Equality is generally defined as “the state of being equal, especially in status, rights and/or opportunities”. According to the Constitution of the Republic of South Africa Act, 2006 (“Constitution”), equality “includes the full and equal enjoyment of all rights and freedoms”.  In order to promote the achievement of equality, section 9 of the Constitution empowers the legislature to take legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination. Black economic empowerment is one of the means to promote the achievement of equality through advancement of persons or categories of persons disadvantaged by unfair discrimination. The South African government has developed a multi-facet approach to address the this issue, culminating in the enactment of the Broad-Based Black Economic Empowerment Act, 2003 (“B-BBEE Act”), which came into effect on 21 April 2004. The B-BBEE Act will significantly be amended by the Broad-Based Black Economic Amendment Act, 2013 which was gazetted on 27 January 2014 and will come into operation on a date fixed by the President (“Amendment Act”).  The purpose of the B-BBEE Act is to facilitate effective participation in the economy by Black People (i.e. generally Africans, Coloureds and Indians).

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Written by Michael Gwala, partner, Adams & Adams