Mediaclubsouthafrica.com – Media Club South Africa
South Africa's policy of black economic empowerment (BEE) is not simply a moral initiative to redress the wrongs of the past. It is a pragmatic growth strategy that aims to realise the country's full economic potential.
In the decades before South Africa achieved democracy in 1994, the apartheid government systematically excluded African, Indian and coloured people – collectively known as “black people” – from meaningful participation in the country's economy.
This inevitably caused much poverty and suffering – and a profoundly sick economy.
The distortions in the economy eventually led to a crisis, started in the 1970s, when gross domestic product growth fell to zero, and then hovered at about 3.4% in the 1980s. At a time when other developing economies with similar resources were growing, South Africa was stagnating.