The Broad-Based Black Economic Empowerment Bill is another important step in the economic revolution in the democratic South Africa, Trade and Industry Minister Alec Erwin said on Tuesday.
Introducing debate on the legislation in the National Assembly, he said the legacy of apartheid had left difficult challenges in the development of new enterprises and increasing the depth of participation of black South Africans in the economy.
To grow and develop, South Africa needed an economy that could meet the needs of all its citizens and their enterprises in a sustainable manner, he said.
This would only be possible if the economy drew on the full potential of all people and communities across the country.
The bill was essentially enabling legislation that created a framework for the development and implementation of black economic empowerment policy.
”It does this by the important mechanisms of the advisory council, a strategy document, codes of good practice and the publication of transformation charters,” Erwin said.
Mark Lowe of the Democratic Alliance (DA) opposed the measure, saying it failed to make job creation its key measurable and the centrepiece of empowerment policy.
It put economic growth and empowerment in competition with each other, was overly prescriptive, with unfettered discretionary powers vested in the minister, and evaded the key question of financing BEE, he said.
It further neglected to link the crucial skills crisis with job creation and empowerment opportunities, and its definition of ”black” South Africans opened the door to manipulation and abuse by ”powerful, well-connected ANC cronies,” he said.
”The Democratic Alliance strongly supports efforts to transform our economy and empower the millions of South Africans excluded by apartheid.
”But these must be genuine efforts that, at their very heart, tackle poverty, unemployment and inadequate education.
”They must empower the many, and not just the few,” Lowe said.
The New National Party’s (NNP) Rodney Rhoda said post apartheid South Africa was witnessing deracialisation and reconstruction of society on many fronts, but sadly the economy remained profoundly racialised.
”Much has been achieved since 1994 but we are trapped in a low growth equilibrium — economic exclusion and under development.
”The extent to which this growth has been shared equitably amongst all South Africans is not yet adequate for the requirements of a stable, integrated and prosperous society,” Rhoda said.
The United Democratic Movement’s (UDM) George Madikiza also supported the bill, but warned that as progress was made towards an economy that was more inclusive and participatory, ”we must be vigilant against the abuse of this process for the establishment of a new elite”.
Such incidents did not improve the lives of the majority. It was therefore important that the concept ”broad-based” should be the operative theme in the pursuit of economic empowerment, Madikiza said.
The bill was approved by the House without the DA’s support, and will now go the National Council of Provinces for concurrence. – Sapa