Academic literature on the topic 'Black economic empowerment'

Broad-Based Black Economic Empowerment (B-BBEE) has been the epitome of policy reform pervading South Africa (SA) since 1994, the end of apartheid. Often making media headlines, it inherently arrogates itself to all stakeholders engaged in commerce with/within SA. This article highlights the results of a qualitative study conducted to investigate recent (2013) changes to the B-BBEE legislative landscape in Cape Town (South Africa), with the focus being on one market segment: Qualifying Small Enterprises (QSEs). These enterprises operate within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from QSEs/SMMEs seemingly rigid response to B-BBEE legislative change.The study’s findings were in line with the researcher’s precedential assumption upon its initiation: legislative change to Broad-Based Black Economic Empowerment (B-BBEE) for Qualifying Small Enterprises (QSEs) led to non-compliance and impeded transformation goals. The results give rise to a plethora of valuable insights into the dynamics of the industry, not only for strategic direction to be set for/by stakeholders on both a micro and macro level, but also providing a solid foundation relative to further research to be embarked upon – a notion highly advocated in supporting the integration of sustainable transformation in modern South Africa (SA).

Abstract: The purpose of this paper is to assess if the Black Economic Empowerment act has brought new economic horizons for the historically disadvantaged South Africans, or it has contributed to further impoverishmentof the lower classes in communities. The paper based its argument on an extensive literature review which envisaged that, despite many years of its implementation, BEE has caused the emergence of classes resulting fromfraud and corruption, fronting, difficulties in registering status, political interference, and poor accountability strategies. The paper interrogates the implementation strategies of BEE in the local government context to assess whether historical imbalances have been addressed or not. The paper concludes that the government needs to revisit BEE as an economic empowerment policy to see whether it has benefited the black majority or not. The paper reiterates further that, BEE as a black economic emancipation blueprint requires proper implementation and alignment with other economic policies such as the National Development Plan to accelerate economic opportunities for the black majority. The paper recommends the government of South Africa through local municipalities to exercise monitoring and evaluation in the BEE procurement systems are prerequisites in safeguarding the manipulation and corrupt tendencies arising from the awarding of tenders in the local government.Key words: Black Economic Empowerment, South Africa, Challenges, Prospects

Republic of South Africa underwent through very significant changes. The discriminatory laws and provisions were cancelled, there were free elections maintained. The government is trying to empower black people. Black Economic Empowerment (BEE) is governmental strategy which seeks to diminish differences between white and so called historically disadvantaged inhabitants. This master thesis provides broad survey of this strategy and analyses its current results.

This study is aimed at determining the effect of Black Economic Empowerment on employees. The objectives of this study were:

• To conceptualize theoretically what Black Economic Empowerment entails and to identify the causes of the Broad Based Black Economic Empowerment Act.
• To determine the physical, emotional, psychological and social effect of BEE on employees and to elaborate on employees’ experiences
.
• To make recommendations regarding the implementation of BEE based on employees experiences.

This qualitative study endeavoured to answer the following research question: “What effect does BEE have on employees?” By answering this question, the researcher aimed to document experiences to understand the effect of this phenomenon on employees and to make recommendations regarding its implementation in the workplace. Probability sampling methods were used to select the respondents and data was gathered by using semi-structured interview schedules. These interviews were taped-recorded, transcribed and analysed by extracting themes and subthemes. The study was feasible as it was within the financial and practical means of the researcher. Permission was obtained from BOSASA to conduct the study, and use their resources, staff and data. The main themes that emerged from the data analysis are as follows:

• Support for BEE
• Criticism of BEE
• The role of communication
• Change leads to mental shifts
• Changes in the working environment affects employees
• Attitude towards change impacts on physical effects
• The importance of development in the implementation of BEE.

From the research findings, the following conclusions and recommendations were made: It can be concluded that there are different opinions regarding the implementation of BEE and we have to acknowledge that there are positive and negative effects thereof. BEE can hold mutual benefits for both employees and the organization, but it is important for open and reciprocal communication channels to be present whilst BEE is being implemented. It was also concluded that although BEE is a legislative process the individuals within the organization definitely experience the ripple effect of the changes that are implemented. On micro-level, it is recommended that all organizations where BEE is being implemented should have open communication channels between themselves and their employees. Opportunities for questions regarding clarity of processes being implemented should be part of the process and communication of information should be reciprocal and not just from a top down approach. On meso-level, it is recommended that different levels of management should receive training regarding BEE, what it entails and how it will be implemented. The reasons for its implementation and the benefits it holds for the organization and employees should be explored during these sessions. On macro-level, it is recommended that the marketing of BEE should become more prominent in the media in South Africa, including newspapers, television and billboards. The emphasis should shift from only reporting on the “large” BEE deals that are done, to the untold stories of the masses that daily experience the positive effects that BEE has had on them as “smaller” organizations and individuals. Organizations should assist in rectifying the harms of the past. It should not only be about implementing BEE for the purpose of getting business deals from government, but also about realizing its significance for the economic growth of our country. This will assist in eradicating fronting and create a culture that is open to change. Copyright
Dissertation (MSW)--University of Pretoria, 2008.
Social Work and Criminology
unrestricted

The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.

Thesis (MA)--University of Stellenbosch, 2004.
ENGLISH ABSTRACT: This study considers Black Economic Empowerment (BEE) in South Africa, and in particular, the various funding structures of Black Economic Empowerment transactions. Whilst these structures have a variety of forms, past experience has suggested some fundamental problems with the actual funding sources and structures. Various definitions and interpretations of Black Economic Empowerment within the context of this paper are discussed. Two BEE strategies are identified, one of which namely, the creation of a broader, more sustainable group of black entrepreneurs for South Africa will be the focus of this paper. The issue of entrepreneurial empowerment will remain an ongoing theme throughout all chapters in this paper. The second BEE strategy, namely, poverty alleviation and employment creation is only briefly discussed although its importance is not underestimated. From the study it is concluded that BEE ought not be a strategy aimed at the enrichment of a select group of black elite. Lessons learnt from past failures are also highlighted. A historical analysis of the provision of funding to historically disadvantaged people (HDP)1 in South Africa is presented. The theme of inequality in providing access to finance for black entrepreneurs and small businesses is looked at in this context. The historical analysis starts with the early years in South Africa and then focuses on the period 1990 – 1999. This report also provides a critical assessment of some of the biggest shortcomings of the pyramid structures and complex financial engineering of the first attempts of Black Economic Empowerment in the narrow sense of the word. It is established that the Special Purpose Vehicle funding structures of the late 1990s were a failure. Further, this study looks at current financing options and possible solutions. Some recent examples are also provided of BEE funding structures which seem to have worked. Traditional government institutions such as the Industrial Development Corporation, in particular, have also come a long way in developing more viable funding in transactions with BEE companies. It is also noted that recent alternative financing structures by the private sector are addressing some of the key challenges of BEE such as ownership, control and the promotion of sustainable black businesses for the transformed South African economic landscape going forward. However, many obstacles remain with the potential sources of funding of BEE such as traditional banks and life assurers in South Africa who are still not more accessible to the poor. Fundamental problems have also been identified in the analysis of the Development Finance Institutions (DFIs) of government such as the National Empowerment Fund, Khula Enterprises and the Land Bank which are also anticipated to play a crucial role in the provision of financing for BEE over the coming years. This study highlights the significant cost involved with the implementation of the BEE strategies. The single biggest challenge to the economic empowerment of the previously disadvantaged is access to funding. About the need for broad-based Black Economic Empowerment in South Africa, there is no dispute. But it is important that these costs are weighed against other sustainable development objectives. The private sector often seems to see BEE as a cost rather than an opportunity. But while the shortcomings of numerous empowerment initiatives, exacerbated by the 1998 stock market crash, may have caused the financial sector to get cold feet about these transactions, the sector can come up with some creative options that go beyond old problems. Therefore, the future role of government financed institutions together with the private sector remains critical in ensuring that these objectives are met. In conclusion, the discussion on the funding of Black Economic Empowerment in South Africa must be seen within the context of the political and economic landscape of the 1900s and then in particular, the history of the past ten years. Narrowly defined black economic empowerment has gained significant momentum in recent years due to the economic restructuring of the business sector which has been propelled by recent government legislation such as the Mining Charter, the Black Economic Empowerment Commission’s recommendations, the Department of Trade and Industry’s discussion documents and other legislation currently in the pipeline. However, the economic landscape still looks bleak. Real economic growth has been inadequate since large parts of our population are still unemployed. A significant hurdle still facing our economy is the high degree of wealth inequality that exists. It is within this context that one should assess the many policy and funding initiatives that have been taken and the strategies proposed to redress historical imbalances in the country. The paper itself is comprised of six parts. This executive summary only serves to provide a brief overview of the various areas covered in this study. Chapter One analyses the various definitions of the term Black Economic Empowerment, their relevance and the development of BEE in South Africa over the years. This leads to a discussion in Chapter Two on the problem statement, being the funding of BEE. Chapter Three is divided into seven sub-sections and provides a historical analysis of the funding obstacles facing black people since the early 1900s, then looks at developments of BEE since the early 1990s with a critical assessment of the failures of empowerment and the funding structures utilized during this period. Chapter Three also identifies various similarities and lessons learnt from examples of empowerment experiences in other countries. Chapter Four looks at the estimated size of the funding requirement and current sources of financing from the private and public sector. Certain conclusions are drawn from this overview. Chapter Five looks at the major risks facing the impact of BEE and the financing thereof in the future. Chapter Five also applies the criteria for appropriate funding of BEE to a recent BEE transaction in the form of a case study. Some possible solutions are also put forward in this section of the analysis. Chapter Six summarises and concludes. 1 Note that HDP incorporates all disadvantaged groupings such as the Black, Indian, Coloured populations of South Africa. In historical terms it also includes the various tribes that existed in South Africa during the early years as well as those who were slaves. Africa during the early years as well as those who were slaves.
AFRIKAANSE OPSOMMING: Hierdie studie ondersoek Swart Ekonomiese Bemagtiging (SEB) in Suid-Afrika, en in die besonder die verskillende befondsingstrukture van Swart Ekonomiese Bemagtigingstransaksies. Hoewel hierdie strukture ’n verskeidenheid vorms mag hê, het ondervinding getoon dat daar wesentlike probleme is wat die werklike befondsingsbronne en -strukture betref. Verskillende definisies en vertolkings van Swart Ekonomiese Bemagtiging binne die konteks van hierdie verhandeling word bespreek. Twee SEB-strategieë word geïdentifiseer, waarvan een, naamlik die daarstelling van ’n meer omvattende en meer volhoubare groep swart entrepreneurs vir Suid-Afrika, die fokuspunt van hierdie verhandeling sal wees. Die vraagstuk van entrepreneuriale bemagtiging sal ’n deurlopende tema in alle hoofstukke van hierdie verhandeling bly. Die tweede SEBstrategie, naamlik armoedeverligting en werkskepping word slegs vlugtig bespreek, alhoewel die belang daarvan nie onderskat word nie. ’n Gevolgtrekking van die studie is dat SEB nie ’n strategie behoort te wees wat op die verryking van ’n uitgesoekte swart elite-groep gerig is nie. Lesse wat uit mislukkings van die verlede geleer is, word ook belig. ’n Geskiedkundige ontleding van die voorsiening van befondsing aan voorheen benadeelde mense in Suid-Afrika word gebied. Die tema van ongelykheid in die bied van toegang tot finansiering vir swart entrepreneurs en klein besighede word binne hierdie verband bekyk. Die geskiedkundige ontleding begin met die vroeë jare in Suid-Afrika en fokus vervolgens op die tydperk 1990 – 1999. Hierdie verslag bied ook ’n kritiese evaluering van sommige van die grootste tekortkomings van die piramidestrukture en ingewikkelde finansiële geniëring van die eerste pogings tot Swart Ekonomiese Bemagtiging in die eng sin van die woord. Daar word bewys dat die Gespesialiseerde Voertuig-befondsingstrukture van die laat 1990’s ’n mislukking was. Hierdie studie kyk boonop na huidige finansieringsopsies en moontlike oplossings. ’n Aantal onlangse voorbeelde van SEBbefondsingstrukture wat klaarblyklik suksesvol was, word ook gebied. Tradisionele regeringsinstansies, soos die Nywerheidsontwikkelingskorporasie in die besonder, het ook heelwat vordering getoon wat die ontwikkeling van meer lewensvatbare befondsing in transaksies met SEB-maatskappy betref. Daar word ook gelet op die feit dat onlangse alternatiewe finansieringstrukture deur die privaat sektor sommige van die sleuteluitdagings van SEB, soos eienaarskap, die beheer en bevordering van volhoubare swart besighede vir die transformerende Suid-Afrikaanse ekonomiese landskap, aanspreek. Daar is egter steeds talle struikelblokke wat die potensiële befondsingsbronne van SEB betref, soos tradisionele banke en lewensversekeraars in Suid-Afrika wat steeds nie meer toeganklik vir die armes is nie. Wesentlike probleme is ook geïdentifiseer in die ontleding van die regering se Ontwikkelingsfinansieringsinstansies, soos die Nasionale Bemagtigingsfonds, Khula Enterprises en die Landbank, wat na verwagting ook ’n beslissende rol in die voorsiening van finansiering vir SEB in die komende jare sal speel. Hierdie studie belig die aansienlike koste wat by die implementering van die SEBstrategieë betrokke is. Die grootste enkele uitdaging vir die ekonomiese bemagtiging van voorheen benadeeldes is toegang tot befondsing. Die behoefte aan omvattende Swart Ekonomiese Bemagtiging in Suid-Afrika word nie betwis nie. Maar dis belangrik dat hierdie koste opgeweeg moet word teen ander volhoubare ontwikkelingsdoelwitte. Dit wil voorkom asof die privaat sektor SEB as ’n uitgawe eerder as ’n geleentheid beskou. Maar alhoewel die tekortkominge van talle bemagtigingsinisiatiewe, wat deur die ineenstorting van die aandelemark in 1998 vererger is, daartoe kon gelei het dat die finansiële sektor bra lugtig vir hierdie transaksies is, kan die sektor tog met skeppende opsies vorendag kom om ou probleme die hoof te bied. Die toekomstige rol van staatsgefinansierde instansies in samewerking met die privaat sektor bly dus deurslaggewend om te verseker dat hierdie doelwitte bereik word. Kortom, die bespreking van die befondsing van Swart Ekonomiese Bemagtiging in Suid-Afrika moet gesien word binne die konteks van die politieke en ekonomiese landskap van die 1900’s en die geskiedenis van die afgelope tien jaar in die besonder. Eng gedefinieerde swart ekonomiese bemagtiging het in die laaste paar jaar aansienlike stukrag verkry danksy die ekonomiese herstrukturering van die sakesektor, wat verder aangedryf is deur onlangse regeringswetgewing soos die Mynbouhandves, die aanbevelings van die Swart Ekonomiese Bemagtigingskommissie, die Departement van Handel en Nywerheid se samesprekingsdokumente en ander wetgewing wat tans beplan word. Die ekonomiese landskap lyk egter steeds allesbehalwe rooskleurig. Reële ekonomiese groei is onvoldoende aangesien groot gedeeltes van ons bevolking steeds werkloos is. ’n Betekenisvolle struikelblok wat ons ekonomie steeds in die gesig staar, is die groot mate van ongelyke welvaart wat bestaan. Dit is binne hierdie verband wat die talle beleids- en befondsingsinisiatiewe geëvalueer moet word wat onderneem is en strategieë wat voorgestel is om die geskiedkundige wanbalanse in die land aan te spreek. Die verhandeling self bestaan uit ses afdelings. Hierdie inleiding dien slegs om ’n bondige oorsig te gee van die onderskeie temas wat in hierdie studie gedek word. Hoofstuk Een ontleed die verskillende definisies van die uitdrukking Swart Ekonomiese Bemagtiging, hul tersaaklikheid en die ontwikkeling van SEB in Suid- Afrika oor die jare. Dit gee aanleiding tot ’n bespreking in Hoofstuk Twee van die probleemstelling, naamlik die befondsing van SEB. Hoofstuk Drie is in sewe onderafdelings verdeel en bied ’n geskiedkundige ontleding van die befondsingstruikelblokke wat swart mense sedert die vroeë 1900’s in die gesig staar, waarna dit ontwikkelings op die gebied van SEB sedert die vroeë 1990’s ondersoek, met ’n kritiese evaluering van die mislukkings van bemagtiging en die befondsingstrukture wat in hierdie tydperk toegepas is. Hoofstuk Drie identifseer ook verskillende ooreenkomste tussen en lesse wat geleer is uit voorbeelde van bemagtigingsondervinding in ander lande. Hoofstuk Vier kyk na die geskatte omvang van die nodige befondsing, asook huidige bronne van finansiering uit die privaat en openbare sektor. Sekere gevolgtrekkings word aan die hand van hierdie oorsig gemaak. Hoofstuk Vyf belig die grootste risiko’s wat die impak van SEB in die gesig staar, asook die toekomstige finansiering daarvan. Hoofstuk Vyf pas boonop die kriteria vir genoegsame befondsing vir SEB op ’n onlangse SEB-transaksie in die vorm van ’n gevallestudie toe. ’n Aantal moontlike oplossings word ook in hierdie afdeling van die ontleding gebied. Hoofstuk Ses vat saam en kom tot ’n slotsom.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007.
ENGLISH ABSTRACT: The Western Cape tourism industry offers a variety of attractions and has the potential to grow further in the next couple of years. According to the statistics provided by Cape Town Routes Unlimited (CTRU) the province is among the three provinces that received the highest number of tourists in the last few years. The critical challenge that the province now needs to look at, is the participation of previously disadvantaged individuals in the mainstream tourism industry. Tourism stakeholders see Black Economic Empowerment (BEE) as an important vehicle for transformation. Although little progress has been made so far, there is a will among all stakeholders to transform the tourism industry. Some of the key challenges raised by the study on the efforts towards greater BEE were lack of finance for BEE businesses, access to the market and lack of skills. Professionalism and good quality service of international standards was also seen to be very important by respondents. The report also looks at two successful deals that were brokered in the tourism industry, namely one by Sun International and the other, the merger between Grass Route Tours and African Eagle Day Tours. In the fieldwork twenty businesses were interviewed, ranging from accommodation and tour operator to restaurants. This was not a random sample, but rather an attempt to target those that were part of the database of Cape Town Routes Unlimited (CTRU). The research tool used by the author of this report was a qualitative and quantitative structured questionnaire. The responses shed further light on some of the Black Economic Empowerment challenges faced by the Western Cape tourism industry. These results will supplement information already available to Cape Town Routes Unlimited. Eventually the findings will be tabled and recommended to relevant stakeholders for action.
AFRIKAANSE OPSOMMING: Die Weskaapse toerismebedryf bied ‘n verskeidenheid aantreklikhede en het die potensiaal om te groei oor die volgende paar jaar. Cape Town Routes Unlimited (CTRU) statistieke toon dat die Weskaap een van die drie provinsies landwyd is wat die meeste toeriste groei oor die laaste paar jaar getoon het. Die Weskaap se grootste uitdaging is nou om meer geleenthede in die hoofstroom van die bedryf te bied aan die voorheen onderdrukte individuë. Oor die algemeen beskou belangegrope in die bedryf die BEE as ‘n belangrike middel tot transformasie. Die vordering is tot dusver egter nog maar min, alhoewel daar eenstemmigheid bestaan om die toerismebedryf te omskep en te transformeer. Die studie toon die grootste struikelblokke tot vinniger BEE as die volgende: ‘n tekort aan finansiering vir BEE besighede asook ‘n tekort aan ondervinding en bekwaamheid. Professionalisme sowel as dienskwaliteit (vergeleke met internasionale standaarde) word ook as belangrik beskou. Twee suksesvolle BEE–onderhandelinge word in die studie in besonderhede bespreek, naamlik Sun International en die samesmelting van Grass Route Tours and African Eagle Day Tours. Die studie verwerk onderhoude wat gevoer is met twintig besighede wat akkommodasie, toeroperateurs sowel as restaurante ingesluit het. Dit omvat nie ‘n steekproef nie, maar is gebaseer op die CTRU databasis. Die onderhoude is gevoer met ‘n gestruktureerde kwalitatiewe en ‘n kwantitatiewe vraelys. Uit die terugvoerings het verdere BEE stuikelblokke vorendag gekom. Dit is aanvullend tot informasie verkry vanaf CTRU. Al hierdie resultate sal in verwerkte vorm aan belanghebbende groepe beskikbaar gestel word.

The Government of South Africa has placed a lot of emphasis on economic growth and the involvement of Black people in the mainstream of the economy. The implementation of Broad-Based Black Economic Empowerment (B-BBEE) created opportunities for direct empowerment of Black females in ownership and management. The Construction Industry is being challenged to increase the number of Black females in management and ownership levels. Due to the nature of the Industry, only a small population of females considers Construction as a career option. The Industry has also lost a significant number of skilled Engineers and is experiencing a shortage of skilled managers in Middle and Senior Management Levels. The research problem questioned the current state of empowerment for Black women in the Construction Industry as measured against the B-BBEE Scorecard. The literature review focused on the requirements of the B-BBEE scorecard and Construction Charter. The second phase focused on gender equality and the achievements of women in Construction. The research design was done by using questionnaires to the South African Federation of Civil Engineering Contractors (Safcec) members in the Eastern Cape. The research design and survey aimed to determine the status of empowerment in the Construction Industry. With reference to both the literature review and the empirical findings the state of female empowerment can be determined. Therefore iv recommendations and opportunities for further research in this regard can be identified.

Thesis (MDF)--Stellenbosch University, 2011.
This study considers the impact that the particular funding structure used in the financing of black economic empowerment (BEE) transactions has on the expected outcome. Various structures are evaluated, each with their particular advantages and disadvantages. The report details the history of South Africa, the Industrial Development Corporation (IDC), as well as the black economic empowerment phenomenon. An in-depth commentary on the financing structures used for BEE transactions within the IDC is presented together with a new, remodeled structure to be used in the analysis as part of a comparative study to determine whether the existing preferential Vanilla Special Purpose Vehicle (SPV) structure garners the most appropriate result for the BEE entrepreneur. The statistical study tests whether the Vanilla SPV structure, where the financier is reliant on dividends for the repayment of their preference shares, is a better structure than the reworked SPV structure, where the financier is reliant on free cash flow for repayment. The results infer that access to free cash flow is preferred by both the financier, as well as the BEE party, as vesting is higher and the bullet payment required to attain that vesting is significantly lower.

Includes bibliographical references (leaves 177-187).
This study develops a theoretical framework for Broad-Based Black Economic Empowerment, using a Human Capital Development approach. This framework is then employed to evaluate the Codes of Good Practice on Broad Based Black Economic Empowerment (BBBEE) (Department of Trade and Industry, 2005; 2007). A 'mixed methods research approach' is utilized, in some kind of triangulation. Three research methods are used starting with focus groups; then content analysis and finally descriptive analysis. Phase one utilizes focus groups to construct the key elements of the Draft BBBEE Scorecard for Employment Equity; Skills Development and Organisational Transformation (2005). In phase two, content analysis (documentation analysis) is applied to compare and contrast the draft BBBEE Scorecard of 2005 with the final BBBEE Scorecard of 2007, using the human capital development framework for the propositions. The third phase is designed to test proposition three, which enquires into the actual implementation of BBBEE by employers. This phase utilizes secondary data from various official reports of the Commission for Employment Equity (2000-2007) to measure the nature and extent of progress on Employment Equity; Skills Development and Management Control by employers, in relation to the BBBEE policy and its targets. The BBBEE Scorecards for Employment Equity and Skills Development are found to be generally in line with human capital development principles. The Organisational Transformation Index that was in the 2005 Draft BBBEE Scorecard is found to be a useful mechanism for moving away from a transaction-based approach to BBBEE toward a transformation-based approach. To this effect, the absence of the Organisational Transformation Index in the final Codes and Scorecards of 2007 is lamented. A recommendation is made for more emphasis to be placed on the transformation of companies/ organisations. The leadership role of Chief Executive Officers and their top management in the BBBEE process is propagated. At the leadership level, the Transformational Leadership approach is posited as the one that holds a better chance of driving BBBEE successfully. Quo Vadis; the study recommends two different theoretical frameworks; a Human Capital Development framework for BBBEE at the macro-level (national policy and strategy) and the Transformational Leadership-Organisational Transformation one at the micro-level. BBBEE, it is held; ought to be integrated into the country's new National Industrial Policy Framework. Conversely, the BBBEE targets and goals should also be aligned to the country's long-term socio-economic growth strategies.

One of the key challenges of South Africa’s democratic project has been supporting the effective participation of the previously excluded black majority in the economy. The broad-based black economic empowerment (BBBEE) policy, as the primary tool employed to drive racial transformation, is assessed and found to have had a limited impact, although there has been some progress. The chapter considers the link between structural transformation and black economic empowerment in three key parts. First, relevant literature is drawn on to build the argument that inclusion matters for structural transformation. Second, is an examination of the factors that have underpinned the challenges with the implementation of BBBEE to open up the economy for broader participation, including its limited focus on key barriers to entry, and the implications for structural transformation in South Africa. Third, the chapter presents a case study based on a survey of applicants under the government’s ‘black industrialists scheme’ as a critical evolution from, and alternative to, the approach followed with BBBEE, as it is able to contribute to both racial and structural transformation of the economy. The chapter concludes with a reflection on the roles of black economic empowerment and the black industrialists scheme, barriers to entry, and structural transformation of the economy.