Broad-based black economic empowerment (BBBEE) is the biggest concern for American companies operating in South Africa, particularly when it comes to ownership, according to Carol O’Brien, executive director at the American Chamber of Commerce (AmCham).
“American companies don’t sell equity in their companies as a rule,” said O’Brien. “Ownership has now become a mandatory requirement of BEE so they are unable to comply with this and the concomitant loss of points on the scorecard.
No real alternative
“Equity equivalents is an option, but it is extremely expensive and in the many years since it was made available, only about seven equity equivalent programmes have been approved.” O’Brien also said there was a shortage of skilled people within the country in general, but more so in highly technological fields. Complying with employment equity made finding talent “doubly difficult”…
White people now finally excluded from the South African job market
South Africa Today – South Africa News
