The BEE Act was passed into law in 2003 and aimed to address the inequality suffered by black South Africans during the apartheid era.
The act requires that South African businesses meet certain targets (in terms of ownership, management, and employment equity and skills development, and preferential procurement) in order to be considered for government tenders and other opportunities.
BEE legislation was brought in due to the inequality suffered by black South Africans during apartheid. The term BEE is short for “black economic empowerment”, and refers to a set of laws that require companies in South Africa to meet certain targets (in terms of ownership, management, employment equity and skills development, and preferential procurement) in order to be considered for government tenders and other opportunities. Companies that achieve the prescribed benchmarks are rewarded by being given preferential treatment in doing business with the government; those who don’t comply with BEE run the risk of being unable to bid for state contracts or similar opportunities.
