BBBEE and Economic Performance
- Frans Minnaar
- Aug 21
- 11 min read
In 1994, the political transition in South Africa was concluded. This implied the start of race-based economic transformation, including so-called Broad-based Black Economic Empowerment.
The Constitution of South Africa, 1996, stipulates as follows regarding public procurement:
"Section 217. Procurement
When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.
Subsection (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for ¬
a. categories of preference in the allocation of contracts; and
b. the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.3. National legislation must prescribe a framework within which the policy referred to in subsection (2) must be implemented."
