Did Broad Based Black Economic Empowerment fail?
A lot of fronting is going on. The DTI is spot-on with its clarification notice. Business, in a typical fashion, has used the broadness of BBBEE to avoid empowerment.Onkgopotse JJ Tabane, Columnist and Communications Expert
Did investors actually benefit from broad based schemes? Or was it really a failure as some claim?
Craig Gradidge, Investment Specialist at Gradidge Mahura Investments, said in a recent article that he has witnessed firsthand the ability of Broad Based Black Economic Empowerment share offers to grow the investor base in South Africa.
It has, he says, brought many new participants into the formal financial sector and he’s concerned that BBBEE, which he supports in principle, will now lose its “broad basedness”.
We interviewed Gradidge and Tabane.
Scroll down to listen to the audio.
BBBEE had its flaws, but returning to narrow empowerment is not the solution. We've seen the positive spin-offs of BBBEE schemes.Craig Gradidge, Investment Specialist at Gradidge Mahura Investments