Let's look at the last 6 years
How did the Indian/Asian Group spike like that jump back down around 2021? Where is the data for that?
But this has been 6 years with BEE? Where is this magical time where it's going to fix the unemployment rate? Now they're adding more and more to try fix that blue line?
If BEE had been done right, with sunset clauses and proper incentives sure, go for it. But currently
That would be a significantly different policy from an open-ended empowerment programme. In that scenario, BEE would function more like a
development programme with measurable success criteria rather than a permanent feature of the regulatory landscape.
For example, Parliament could have legislated something like:
| Goal | Target | Incentive |
|---|
| Black tertiary STEM graduates | Triple by 2020 | Tax credits for companies funding bursaries |
| Black-owned SMEs | Double within 20 years | Reduced corporate tax for investment in start-ups |
| Management representation | Reach agreed industry benchmarks | Reduced reporting requirements once achieved |
| Access to capital | Expand development finance | Government-backed loan guarantees |
| Skills development | Apprenticeships and vocational training | Payroll tax rebates |
The sunset clause might have included provisions such as:
- Reviews every five years by an independent commission.
- Clear, published metrics for success.
- Automatic expiry after 20–25 years unless Parliament passed new legislation based on evidence.
- As targets were met, compliance requirements would gradually be reduced rather than ending abruptly.
Such a framework could have offered several advantages:
- Regulatory certainty: Businesses could plan investments knowing exactly how long the programme would last.
- Focus on outcomes: Success would be judged by improvements in education, employment, entrepreneurship and wealth creation rather than by compliance scores alone.
- Reduced administrative burden: As milestones were achieved, companies would spend less time on verification and more on productive activity.
- Political accountability: Government would have to demonstrate measurable progress rather than simply extending or expanding the programme.
Instead, South Africa's empowerment policy evolved incrementally rather than following a fixed roadmap with an end date.
Broadly, the trajectory was:
- 1994–2002: The government pursued transformation through various initiatives, but there was no single, comprehensive BEE framework.
- 2003: The Broad-Based Black Economic Empowerment Act established the legal framework for BEE, with the aim of promoting broader participation in the economy.
- Mid-2000s onward: Detailed Codes of Good Practice were introduced, creating scorecards covering ownership, management control, skills development, enterprise development, procurement, and other elements.
- 2013 revisions: The Codes were significantly revised. Requirements became more stringent in several areas, and certain elements (such as ownership, skills development, and enterprise and supplier development) became "priority elements," meaning companies faced penalties on their scorecards if they did not meet minimum thresholds.
- Sector-specific charters: Industries such as mining, finance, ICT, and others developed their own transformation charters, each with different targets and compliance requirements.
- Ongoing changes: Thresholds, scorecard weightings, verification standards, and procurement rules have continued to evolve over time, often requiring businesses to adapt their compliance strategies.
From the perspective of many businesses, the main criticisms have been:
- Compliance became increasingly complex and costly.
- The rules changed often enough that long-term planning was more difficult.
- Different sectors sometimes had different requirements.
- Smaller firms could find the administrative burden particularly challenging.
Supporters of the approach argue that:
- Economic transformation has taken longer than anticipated.
- Persistent inequality and disparities in ownership and management justified strengthening the policy over time.
- Broad-based measures, including skills development and supplier development, have expanded the focus beyond ownership alone.
So, compared with the hypothetical sunset-clause model you described:
| Sunset-clause model | What occurred |
|---|
| Fixed duration (e.g. 20 years) | No legislated end date |
| Success measured against predefined targets | Ongoing adjustments as policy evolved |
| Compliance gradually reduced as goals were met | Compliance framework generally expanded and became more detailed |
| High regulatory certainty | Periodic legislative and regulatory changes |
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