Dancing in concert? – aligning Broad-Based Black Economic Empowermentto (B-BBEE) sector strategies, structural transformation and growth

Abstract

Abstract:This article considers the history of the different eras of 'black empowerment' under different political-administrative frameworks. This allows insights to be drawn from the changes and continuities in policy, regulation and economic actions that account for the current successful and failed outcomes. Black empowerment has meant different things to different actors across these periods. Notwithstanding the implications of these different episodes in black empowerment, approaches that sought to mobilise black consumption and savings to achieve economic power, or to build institutions for mutual economic support remain an important interpretation of the empowerment project. In the democratic era, early approaches to B-BBEE were based on an implicit bargain between established capital and the black middle class and political elites, in return for macroeconomic stability, capital liberalisation and incremental, market-focused capital reform. Moreover a key concern has been how black empowerment can be reconciled with a coherent state-led antipoverty and developmental strategy that focuses on expanding economic participation by the black poor and the working class. Reframing B-BBEE requires consideration of the tools at our disposal–state owned entities, development finance institutions and industrial financing, employment equity, enterprise development and skills development legislation. These tools must be marshalled in the direction of new products, new market opportunities and industries. The paper considers some of the competition policy and regulatory design hurdles that need to be overcome to achieve these objectives and the policy and regulatory agenda for change, that can underpin this pursuit.