A short BEE strategy will save you a lot of money in short and long term

There were a number of stories about BEE’s role in business and society over the last week.  The topic has become so contentious that our president and his allies grab ever opportunity to speak about the importance of transformation.  Our president recently wrote the country a letter and said

The narrative that economic growth and transformation cannot coexist is false. We must dispense with the incorrect choice that we are urged to make between growth and transformation. Transformation is vital if growth is to be meaningful, inclusive and sustainable. Growth is essential if we are to effectively transform our economy. Our task is to ensure that we pursue both growth and transformation, in concert, with more vigour and to greater effect.”

Ownershield is completely behind this sentiment.  Transformation ensures that more people are educated in skills that the country needs.  The same people will either be employed or strike out on their own.  The economy can only benefit from this.

However Cyril’s concept of transformation is still rooted in the idea that legislation will force this process to happen.  History has shown that the stick approach has failed.  South Africa is in a worse position because of the state’s micro-management of the economy.

We can only conclude that Cyril and his cabinet are only too aware of this fact and hence they continue making a lot of noise about the importance of transformation.

On the other side of the spectrum there are more rational suggestions about the state of the economy and where transformation needs to fit in with the future of its growth, think about the never-ending debate around Musk and Starlink.  

As pleasing as these counter-voices are, they don’t solve your immediate BEE compliance issues.

Setting up five year strategies are not the best idea as BEE could become obsolete in three years’ time.  A short term approach seems to be the best idea at the moment.  Structures that comply with the BEE codes that anticipate BEE’s end are more expedient.

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