New BEE regulations add nails to South Africa’s economic coffin

They say the road to hell is paved with good intentions.  That is certainly the case with South Africa’s BEE, or is it now  BBBEE, per the new requirements of the Broad-based Black Economic Empowerment Act.

Far from stimulating economic empowerment, these requirements cause the success rates of new business to slip to dismal levels and the cost of startups to rocket, with the only winners being the BEE consultants and big businesses which have the knowledge to navigate and comply with bureaucratic BBBEE requirements of multiple government agencies engaged in the transformation process.  Read all about it in this M&G 0n-line report.

The net effect of all this is that everything a South African consumes costs more than it should, fueling inflation and inefficiencies across the whole spectrum of South African society.  

By contrast Direct Democracy Forum policies will do away with as much bureaucratic bumf as possible, focus on that which is absolutely essential for the successful survival of fledgling enterprises, and skill, encourage and free-up the whole of our economy to succeed.  

Correction of imbalances in the economy, namely all those goals hoped for by implementation of BBBEE legislation, will be addressed by market forces being given the freedom to assert themselves.  What business in a  free market South Africa could possibly succeed as well as one which wholeheartedly embraces the black community both as entrepreneurs and as consumers, and the purpose of all business is to succeed as best as possible. But South Africa is both a black based country and a country of diversity that will do better working together than separate.  This is something we should have learned from the mistakes and injustices of the apartheid era.  

Transformational success is all but a given if the right infrastructure, incentives and freedoms are provided for businesses and enterprises to succeed.  A DDF administration will guarantee those conditions.  Alternatively, transformational success in a failed economy will be a hollow victory 

In short, more carrot will succeed where more stick will continue to fail.

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The buck stops at the ballot box.