Though there is evidence that the majority of previously disadvantaged groups are yet to benefit from black economic empowerment (BEE) policy, one area where the scheme has succeeded is creating black dollar millionaires.
New World Wealth reports that almost half of South Africa’s dollar millionaires – that is those with a net value of R14.5m or more – are from previously disadvantaged groups. They are black, coloured, Indian or Chinese.
At 17 300 the number of dollar millionaires from previously disadvantaged groups has increased by 14% since 2007.
Despite producing dollar millionaires, South Africa, a middle income country, is still ranked as one of world’s unequal country, with a wide gap between the very rich and poor. In addition, the 16th Commission for Employment Equity report laments that only few previously disadvantaged groups are climbing up the corporate ladder.
