Change is pain and for BEE it is proving a big pain as politicians of red stripes and assorted global economists take pot shots at the policy. Thus far I have found the pronouncements emotional and anecdotal and therefore lacking in substance. We must ensure we don’t throw the baby out with the bath water, so here is my wish list of how we should make progress.
- We need to institutionalise the transformation and BEE process. It must be disheartening for people who still have to explain to business why it should embrace both the letter and the spirit of transformation — or implore it to do so. We need to be clear about what needs to be achieved, whether it’s commercial, emotional or political.
This has to be supported by a consistent enforcement and measurement that makes it difficult to find loopholes or fudge implementation.
- Institutions such as the Black Management Forum, the Financial Sector Charter Council and Nepad have to create capacity within themselves to play this role. As the accreditation of verification agencies continues to stall, somebody has to provide regulation because business has generally shown a lack of desire to self-regulate.
Hillary Clinton said: “It should be unremarkable to see a woman running for president of the United States.” Similarly, transformed companies should be the norm rather than celebrated because they are an exception. We must strive to make BEE unremarkable.
- The creation of genuine, operating black businesses rather than mere corporate shareholding should be accelerated both for its symbolism — creating pride and a sense of possibility for black people and role models for black upstarts — and for the need to take advantage of opportunities out there.
The lack of black firms, particularly in the financial services sector, has seen many white companies and individuals reaping huge financial benefits for “facilitating” deals that “eventually” benefit black people. BEE deals have created many millionaires in communities that were already advantaged.
The negative consequence of this is the prevalence of a brand of fronting where black people “open doors” and white professionals do the work. No new skills or competencies are learned from such arrangements. Black people end up being “his master’s voice”. It reflects a narrow use of diversity that confines black people to the fringes of business.
- We should use innovative methods to bring new owners from different levels of our society. Here Sasol has to be commended for the lengths to which it has gone to create new owners. It is pleasant to see not only the diversity of beneficiaries from this deal but also the fact that it has a business rationale rather than merely being a search for large numbers.
People moan about the “usual suspects”, but if we are not vigilant the new regime will bring with it only its own usual suspects and redistribution of wealth will be delayed even further.
While retail schemes that deliver dividends to a broad base are in vogue, I do not believe in this model alone. It often sounds and looks as if they are “corporate social responsibility” delivery vehicles for corporates rather than ensuring true transformation. I’d like to see black executives and owners giving strategic corporate direction instead of “business as usual”, which is what such schemes often lead to.
- It does not mean we need change of policy to advance or deal with all these things, it means we need resolve not to be seduced by small, unsustainable gains and lose sight of the holy grail — emancipation and wealth distribution.
As we celebrate the anniversary of June 1976, we remember that the protestors were “just kids” who responded to their situation with vigour, selflessness and solidarity. In all likelihood those who were fortunate enough to survive and navigate their way through a plethora of obstacles are now at the top of their careers. The challenges that face the transformation process in the country remain the same as they were in 1976 and the moment demands of us the same vigour, selflessness and solidarity. Policies such as broad-based BEE offer opportunities to undermine the ideology of white supremacy, but the knowledge and wherewithal about what needs to be done rests with all of us who claim to be conscientised. It’s still imperative that “each one teach one”.