Where do South Africans stand on BEE?

In the telephone study conducted by RS, leading marketing insights company, amongst a sample of 500 SA adults in metropolitan areas, attitudes and perceptions of South Africans towards BEE issues were probed.

Some sharp divisions

If one defines Government's BEE promise to be the promotion of economic transformation for all previously disadvantaged individuals, the findings reveal that one out of two people felt that not all people are benefiting from this BEE promise, but only a select few.

This tends to tie in with further findings from the survey which reveal that 70% of the sample felt that BEE had enriched only a select few. This was highest for whites at 77%, with all the other population groups coming in the mid- to high-sixties. Males were more negative at 77%, compared to females at 63%.

Should we be doing it?

Two-thirds of the sample (69%) felt that BEE is necessary to address the wrongs of the past, this rising to 70% amongst blacks, and to 75% amongst coloureds and Indians; 64% of whites agreed with this.

Encouragingly, 65% of people interviewed felt that BEE has uplifted the standard of living for many black people. Coloureds at 75% were the most likely to agree with this, with blacks and Indians next in the mid-sixties. Only 58% of whites agreed. There were some noticeable differences by city: only 58% of those in Gauteng agreed that the standard of living of many black people had been improved, with Durban and Cape Town coming in the mid-seventies. Young people were also more positive here, with 81% of those aged 18-24 agreeing.

The challenges

Despite the need for BEE and its undoubted positives, the survey indicated that South Africa is divided on certain issues relating to BEE.

Whilst 44% felt that BEE is stifling the country's growth, 48% felt that this was not the case

Whilst 43% felt that BEE creates an environment which fosters corruption (especially whites at 52%), a further 48% disagreed with this statement

So, it would appear that South Africa is divided on whether BEE stifles economic growth and creates an environment for corruption

Divided

In essence, South Africa is divided when it comes to blaming BEE for creating an environment for corruption and stifling economic growth.

However, on a constructive note, Government should take heed of the sentiment that their BEE promises have not necessarily been seen to produce results for all, but only for a select few. South Africa agrees that BEE is necessary for upliftment of standards and correcting the wrongs of the past, but there is a strong feeling that it has benefited only a few so far, and that the benefits of BEE have largely flowed to a few individuals rather than being more wide-spread. This will come as no surprise given the large number of BEE deals that have recently been announced.

Frequent business debates have centred around the need for Government to recognise initiatives which also concentrate on skills transfer, management participation and so on, rather than focusing on equity transactions which do not tend to benefit the broad base.