Broad-Based Black Economic Empowerment

Broad-Based Black Economic Empowerment (BBBEE or B-BBEE as written by the South African government) is a form of Economic Empowerment initiated by the South African government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004. While Narrow Based Black Economic Empowerment led to the enrichment of a few previously disadvantaged individuals (Black African, Coloured or Indian), the goal of Broad-Based Empowerment is to distribute wealth across as broad a spectrum of previously disadvantaged South African society as possible (as long as they are black). In contrast, Narrow Based empowerment measures only equity ownership and management representation.

The Act

The Act essentially works on the understanding that years of systemic racism contribute to contemporary economic woes, and that government intervention can stem the results of past racist regimes. However, the act is highly controversial in nature and some consider its racial preference statements as a direct contradiction to the UN's Universal Declaration of Human Rights. The Broad-Based Black Economic Empowerment Act (53/2003): Codes of Good Practice on Black Economic Empowerment was gazetted on 9 February 2007 in the government gazette 29617. It was put in place to replace earlier editions of the act. An Interpretive Guide was added in June 2007.