"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
SOUTH AFRICA'S APPROACH TO
BEE - BLACK ECONOMIC EMPOWERMENT
The South African President, Mr. Thabo Mbeki, had the following to say on BLACK ECONOMIC EMPOWERMENT during his STATE OF THE NATION ADDRESS in the Houses of Parliament, Cape Town, South Africa, on 14 February 2003
"As we approach the end of the first decade of our new democracy the need for an economic transformation that brings about effective and significant black economic empowerment becomes more pressing. We believe that it is in the interests of all citizens that we succeed in this endeavour. Through a far-sighted partnership between all sectors of our society we can ensure a stable and growing economy that erases the inequities of the past and draws us all - irrespective of our race, sex or creed - into a more prosperous and equitable future.
The Government concurs with the view of the Black Economic Empowerment Commission that it is now necessary to make our policies on black economic empowerment more explicit. In the light of the important developments in industries such as liquid fuels, fishing and mining we need to ensure clarity and certainty for all economic actors.
The government is firmly of the view that economic growth, development and black economic empowerment are complementary and related processes. The empowerment we speak of is an inclusive process and not an exclusive one. No economy can meet its potential if any part of its citizens is not fully integrated into all aspects of that economy. Equally it follows that an economy that is not growing cannot integrate all its citizens into that economy in a meaningful way.
The government has prepared a detailed set of proposals on black economic empowerment and the Minister of Trade and Industry and the Department of Trade and Industry, on behalf of government, have consulted extensively. Today I will set out the basic framework and approach. On Budget Day the Minister of Finance will deal with the government's positive financial and macroeconomic assessment of the BEE process and shortly thereafter the Minister of Trade and Industry will publish the detailed documents and processes that I will now outline.
We will introduce into Parliament early this year a basic enabling piece of legislation that will establish broad parameters for the policy and allow for the publication of the strategy document and guidelines dealing with good practice in terms of the policy, all of which will make up the Global Transformation Charter. This approach has been adopted to allow pragmatism and flexibility within the different components of the economy. A rigid and inflexible approach is not in the best interests of a modern and globally competitive economy.
However, by passing such an enabling Act we wish to signal to all that meaningful economic transformation is fundamental to our collective prosperity. As with all Acts the Bill will be open to comment in the Parliamentary process.
With the publication of the guidelines shortly we intend to establish certainty and stability. It is not in the interests of the economy that we have continuously moving goal posts. However, we also need to ensure that we respond effectively to changing circumstances - as we do with all policy - and to this end we will establish a non-statutory advisory council.
Empowerment is defined as a broad-based process and the scorecard approach - covering ownership, management, employment equity, skills development, procurement, corporate social responsibility, investment and enterprise formation - developed in the Mining Charter has been adopted.
The guidelines will provide more precision as to what can be defined as black-owned enterprises. The actions and outcomes that are within BEE policy will be spelt out. Government does not seek to encourage charters for every sector of the economy. This is unrealistic and not necessarily useful. The basic guideline is that where government disposes of any right, licence or partnership arrangement then BEE components to the arrangement will be clearly spelt out. This is in line with existing practice. A charter therefore best serves certain sectors.
Accordingly government is supportive of the work being done in the financial sector. If enterprises in a sector feel that they need a charter they should be clear on their objectives and take advice from government. The guidelines will set out the basic principles that should be contained in any charter and will make it clear that there needs to be consultation at all times so as to involve stakeholders.
We would stress, however, that all enterprises will be encouraged to utilise the guidelines on empowerment and to develop their own scorecard approach. Certainly in any dealing of significance with the public sector this will be expected of an enterprise.
The government will lay greatest stress on black economic empowerment that is associated with growth, development and enterprise development and not merely redistribution of existing wealth. We will work in partnership with the private sector and will further ensure that government actions are coordinated and monitored."
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FOR A FULL TRANSCRIPT OF THE STATE OF THE NATION ADDRESS OF THE PRESIDENT OF SOUTH AFRICA, THABO MBEKI, Houses of Parliament, Cape Town, 14 February 2003
CLICK HERE
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