EU sees black empowerment as obstacle to investment

Die Vryburger

EU sees black empowerment as obstacle to investment
EU sees black empowerment as obstacle to investment - Image - Die Vryburger

The European Union’s Chamber of Commerce and Industry in South Africa said several aspects of empowerment identified unrealistic requirements, which make it one of the significant challenges for European investors in South Africa.

According to the chamber’s national executive director, Stefan Sakoschek, one of the major obstacles is the requirement of state-owned enterprises where tenders will only be considered for companies with 51% black ownership. He says it makes it tough for investors to continue doing business in South Africa, or to expand their existing interests.

According to Sakoschek, the chamber continued to support economic transformation in South Africa through empowerment, but this process should be scaled to ensure the long-term sustainability of investments. The chamber has asked the government to conduct an “urgent meeting” on the matter.

In commenting on this Adv. Anton Alberts of FF+ said it seems that black economic empowerment (BEE) is increasingly seen as an obstacle for foreign investors in South Africa. The result is that economic growth is curbed meaning BEE is rather to the detriment of the average black person in South Africa. So far, BEE benefited just a small group of blacks.

Read the original article in Afrikaans on Die Vryburger

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