Black Economic Empowerment facts for kids

An advert for a company specialising in making South African companies compliant with Black Economic Empowerment (BEE) regulations and government procurement policies.

Black Economic Empowerment (BEE) is a special plan started by the South African government. It aims to fix unfairness from the past, especially from a time called Apartheid. BEE helps black South African citizens get more economic chances. This includes people who are African, Coloureds, Indians, and Chinese.

BEE is a way to help people who were held back in the past. It gives them better opportunities in business and work. By 2015, big companies in South Africa had done about R350 billion (which is like US$24 billion) worth of BEE deals. Other private companies added another R50 billion. This shows that a lot of economic value has moved to help more people.

What is Black Economic Empowerment?

Black Economic Empowerment, or BEE, is a program designed to make the economy fairer in South Africa. It focuses on giving more chances to people who were disadvantaged in the past. The main goal is to share economic wealth and opportunities more widely. It's a type of Affirmative action, which means taking steps to ensure equal opportunities.

Why was BEE created?

BEE was created to correct the problems caused by Apartheid. Apartheid was a system in South Africa that treated people unfairly based on their race. It limited opportunities for black South Africans in many areas, including business and jobs. After Apartheid ended, the government wanted to build a more equal country. BEE was launched to help overcome these past inequalities and create a more inclusive economy.

How does BEE work?

BEE works in several ways to help black South Africans get more involved in the economy. Here are some of the main parts:

• Jobs and Skills: It encourages companies to hire more black South Africans and to train them with new skills. This helps more people get good jobs and grow in their careers.
• Business Ownership: BEE helps black South Africans own and manage businesses. This can mean buying shares in existing companies or starting new ones.
• Community Development: Some parts of BEE focus on helping communities. This can involve projects that improve living conditions or support local businesses.
• Government Buying: The government often chooses to buy goods and services from companies that follow BEE rules. This gives these businesses a better chance to grow.

What has BEE achieved?

Since it started, BEE has helped transfer a lot of economic value. For example, by 2015, about 10 percent of South Africa's total economic output (GDP) had been transferred. This money and value went to about 20 percent of the population over 15 years. This shows how BEE has worked to create more economic opportunities for many people.

Images for kids

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  Patrice Motsepe is well-known as a beneficiary of various multimillion-rand BEE transactions in the 1990s.

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  Cyril Ramaphosa chaired the BEE Commission.

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  President Thabo Mbeki supported the growth of black business leaders.

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  Pieter Groenewald of the FF+ is an outspoken opponent of BEE.