Job creation has been minimal in SA since democracy, claims Solidarity
JOHANNESBURG - Minority lobby group, Solidarity, claims that job creation since 1994 has been minimal, largely due to Broad-Based Black Economic Empowerment (BBBEE) policies.
Solidarity, in collaboration with the Free Market Foundation (FMF), has released a new study outlining the costs associated with BBBEE compliance.
Their findings indicate that these policies have contributed to rising unemployment and have hindered significant economic growth since 1994.
Solidarity CEO Dirk Hermann argues that a complete overhaul of the BBBEE policy would be more beneficial for the country.
'Black Economic Empowerment does not address inequality. It increases as a result of the policy. The paradox is that inequality increases particularly in the black community as a result of a small group of elites, who are being radically enriched.'
Speaking to 702 , prominent businessman Saki Macozoma said BBBEE remains necessary for transformation.
'Empowering people who are previously disadvantaged is the right kind of thing. It may be that the terminology of Black Economic Empowerment is the one that creates the emotion. The fact of the matter is that we need to have the redress, and we have not done it to the extent that we should have.'
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