providing the support entrepreneurs need to succeed.” YES, which operates as a public-private partnership between the Presidency and corporate South Africa, has already made a significant mark with its youth employment programmes. Naidoo said since 2019, the initiative has placed over 200 000 young South Africans into quality work experiences, often their first. “A growing outcome of these internships has been the rise of youth-led start-ups. In 2025 alone, 15% of the 43 088 YES youth participants, over 7 100 young people, started their own businesses. Overall, more than 28 000 YES alumni have gone on to establish businesses. “The YGC leverages this existing momentum by offering a powerful launch pad for 1 000 youth entrepreneurs in its next phase. Entrepreneurs with confirmed contracts with corporates can access funding between R300 000 and R2m to accelerate their ventures.” Naidoo added that the initiative is also designed to serve as a solution for large corporates aiming to strengthen their ESG (Environmental, Social, and Governance) credentials. By onboarding youth-led enterprises into their supply chains, corporates can make a meaningful impact while also benefitting from innovative and agile service providers. “We know young people are not short on ideas or drive; what they need is opportunity and access. The YGC gives them both,” said Naidoo. “We’re opening the doors to nearly 2 000 corporate partners, ensuring that young entrepreneurs can build sustainable businesses, not just survive the first year.” The programme is open to entrepreneurs under 35 years of age, or YES alumni, who can demonstrate business potential and corporate engagement. It will also offer training, mentorship, and non-financial support to increase chances of success. The first cohort of the programme participants is set to launch in early 2026, with applications expected to open in the first quarter of the year. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/sandton-chronicle/news-headlines/2025/10/16/start-up-failure-rates-are-sky-high-but-yes-the-youth-are-the-solution/

Staff Writer | 16 October 2025 The Department of Employment and Labour says it will come down hard on any employers in South Africa who do not comply with the Employment Equity Act (EEA) and the new racial employment targets it set in April. Responding to a parliamentary Q&A, Minister Nomakhosazana Meth said that the department has various enforcement measures at its disposal to ensure compliance. The first consequence of not adhering to the laws is that any employer that is found to be non-compliant with the relevant provisions of the EEA will not be issued with the EE Compliance Certificate. This certificate is a prerequisite to accessing any state contract. This implies that any company without an EE Compliance Certificate will be prohibited from doing business with any organ of state, she said. Secondly, any employer that fails to achieve its own annual EE targets towards meeting the applicable five-year sector EE targets—without any justifiable reasons—will be referred to the Labour Court. If found guilty, these employers will be liable for a penalty or fine, which starts at R1.5 million or 2% of annual turnover—whichever is greater—and can escalate to 10% of turnover for repeat offenders. The minister said that the EEA is “key transformative legislation” that is in place to protect the fundamental human right to equality and equity in employment. It came into effect from 1 January 2025 and applies to “designated employers”, being any businesses employing more than 50 people. “The EEA achieves equity in the workplace by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination,” she said. This is done by forcing employers to “redress the disadvantages in employment experienced by…black people; women; and persons with disabilities, to ensure their equitable representation in all occupational levels in the workforce.” Through the EEA, the minister is empowered to set specific racial targets for 18 sectors in South Africa, which employers need to meet within five years. These were gazetted in April 2025. These sectoral targets establish which percentage of a workforce needs to be made up of black people, women and people with disabilities, specifically singling out and minimising the representation of white males in the workplace. Racial quotas by any other name Government coming after businesses in South Africa for R1.5 million or up to 10% of turnover The Department of Employment and Labour says it will come down hard on any employers in South Africa who do not comply with the Employment Equity Act (EEA) and the new racial employment targets it set in April. Responding to a parliamentary Q&A, Minister Nomakhosazana Meth said that the department has various enforcement measures at its disposal to ensure compliance. The first consequence of not adhering to the laws is that any employer that is found to be non-compliant with the relevant provisions of the EEA will not be issued with the EE Compliance Certificate. This certificate is a prerequisite to accessing any state contract. This implies that any company without an EE Compliance Certificate will be prohibited from doing business with any organ of state, she said. Secondly, any employer that fails to achieve its own annual EE targets towards meeting the applicable five-year sector EE targets—without any justifiable reasons—will be referred to the Labour Court. If found guilty, these employers will be liable for a penalty or fine, which starts at R1.5 million or 2% of annual turnover—whichever is greater—and can escalate to 10% of turnover for repeat offenders. The minister said that the EEA is “key transformative legislation” that is in place to protect the fundamental human right to equality and equity in employment. It came into effect from 1 January 2025 and applies to “designated employers”, being any businesses employing more than 50 people. “The EEA achieves equity in the workplace by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination,” she said. This is done by forcing employers to “redress the disadvantages in employment experienced by…black people; women; and persons with disabilities, to ensure their equitable representation in all occupational levels in the workforce.” Through the EEA, the minister is empowered to set specific racial targets for 18 sectors in South Africa, which employers need to meet within five years. These were gazetted in April 2025. These sectoral targets establish which percentage of a workforce needs to be made up of black people, women and people with disabilities, specifically singling out and minimising the representation of white males in the workplace. Racial quotas by any other name It is on this basis that the laws are being challenged in court, with opponents arguing that the targets amount to rigid quotas, are unimplementable, irrational, and unconstitutional. The laws are being challenged by business lobby Sakeliga, the National Employer Association of South Africa (NEASA), and Business Unity South Africa. The department has hit back at the characterisation, arguing that the targets cannot be seen as rigid quotas as they are five-year goals that companies must pursue on their own terms. The laws also give various grounds for “justifiable” deviation, including: Insufficient recruitment opportunities; Insufficient promotion opportunities; Insufficient target individuals from designated groups with relevant qualifications, prior learning, experience or capacity to acquire such within a reasonable time; The impact of a CCMA award or court order; A transfer of a business; Mergers or acquisitions; and The impact of economic conditions on the business. However, critics have doubled and tripled down on their opposition, saying that the laws will stifle growth, force businesses to limit expansion and investment, and result in job losses as companies seek other markets. Notably, Meth said that the laws are not intended to be a job creation policy. However, she said they should support job creation and not discourage it. To this end, the laws reduce the administrative regulatory burden on small businesses (fewer than 50 employees) that do not need to comply. However, they are still subject to other sections of the law, which protect against discrimination. These exemptions, she argued, create a conducive economic environment that will enable small businesses to grow, become sustainable and eventually create jobs. While the minister is threatening harsh action and penalties on businesses that do not comply with the laws, she stressed that compliance levels will only be assessed in 2026. Because the sectoral EE targets were only published for implementation on 15 April 2025, affected companies only had to submit their EE plans from 1 September 2025 to 15 January 2026. “Therefore, it is premature at this time to assess how many designated employers are complying with the sector EE targets. The assessment of compliance with the sector EE targets will only come into effect in the 2026 EE Reporting period,” she said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/840113/government-coming-after-businesses-in-south-africa-for-r1-5-million-or-up-to-10-of-turnover/

Many may not be familiar with the formal definition of a Black New Entrant as it only features under the Ownership Scorecard.   As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , “Black New Entrants” means:   Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured using a standard valuation method;   Ownership Services  are available to members with any queries relating to the above and the Ownership Scorecard.

Statistics South Africa is the source used to determine the Net Profit After Tax (NPAT) for calculating the targets for Enterprise Development, Supplier Development and Socio-Economic Development. The latest statistics  were published during September 2025. The statistics in this version will be for the   2 nd  quarter of 2025.   Any B-BBEE Verification from hereon would most commonly apply the latest Industry Norms  published by Statistics South Africa. For example, if a B-BBEE Verification takes place in October 2025, the latest published stats to be used would be those posted during September 2025.   Technical Compliance Services  are available to guide members in calculating their Targets.

Hermann Pretorius | 12 October 2025 “Broad-Based” Black Economic Empowerment (B-BBEE) reduces being economically excluded to being black. Even if this unsupported and contentious position were true, B-BBEE would still be an inherently elitist policy that caters for an entrenched elite already equipped for high levels of economic participation, and leaves the poorest behind. At best, it is an entrenchment policy and not an empowerment policy. At worst, it is a cynical smokescreen to justify the continual incestuous enrichment of an elite, using the unallayed socio-economic hardships of millions as justification. If we take economic empowerment to mean a credible route from poverty to at least sustainable membership of the middle class, an honest assessment of the simple socio-economic facts will show that in South Africa, and likely elsewhere, blackness doesn’t cause poverty, nor does poverty cause blackness. The fact that there are wealthy black South Africans makes a factual mockery of any idea that having a black skin causes poverty. And the fact that there are poor white South Africans debunks any idea that a black skin leads to poverty. For black children from an economically deprived place like Atteridgeville, there are, quite simply, multiple obstacles to their upward socio-economic mobility and the chance of one day joining the middle class. If their skin colour might be one of these factors, even the most ardent champion of B-BBEE cannot honestly say it’s the only one. Let’s take a clear-eyed view of what obstacles lie between black children and their joining the middle class. Unsafe neighbourhoods and high crime-rates expose children to violence and chronic stress, undermining learning and school attendance. Parental absence, widespread in South Africa due to spatial apartheid, migration, and family breakdown, reduces emotional stability and parental guidance. Overcrowded housing, poor sanitation and unreliable healthcare further erode health and learning prospects. Compound disadvantage Educational obstacles often compound disadvantage. The 2021 PIRLS study found that 81% of Grade 4 learners could not read for meaning. Linking this tragedy to socio-economic disempowerment, Spaull and Kotze’s findings in a 2014 working paper, Starting Behind and Staying Behind, showed that early learning gaps in poor communities persist and widen. Even when children succeed academically, they face weak local labour markets, as Raj Chetty’s seminal 2014 research on mobility and opportunity in the United States touched on. They also face limited social networks to access bursaries, internships or jobs. One often hears the argument that B-BBEE’s implementation, rather than the policy itself, has made it an elitist policy that enriches the wealthy rather than empowering the poor. It is possible to debunk this contention wholesale. In a country where the socio-economic obstacles standing between children born in poverty and their rise to join the middle class are entrenched and cruel, what happens if race-based policies like B-BBEE or employment equity race targets are enacted? Is it reasonable to expect a wholesale, broad-based wave of empowerment cascading across the country and bringing upliftment to those most removed from rising to the middle class by these multiple factors? Unfortunately for those arguing that policies like B-BBEE and employment equity targets aren’t inherently elitist and incapable of aiding the poor, the clear answer is a resounding ‘no’. Even if we entertain the flimsy premise of the pro-B-BBEE camp: that a black skin in South Africa today is an obstacle to socio-economic upliftment, removal of this obstacle through racial favouritism in state interventions evidently and logically cannot uplift the vast numbers of black South Africans trapped in poverty. Deepest crevasses Far from allowing empowerment to reach into the deepest crevasses of socio-economic deprivation, the only possible beneficiaries of policies like B-BBEE will be those black South Africans who have already overcome the formidable and entrenched obstacles discussed above. And far from allowing an entire racial group to experience a rising tide, race-based empowerment policies like B-BBEE can only further entrench the relative socio-economic privilege of those already occupying the most privileged positions within the said group. These policies create within the identity groups, in South Africa’s case the black population, insurmountable divisions between the already-haves and the never-will-haves. It isn’t a bug – it’s a feature. For B-BBEE policies to truly benefit across the board – to be, as the label claims, broad-based – the multiple other obstacles to economic empowerment will first have to be dealt with. Two strands of irony creep into this scenario: Firstly, B-BBEE’s eschewing of merit as the prime consideration in appointments and dealings, contrary to the recommendation of former Chief Justice Zondo in his commission report, harms those people most in need of capable and expansive state support and reliable service delivery. By allowing race-based policies instead of merit to dictate the allocation of financial and human resources, state support and delivery to the poorest are sabotaged in terms of both quality and quantity. The primary victims of this in South Africa? The poorest black people in our society. Secondly, were the various obstacles to socio-economic upliftment to be removed so comprehensively as to level, as it were, the playing field of opportunity, and for the racial favouritism of policies like B-BBEE to be applicable and useful to the entire black population, the favouritism itself would be redundant. Actually remove obstacles For B-BBEE, therefore, to stand any chance of actually removing obstacles to economic empowerment in the poorest parts of South Africa and creating the fabled ‘level playing field’, either B-BBEE itself will have to be suspended to ensure a merit-based capable state able to ensure proper service delivery and social support, or the holistic eradication of all other obstacles to socio-economic upliftment must have been so effectively dealt with that B-BBEE as a tool of engineered substantive equality becomes instantly redundant. Economic empowerment and disempowerment in South Africa therefore reveal B-BBEE at its best to be irredeemably elitist, where it isn’t utterly impotent. The problem for the advocates of all race-based empowerment policies is a fundamental misdiagnosis of the socio-economic obstacles faced by South Africa’s poorest. The mere fact that there are wealthy black South Africans and poor white South Africans casts sufficient doubt on the simplistic assumption is that a black skin is an obstacle to socio-economic upliftment. The uncomfortable truth is that B-BBEE has not merely been poorly implemented, creating an elite beneficiary class whilst leaving the rest behind. The fact is that all race-based empowerment policies like B-BBEE are conceptually misaligned with the real barriers to and engines of economic upliftment. By mistaking race for the root cause of poverty, it diverts attention and resources away from the structural obstacles that actually entrench deprivation, while those at the top gain ever more wealth and privilege. Benefits can only ever flow to the relatively few who have already surmounted those obstacles, not to the millions still trapped behind them. As a result, B-BBEE operates less as a ladder for the poor than as an elevator for an elite already on the inside. A genuine empowerment policy would directly target the obstacles to prosperity that do not discriminate on race: the deep, layered impediments to upward mobility. Cascade of empowerment This is the heart of the IRR’s Freedom From Poverty Bill, a draft legal instrument that replaces BEE with Economic Empowerment for the Disadvantaged (EED). Instead of misguided or cynical assumptions about socio-economic obstacles, EED focuses on the three most immediate and tangible knots that, if untied and untangled, can trigger a cascade of empowerment at a grassroots level: education, housing, and healthcare. By creating a tax-funded voucher system for each of these socio-economic mobility choke points, state funding will flow directly to those who need it most. Not only will this stir economic activity across the country and cut out countless bureaucratic or corrupt hurdles currently sapping the life out of state support for those in need. It will give the fundamental dignity of consumer choice to those who have been excluded from it. Until South Africa embraces such an approach, racial favouritism dressed up as empowerment will remain what it has always been. More and more South Africans are seeing policies like B-BBEE to be incoherent in theory, elitist in practice, and unjust in outcome. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://irr.org.za/media/how-bee-became-a-ladder-for-the-elite-not-the-poor-biznews