SA Politics Thread Part 10 : The GNU Has Crashed

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TheChamp said:
Then what the hell are you moaning about exactly? If he says he encourages more investment in manufacturing and job creation you want to see the jobs in 24 hrs after he has spoken?
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That is not how the Chinese work when investing in a country. Everything in that factory will be Chinese not a single local company will benefit from its construction or operation and you will be lucky if it employs a single South Africa. You can ask the people in Dwaalboom what happened once the Chinese took over the local cement factory and moved to Chinese suppliers shunning the local suppliera and workforce.
 
Inertia said:
Does anyone have details on these so-called "Equity Equivalents"? Are they legit or just another backhanded way to enrich cadres?
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The_Right_Honourable_Brit said:
The only thing I know about Equity Equivalents is they've only been implemented in the automotive sector since 2019 but haven't seen anything written about its effectiveness (or lack thereof).

Edit: Here's a presentation : https://www.thedtic.gov.za/wp-content/uploads/the-dtic.EEIP_.pdf
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I asked DeepSeek:
What can you tell me about the "Equity Equivalents" policy framework in South Africa?
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The Equity Equivalents (EEQ) Programme is an innovative policy framework in South Africa designed to support Broad-Based Black Economic Empowerment (B-BBEE) for multinational companies (MNCs) that cannot meet traditional ownership requirements due to their global ownership structures.

Key Aspects of the EEQ Policy Framework:​

  1. Purpose
    • The EEQ programme allows multinationals to contribute to economic transformation without diluting their global shareholding.
    • It provides an alternative for MNCs to meet B-BBEE requirements by investing in development initiatives instead of selling equity to Black South Africans.
  2. Legal Basis
    • The framework is governed by the B-BBEE Act (2003) and the Revised B-BBEE Codes of Good Practice (2013).
    • The Department of Trade, Industry and Competition (DTIC) oversees the programme.
  3. Eligibility
    • Only multinationals with global ownership structures that prohibit ≥25% local equity sale can apply.
    • Companies must demonstrate that their parent company cannot comply with standard ownership requirements.
  4. Investment Requirements
    • Companies must invest a percentage of their annual South African revenue (typically 2–4%) into approved EEQ programmes over 5–10 years.
    • Investments must be non-recoverable (no financial return expected).
  5. Approved EEQ Programmes
    Investments must align with national development goals, such as:
    • Enterprise & Supplier Development (supporting Black-owned businesses)
    • Skills Development & Education (scholarships, training, STEM initiatives)
    • Socioeconomic Development (healthcare, infrastructure, rural development)
    • Agricultural Development (supporting Black farmers)
  6. Recognition & B-BBEE Points
    • Successful EEQ programmes can earn B-BBEE recognition under the Ownership pillar (up to Level 4 or higher).
    • The DTIC and B-BBEE Commission must approve the projects before points are awarded.
  7. Examples of EEQ Programmes
    • Unilever SA’s U-Touch programme (enterprise development for small businesses).
    • Nestlé SA’s agricultural initiatives supporting Black dairy farmers.
    • Coca-Cola’s youth skills development programmes.

Challenges & Criticisms​

  • Administrative complexity in approval and monitoring.
  • Some argue EEQ allows MNCs to avoid true ownership transformation.
  • Ensuring measurable impact remains a challenge.

Conclusion​

The EEQ framework is a pragmatic solution for MNCs to contribute meaningfully to South Africa’s economic transformation while maintaining their global structures. However, its effectiveness depends on strict oversight and genuine developmental impact.
Would you like details on a specific company’s EEQ programme?
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Blu82 said:
That is not how the Chinese work when investing in a country. Everything in that factory will be Chinese not a single local company will benefit from its construction or operation and you will be lucky if it employs a single South Africa. You can ask the people in Dwaalboom what happened once the Chinese took over the local cement factory and moved to Chinese suppliers shunning the local suppliera and workforce.
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Don't you understand how the BEE you are always complaining about work?

Screenshot_20250524_175632.jpg
 
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