A Wits School of Governance expert says South Africa's black economic empowerment program has made poverty worse. William Gumede told officials that BEE policies hurt most people and help only a few connected leaders. The government asked him to study how the program works across the country. His research shows unemployment and inequality grew since BEE started. Poor communities still struggle after decades of these policies.
Gumede found that one trillion rand moved between fewer than 100 people since 1994. The same individuals keep getting money from new BEE deals over and over again. Many people create fake companies just to win government contracts and funding. Real business owners without political connections cannot access BEE benefits. The current system blocks genuine entrepreneurs from starting or growing their companies.
The Institute of Race Relations wants parliament to answer for failed BEE oversight. Hermann Pretorius says lawmakers must explain how many jobs and investments disappeared because of empowerment rules. His group sent letters to 64 parliament members asking for accountability. Companies like Starlink faced barriers entering South African markets due to empowerment requirements. Racial quotas discourage foreign businesses from investing money and creating local jobs.
Gumede found that one trillion rand moved between fewer than 100 people since 1994. The same individuals keep getting money from new BEE deals over and over again. Many people create fake companies just to win government contracts and funding. Real business owners without political connections cannot access BEE benefits. The current system blocks genuine entrepreneurs from starting or growing their companies.
The Institute of Race Relations wants parliament to answer for failed BEE oversight. Hermann Pretorius says lawmakers must explain how many jobs and investments disappeared because of empowerment rules. His group sent letters to 64 parliament members asking for accountability. Companies like Starlink faced barriers entering South African markets due to empowerment requirements. Racial quotas discourage foreign businesses from investing money and creating local jobs.
