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BL Premium reports that a report shining the spotlight on the cost of BBBEE policy to the struggling SA economy has dismissed the policy as a substantial economic burden, which has resulted in reduced GDP growth and huge job losses.
Titled “The costs of BBBEE Compliance”, the report was released on Thursday by the Solidarity Research Institute (SRI), in collaboration with the Free Market Foundation. Its release comes amid fierce debate over the government’s BEE policies. “This study estimates annual compliance costs with BBBEE at R149bn-R290bn, equivalent to 2%-4% of SA’s GDP of R7.3-trillion … These costs, particularly in high-intensity sectors like mining and finance, have imposed a substantial economic burden, potentially reducing GDP growth by 1.5%-3% annually and contributing to 96,000-192,000 fewer jobs per year,” the report indicates. The diminished GDP growth is said to have resulted in the loss of 3.8-million jobs, leaving the country far behind other economies of similar scale. “This results in reduced quality of life for the overall majority of the population to the benefit of a small politically connected elite,” according to the report. However, Black Business Council president Elias Monage said the report was not backed by “empirical evidence, in any form or shape”. In his view, the economy has not been performing for many years “and that has nothing to do with BEE”.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
- Lees ook, Swart ekonomiese bemagtiging doodskoot vir ekonomie, werksgeleenthede, by Maroela Media
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