It’s true: BBBEE is a misnomer and a façade

THE ARTICLE by Mxolisi Buthelezi published in Business Report on Wednesday was absolutely factual and to the point regarding black economic transformation and BBBEE, which is a misnomer and a façade.

Multinationals, JSE-listed companies, major corporations and big businesses have this thing above BBBEE scores/certificate of having level 3 and below as compliant to the Department of Trade and Industry definitions by placing the Power Distance Index (PDI) on strategic positions and saying “I have arrived”.

Ownership/shares are limited to a selected few and decision-making in the board room, I would suppose, is non-existent, but merely a figurehead to say there are black persons in the room.

The Fuels Charter made it compulsory for oil majors to have 25+1 Black Economic Empowerment, who in turn have become fat cats that are ignoring the empowerment of other PDI entrepreneurs as part of a multiplier economic transformation process.

Unfortunately for emerging Small, Medium and Micro-sized Enterprises (SMME’s), these very same black empowered companies benefiting from the government policy regard SMME’s as high-risk, small, lacking in potential and skills and so avoid them.

They are very willing to support major companies that have been trading for decades and hold a monopoly of the economics of this country and a big bank balance.

You will always have start-up entrepreneurs with either IP or skills, but who lack a big bank balance – even though they have the tenacity and potential to make inroads into the industrial or other economies.

President Cyril Ramaphosa has said on numerous occasions that the economy must be deconcentrated and shared by the people of this country who, I would say, have been historically disadvantaged.

The signing of the amendment of the Competition Bill 2018 on February 14, by the President, was a true reflection of the intent of the government, but will this make any meaningful change? Only time will tell.

The true test of this working will depend on the will of the multinationals, JSE-listed companies, major corporations and big business to apply their minds as to how they will incorporate this into their business model or strategy.

As an entrepreneur myself, I know first hand how difficult it is to be a small fish in the deep ocean and hope that big business will take heed by allowing PDI potential entrepreneurs who have business acumen, tenacity or talent to start up an SME and then take it to the next level.

ANONYMOUS

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