In line with this vision, the DA’s Social Impact Bill seeks to repeal the Broad-Based Black Economic Empowerment Act (BBBEE) and references to it in other legislation. Instead, the Bill proposes the adoption of Sustainable Development Goals (SDGs) within ancillary Acts.
The BBBEE policy, rooted in the concept of “trickle-down redress,” has proven ineffective in promoting economic inclusion. Currently, it tends to benefit politically connected, already wealthy, or highly educated individuals, excluding the majority of South Africans who were meant to benefit from it.
The Social Impact Bill will eliminate BBBEE considerations and amend the Preferential Procurement Policy Framework Act (PPPFA) to incorporate a company’s contributions towards a range of SDGs, under certain circumstances, thereby giving practical effect to the DA’s Economic Justice Policy. This shift will enhance social and economic development, particularly for vulnerable communities across the country.