Black Economic Empowerment in South Africa: Challenges and Prospects

  • Elvin Shava North West University

Abstract

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

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Published
2017-01-24
How to Cite
SHAVA, Elvin. Black Economic Empowerment in South Africa: Challenges and Prospects. Journal of Economics and Behavioral Studies, [S.l.], v. 8, n. 6, p. 161-170, jan. 2017. ISSN 2220-6140. Available at: <http://ifrnd.org/journal/index.php/jebs/article/view/1490>. Date accessed: 30 apr. 2017.
Section
Research Paper