Black Economic Empowerment - Rationale

Rationale

After the transition of Apartheid in 1994, it was decided by the government of the African National Congress that direct intervention in the redistribution of assets and opportunities was needed to resolve the economic disparities created by Apartheid policies which had favoured white business owners. BEE intended to transform the economy to be representative of the demographics, specifically race demographics of the country. BEE was defined in the 2001 Commission Report as follows,

"It is an integrated and coherent political process. It is located within the context of the country's nation transformation programme, namely the RDP (Reconstruction and Development Programme). It is aimed at change the imbalances of the past by seeking to substantially transfer and confer ownership, management and control of South Africa's financial and economic resources to the majority of the citizens. It seeks to ensure broader and meaningful participation in the economy by black people to achieve sustainable development and prosperity."

— BEE Commission Report, pg. 2

Successful implementers of BEE also see it as a means to create economic growth in South Africa, and as vital to advance their corporate strategy.

However, the ANC ruling party does not consider this direct state intervention in the redistribution of assets, jobs, or opportunities along racial lines to be racial discrimination. Arguably, if not for the constitution, and interference by other political parties, the ANC government would have followed the example of Zimbabwe.