B-BBEE Summary By Saki Mabhele
South Africa has a history of racial division where one race was dominant over all other races. There was a systematic process that was adopted by the South African government of the time to encourage and safeguard white supremacy. As a result of this, certain laws were created to marginalise Black communities, Coloureds, Indians etc. These laws were so ruthless that black people were not permitted to engage in certain activities and they were deliberately excluded from participating in the mainstream of the economy. This meant that black people, due to the colour of their skin, were subjected to a permanent state of lack, poverty and deprivation. Key resources were reserved for the white minority and the proceeds of national resources benefited mainly white South Africans.
In 1994 a new democratic government came into power and there was a need to redress the imbalances that were created by the legacy of the apartheid regime. The new dispensation necessitated new laws in order to reduce the damage that was caused by the apartheid government and the Broad-based Black Economic Empowerment Act, [No. 53 of 2003] was born. The aims of the B-BBEE act was to advance economic transformation and enhance the economic participation of black people in the South African economy.