Today South Africa wakes up to a R6 billion rands BEE deal announcement by SABMiller. The deal will move about 10% of the company’s shares to black ownership. About 40% of the beneficiaries will be liquor retailer of which most of these are located in black townships. We have seen a number of these transactions although some of them failed because there lacked proper support which would see beneficiaries able to play their part.
These deals currently total just over R285 billion in just one decade. I am not sure that these are sustainable enough and whether they do translate to the transfer of wealth from white dominance. It appears that not all people of South Africa welcome this initiative of BEE with whites being the main opponents of the move. We saw just before the 2009 elections, most opposition parties were calling for BEE to be withdrawn completely.
They claimed that it has resulted in the shortage of skills although I am not convinced that this is the case. The DA was at the forefront of this initiative and some individuals who seem to sympathise with minority movements.
No comments:
Post a Comment