Nail in the coffin for BEE in South Africa

• The creation of the Transformation Fund marks the end of the Black Economic Empowerment (BEE) as South Africans know it, as companies will be able to pay directly for BEE points rather than adhere to complex regulations.
• The Transformation Fund will be capitalized through businesses' enterprise and supplier development contributions, and will allocate capital to black-owned businesses, with contributions to the fund set to give businesses more points than other activities.
• The proposal has sparked debate, with Efficient Group chief economist Dawie Roodt calling for the eventual scrapping of BEE requirements, and the ANC opening up the policy framework for public debate to tackle corruption and cronyism.