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The Guardian - UK
The Guardian - UK
Business
David Smith

Challenges for would-be black economy

During the apartheid era the South African government systematically excluded African, Indian and "coloured" (mixed race) people from meaningful participation in the economy. The release of Nelson Mandela and, in 1994, the first democratic election were giant strides in the fight against racism. But class was something else. The most high-profile legislation aimed at challenging structural inequality is the Black Economic Empowerment programme (Bee).

A "score card" measures companies' progress in four areas: direct empowerment through ownership and control of enterprises and assets; management at senior level; human resource development and employment equity; and indirect empowerment through preferential procurement, enterprise development and corporate social investment.

But Bee has been strongly criticised for enriching a minority of "black diamonds" loyal to the governing African National Congress and driving away white businessmen. Businessman Moeletsi Mbeki, brother of the former president Thabo, has said the policy discourages black entrepreneurship and education.

Whites, who make up only around 10% of the population, remain disproportionately represented in corporate boardrooms. Millions of blacks still live in shacks or basic housing, many without access to electricity, running water or sanitation. Frustrations have boiled over this month, with violent protests in townships over poor service delivery, and mass strikes threatening to cripple the country.

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