An admission by Finance Minister Trevor Manuel that black economic empowerment (BEE) needs an overhaul has added fuel to the fire of critics who say the flagship policy has only benefited an elite.
Fakir said too much emphasis has been placed on wealth creation at the expense of expanding the boardroom base. "The overall aim of the BEE has been to deracialise business ownership and control instead of aiming to make it easier for black people to gain access to capital for business development. It should not be about contracting wealth but creating opportunities through proper regulations."
Among the most trenchant of critics has been anti-apartheid campaigner and Nobel Peace Prize winner Desmond Tutu, who has said BEE "seemed to be benefiting a small recycled elite".
Even President Thabo Mbeki, seen as the godfather of BEE, admitted in his State of the Nation address this year the number of black managers in companies listed on the JSE was "woefully low".
According to Dirk Hermann, of the Solidarity trade union, Manuel's criticism was long overdue. "We only see the enrichment of an elite few, and those who have connections with the ANC," Hermann said. "There is not enough done to train the previously disadvantaged to be independent and start their own business. Instead, unemployment is still high and people still don't have access to capital. It is a serious problem."
The main opposition Democratic Alliance (DA), which has been heavily critical of BEE, said it would support a review of the policy.
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