Presidential Office | March 6, 2025
The Black Management Forum (BMF) has condemned the World Bank's recent statement that South Africa should roll back wider Black Economic Empowerment (BBBEE) labor policies to make South Africa more attractive to foreign investors.
The World Bank argues that economic empowerment for black people is a “overly regulatory burden” and that policies must be continued for South Africa's economy to grow. The story suggests that B-BBEE is a stumbling block in economic growth, forgetting the history of South Africa's colonialism and apartheid, disenfranchising the black population, bringing huge contradictions in income, employment and general welfare, making South Africa one of the world's most unequal countries.
The World Bank statements and comments by global business leaders such as Elon Musk, as well as the recent withdrawal of US aid from South Africa, all point to the significant shortage of public education regarding what B-Bbee is and its need in the South African context.
The BMF recommends that the Presidential B-BBEE Committee utilize this role to fulfill this education vacuum, thus not further hindering the painstaking progress taken to bring about social transformation in our country.
Black people in South Africa have an overwhelming majority population, accounting for 81.4%. However, black South Africans are also marginalized from economic participation. The unemployment rate is around 32%, disproportionately affecting black individuals. Furthermore, about 28 million people rely on welfare due to lack of access to means of access to economic opportunities.
The B-BBEE policy provides direct support, grants, tax rebates, employment and training to Black individuals and businesses, and helps to mitigate structures and systems that are exclusive and hinder economic participation.
Importantly, the World Bank fails to recognize that economic empowerment among black people is not about racial preferences. It's about economics. If the economy does not include 81.4% of the population, the economy will not grow. This is because South Africa follows this neoliberal policy of marginalising this majority. The rise of the KASI economy, Stokvels, and other informal economic activity Ahost arose from discrimination of customary economic activity against global free trade.
Today, these activities are valued at billions of rands. Formal economies, determined by international financial institutions such as the World Bank, have failed the majority of blacks, and through their own ingenuity, they have created a parallel structure of economic prosperity. The informal provided affordable goods, services, jobs, and enabled black businesses to thrive and grow their black communities. To expand South Africa's stagnant economy, South Africa must harness its unique strengths, such as the Kashi economy and the rapidly growing black class, and will not return to B-Bbee and abandon it.
Only by proudly embracing South Africa's inclusive, transformative economy can we escape the economic turmoil we are in. Therefore, it strongly encourages governments to continue their economic agenda for Black people.
It is little worth the flexibility to attract foreign investment in South Africa. Instead, the country is being questioned about the role of foreign investment. Globalization is bypassing nations, and internationalism creates global civil society, global governance and global justice.
Our nation serves as part of a global community made up of government and extra transnational stakeholders in the multi-layered, global political phase of supranational governance. The concept of good governance, determined by international organizations, is often at odds with domestic law, traditions and customs, contributing to foreign interests rather than domestic.
The World Bank has expanded the scope of the nation, which serves as the “government of government,” into the economic, social and political spheres. Economically, the World Bank argues that there are comparative benefits in providing government analysis, evaluation, advice and finances to reform the economy.
Determine the choice of macroeconomic policy, such as resource use, budgeting, policy formulation, poverty reduction strategies, and participatory strategies. It monitors economic reforms, public spending and sector reforms in over 100 countries, and changes rules, regulations and investment strategies.
By continuing to allow the World Bank to reform our rules, reform our regulations and access public information, the banks will allow South Africa to use it to serve the agenda of foreign capital at the expense of domestic prosperity.
Until we make great strides to distance ourselves from foreign demands, our domestic economy will continue to be exploited and our national agenda to end poverty, unemployment and inequality will never be achieved. We need to skillfully navigate global trade to maintain our priorities as our main focus.
The market victory ended with the financial crisis of 2008, but the neoliberal agenda continues to expand into social areas of life, halting public spaces. South Africa is deeply involved in the global economic system that determines the response of a nation with little room to pursue alternatives.
“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”
