5 ways BEE has damaged SA’s economy

Tariq Khan | Oct 03, 2021
The ANC-led government has implemented BEE policies for more than a decade now. Shockingly, instead of creating jobs and growing the economy, BEE has had the opposite effect. Today millions of South Africans from disadvantaged backgrounds are jobless and cannot pursue their dreams.

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5 ways BEE has damaged SA’s economy

The ANC-led government has implemented BEE policies for more than a decade now. Shockingly, instead of creating jobs and growing the economy, BEE has had the opposite effect. Today millions of South Africans from disadvantaged backgrounds are jobless and cannot pursue their dreams.

 It is no surprise that the majority of South Africans feel that BEE has failed them. This is the one instance where ANC politicians turn a blind eye to the “lived experience” of South Africans. Here are five ways in which BEE is hurting South Africa’s economy – showing why it should be replaced with a non-racial empowerment policy.

  1. Since its implementation over a decade ago, BEE has transferred R1 trillion to politicians, trade unionists and public servants – but contributing next to nothing to creating jobs for those who are disadvantaged in our society.

 

  1. BEE has contributed to the “deindustrialization” of South Africa. This law has been skewed to favour politicians, instead of entrepreneurs and others who wish to contribute to building our country.

 

  1. Complying with BEE legislation has created more administration-related tasks and paperwork for businesses. The excess of extra work has caused some investors to think twice about bringing their businesses to South Africa. The consequence of this is that South Africa has missed out on the chance to attract more money and new businesses.

 

  1. BEE tends to benefit those who have already experienced empowerment – politicians with access to political power. Unfortunately, little has been done to empower South Africans who live in disadvantaged circumstances. Hospitals are mismanaged, the quality of education remains poor and millions of people are currently unemployed.

 

  1. BEE is causing South Africa’s infrastructure to become dilapidated. The South African government’s procurement budget – which is over R500 billion – is routinely exposed to corruption, fraud and misuse by the ANC-connected. The Special Investigating Unit is currently looking into tainted contracts worth R139bn, which involve Eskom power stations.

 

In order to achieve prosperity, South Africa has to get rid of BEE policies. The five reasons discussed above show that these policies are detrimental to our country. South Africa is yet to see an empowerment policy that will help the disadvantaged man and woman; at the moment it has an empowerment policy that favours only those who are part of the elite class in South Africa.  

Cover image source available here.

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