New study by FMF, Solidarity claims BEE has benefitted 'small group of elite black people'

JOHANNESBURG - Debate continues around the effectiveness of Broad-Based Black Economic Empowerment (BBBEE), with some minority groups arguing the policy has failed to deliver its intended outcomes.

A new study released by the think tank, Free Market Foundation, and minority lobby group, Solidarity, outlined the costs associated with BBBEE compliance.

The report claims that the policy has primarily benefited a small group of elite black individuals while neglecting broader objectives.

The findings were shared during a media briefing held in Johannesburg earlier on Thursday.

Previous studies estimate that South Africa’s black middle class comprises between four to six million individuals, with an annual spending power of more than R400 billion.

Although this represents only a small portion of the overall black population, the growth of this segment is largely credited to inclusion efforts driven by BBBEE policies.

Head of policy at the Free Market Foundation, Martin van Staden, argued that race had been used to benefit a specific group within society rather than promoting a more inclusive approach.

"Should people be appointed based on race or meritocratic experience? Race should not be the primary criterion or probably a criterion at all. People should be appointed based on merit."

Solidarity’s report states that the growth of the black middle class is clear but asserts that BBBEE has led to greater inequality within the white population.

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