'Black Africans' only move on big BEE deals

In what the Sunday Times describes as ‘an audacious move to shake up South Africa’s empowerment landscape in KwaZulu-Natal’, a proposal to block Indians and coloureds from state contracts of more than R50m is on the table. The report says the bid to reshape BEE policies to benefit ‘black Africans’ is being spearheaded by KZN Economic Development MEC Sihle Zikalala. The proposal was sent to National Treasury Director-General Dondo Mogajane in August. It is being seen as a possible template for sweeping change in empowerment legislation to incorporate the objectives of ‘radical economic transformation’ being touted by President Jacob Zuma. The report notes KZN’s attempt to redefine ‘black’ is at odds with legislation and practice, which regards Indians, coloured people and Chinese who were in SA before 1994 as ‘black’, and eligible to benefit from laws and initiatives on BEE. Treasury said the request had been declined. ‘The Minister’s view is that what KZN was asking for would be unconstitutional and would present legal constitutional problems,’ spokesperson Mayihlome Tshwete is quoted as saying. Zikalala, however, said the provincial ANC would advance its view at the party’s national elective conference in December. ‘We want to ensure that in a procurement, BEE is increased in favour of the Africans and blacks in general. This thing of defining blacks and Africans in general terms is also a problem . . . We must know who is an African and blacks in general,’ he reportedly said.

Full Sunday Times report (subscription needed)