101-456: Brian Mavuka (Acting CFO) The Public Investment Corporation (PIC) is a South African state-owned entity (SOC) with R2.548 trillion (USD 148 Billion) of assets under management as of 31 March 2022. It is Africa's largest asset manager. Established in 1911, it holds large stakes in several South African companies, and is one of the entities through which the government implements its policy of Broad-Based Black Economic Empowerment . The PIC
202-704: A conflict of interest , particularly in industries regulated by the government. His other interests – including a share trading company, his livestock farms, his property interests, and a sports car company – were placed in a blind trust . Parliament's 2014 Register of Members' Interests reflected over R76-million in company shares held by Ramaphosa (although that figure excluded shares held together with private individuals), as well as his ownership of 30 townhouses in Johannesburg and two apartments in Cape Town . Alongside his duties as Deputy President, Ramaphosa
303-455: A sustainable procurement approach, whereby government procurement is used to advance social policy objectives. So-called "BEE deals" – transactions aiming to increase black ownership of large businesses – have been conducted on a large scale, with BEE transactions concluded between 1994 and 2005 valued at between R150 billion and R285 billion. The government has subscribed to an explicit policy of black economic empowerment since 1994, but BEE
404-715: A Lonmin director towards the Marikana miners' strike in the week ahead of the Marikana massacre . On 19 December 2022, it was announced that the ANC's 55th National Conference had elected Ramaphosa to a second term as president of the ANC. On 14 June 2024, the National Assembly of South Africa elected Ramaphosa to a second term as president of South Africa. Ramaphosa was born in Soweto , Johannesburg , on 17 November 1952, to Venda parents. He
505-528: A broad definition of BEE: It is an integrated and coherent socio-economic process. It is located within the context of the country’s national transformation programme, namely the RDP. It is aimed at redressing the imbalances of the past by seeking to substantially and equitably transfer and confer the ownership, management and control of South Africa’s financial and economic resources to the majority of its citizens. It seeks to ensure broader and meaningful participation in
606-466: A broader and deeper scope than mere black ownership of business. BEE was seen as proceeding along three main lines: in addition to "direct empowerment" (now including managerial as well as ownership control), BEE would also explicitly encompass human resource development ( employment equity and skills development) and "indirect empowerment" (procurement policies, enterprise development, and socioeconomic development ). Codes of Good Practice to complement
707-527: A businessman, taking advantage of the conducive environment provided by the new Black Economic Empowerment (BEE) policy. Among other positions, he was executive chairman of the Shanduka Group , a company he founded, which invested in mineral resources, energy, real estate, banking, insurance, and telecoms ( SEACOM ). By 2014, Shanduka was worth more than R 20-billion, and the Ramaphosa family's Tshivhase Trust
808-508: A condition of those contracts. Finally, in some sectors, the award by government of operating licenses and concessions (such as concessions to export) is conditional on the licensed entity meeting certain BBBEE criteria – for example, in terms of the Mineral and Petroleum Resources Development Act , entities are eligible for mining licenses only if they are 26% black-owned. The generic BBBEE scorecard
909-531: A different, more lenient scorecard. Moreover, Exempted Micro-Enterprises (including businesses with total annual revenue below R10 million and all start-ups in their first year) are automatically given Level 4 BBBEE status. And, at the same time, primarily black-owned entities falling into either of these two categories automatically qualify for Level 1 (100% black-owned) or Level 2 (>51% black-owned) status. The BBBEE Act defines black persons as " Africans , Coloureds and Indians ," who, as of an amendment to
1010-404: A form of tokenism whereby entities improve their BEE status by appointing black directors, managers, employees, or suppliers, who are, in practice, discouraged or inhibited from substantially participating in or benefitting from the enterprise. Several large companies have been investigated for BEE fronting, including Netcare and MTN . The BBBEE Commission has increasingly raised concern about
1111-600: A form of unjust or unconstitutional racial discrimination or " reverse racism " against whites. Some critics argue that BEE deters investment in South Africa. Although BEE is not technically compulsory (unless the business wishes to seek certain contracts or benefits, or to be listed on the JSE ), critics argue that BEE compliance increases the cost of doing business in South Africa, among other reasons because businesses may hire consultants and lawyers to help them navigate
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#17328582096731212-556: A law clerk for a Johannesburg firm of attorneys and continued with his legal studies through correspondence with the University of South Africa (UNISA), where he obtained his Bachelor of Procurationis degree (B. Proc.) in 1981. After completing his legal qualifications and obtaining his degree, Ramaphosa joined the Council of Unions of South Africa (CUSA) as an advisor in the legal department. In 1982, CUSA requested that Ramaphosa start
1313-462: A major cause of political corruption in South Africa , with government contracts improperly awarded, at inflated prices, to politically connected " tenderpreneurs ," sometimes to the detriment of quality and service delivery. These concerns have received increased attention following revelations of state capture during the presidency of Jacob Zuma . There were, for example, allegations that BEE-related corruption had taken place at Bosasa and in
1414-729: A new act passed called the Public Investment Corporation Act of 2004 , where the Public Investment Commission became legalised corporate asset managers. Now a client's specific investment objectives would be expresses in a detailed client investment mandate which are individually negotiated with a client concerned and approved by the Financial Services Board . The current chairman is also the South African Deputy Minister of Finance and
1515-470: A partnership viewed as a strategic attempt by Zuma to "outsmart and punish" Kgalema Motlanthe , who was challenging Zuma for the presidency but whose constituency was similar to Ramaphosa's, given their shared union backgrounds and polished reputations. Ramaphosa elected ANC Deputy President in a resounding victory on 18 December: he received 3,018 votes, while Mathews Phosa received 470 votes and Tokyo Sexwale received 463 votes. After his reelection in
1616-409: A player of considerable weight and scale in the global market as well. At the 2020 AU Summit, Ramaphosa also expressed support for closing the gender gap and ending gender inequality. His government responded to the 2021 South African unrest , the deadliest riots in South Africa since the apartheid era . Ramaphosa was re-elected as President for a second term on 14 June 2024 with the support of
1717-698: A two-day working visit to Vietnam and Singapore, the objectives of which included consolidating trade relations, as well as the opportunity for South Africa to learn from the Singaporean economic model and the role it prescribed for state-owned enterprises . Ramaphosa also continued to serve as Zuma's Special Envoy during the mediation in the South Sudanese conflict, and participated in the Southern African Development Community (SADC) mediation in neighbouring Lesotho . Ramaphosa stood for
1818-709: A union for mineworkers; this new union was launched in the same year and was named the National Union of Mineworkers (NUM). Ramaphosa was arrested in Lebowa , on the charge of organising or planning to take part in a meeting in Namakgale which had been banned by the local magistrate. In August 1982, CUSA resolved to form the National Union of Mineworkers (NUM), and in December Ramaphosa became its first secretary. Ramaphosa
1919-452: Is "very low if not rare," and others argue that the emigration of some skilled workers "creates opportunity" for diversifying the relevant sectors while appointing their replacements. Cyril Ramaphosa Matamela Cyril Ramaphosa (born 17 November 1952) is a South African businessman and politician serving as the 5th and current President of South Africa since 2018. A former anti-apartheid activist and trade union leader, Ramaphosa
2020-572: Is a committed socialist. After the ANC was unbanned in early 1990, Ramaphosa became increasingly close with the organisation. In January 1990, he accompanied released ANC political prisoners to the ANC headquarters in Lusaka, Zambia ; and, later, that year, he served as chairman of the National Reception Committee, which coordinated arrangements for Nelson Mandela 's release from prison, including concomitant celebratory rallies. Ramaphosa
2121-728: Is also responsible for investing in the South African Government Employees Pension Fund (GEPF). The organisation has its origins in 1911, with the passing of the Public Debt Commissioners Act of 1911 , a year after the formation of the Union of South Africa . Known then as the Public Debt Commissioners, it would manage the government's debt, investing the government and South African Railways and Harbours trust funds and by 1924 had taken on
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#17328582096732222-473: Is also the president (leader) of the African National Congress (ANC). Ramaphosa rose to national prominence as secretary general of South Africa's biggest and most powerful trade union, the National Union of Mineworkers . In 1991 , he was elected ANC secretary general under ANC president Nelson Mandela and became the ANC's chief negotiator during the negotiations that ended apartheid . He
2323-572: Is as follows: The most recent versions of the codes identify ownership, skills development, and supplier development as priority elements. There are sector-specific codes defining targets specifically applicable to the agriculture, finance, defence, ICT, transport, property, forestry, construction, tourism, and media, advertising and communication sectors. The legislation's requirements for small businesses are less onerous. For example, Qualifying Small Enterprises (businesses with total annual revenue between R10 million and R50 million) are scored on
2424-507: Is black empowerment when it seems to benefit not the vast majority but an elite that tends to be recycled?" He also warned that, combined with widespread "dehumanising poverty," the system could build popular resentment against the ruling classes and between different sections of society. Pieter Groenewald , leader of opposition party the Freedom Front Plus , has called BEE an acronym for "black elite enrichment"; and John Steenhuisen ,
2525-676: Is that the policy has been co-opted by members of South Africa's political elite, mostly within the governing ANC, for the purpose of self-enrichment. From an early stage of BEE, analysts, extrapolating from the concept of a "patriotic black bourgeoisie," noted the likely contribution of BEE to the growth of a black capitalist class with close links to the ANC. Perhaps most prominently, several politically connected ANC stalwarts – notably Saki Macozoma , Tokyo Sexwale , Cyril Ramaphosa , and Patrice Motsepe – gained substantial wealth and influence in key sectors such as mining and finance through BEE deals. More broadly, BEE has been thought to increase
2626-771: Is the second of the three children to Erdmuth and retired policeman Samuel Ramaphosa. He attended Tshilidzi Primary School and Sekano Ntoane High School in Soweto. In 1971, he matriculated from Mphaphuli High School in Sibasa , Venda where he was elected head of the Student Christian Movement. He subsequently registered to study law at the University of the North (Turfloop) in Limpopo Province in 1972. While at university, Ramaphosa became involved in student politics and joined
2727-484: Is very good at business, but I really wish he would put all his money in a trust and step up for a higher and more senior position". Ramaphosa dismissed the resulting speculation, saying, "You can't read anything [into what Hanekom said]. He was joking". Indeed, Ramaphosa did not confirm his intention to accept the deputy presidential nomination until 16 December, the day before the conference began. However, he received strong backing from incumbent President Jacob Zuma –
2828-685: The 2014 elections , President Zuma appointed Ramaphosa the Deputy President of South Africa on 25 May 2014; Ramaphosa was sworn into office by Chief Justice Mogoeng Mogoeng the following day. After his election as ANC Deputy President, Ramaphosa had begun the process of resigning from various business positions, and in 2014 he concluded the process, as required by the Executive Ethics Code. This entailed his exit from Shanduka, from McDonald's South Africa, from platinum producer Lonmin , and from all other companies which might give rise to
2929-541: The African National Congress (ANC) came to power in 1994 , the new government's priorities included redressing apartheid 's legacy of economic exclusion. Under apartheid, legislation and practice had restricted the access of non-Whites to job opportunities, capital , business and property ownership, and other forms of economic advancement, leaving vast racial inequalities in wealth and income. The new Constitution , finalised in 1996, emphasised protections against unfair discrimination and against disadvantage arising from
3030-527: The African National Congress (ANC). Under his leadership, union membership grew from 6,000 in 1982 to 300,000 in 1992, giving it control of nearly half of the total black workforce in the South African mining industry. As general secretary, he, James Motlatsi (president of NUM), and Elijah Barayi (vice-president of NUM) also led the mineworkers in one of the biggest strikes ever in South African history. In December 1988, Ramaphosa and other prominent members of
3131-504: The African National Congress has pushed for a constitutional amendment allowing the government to confiscate farms owned by White South Africans. He has said that the state having the power to seize property for no compensation will encourage economic growth. In a time when the Rand is at a two-year low, economists have been doubtful over the possibility of this policy being successful. On 14 August 2018, Ramaphosa appointed Dr. Silas Ramaite as
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3232-668: The Coca-Cola Company International Advisory Board and the Unilever Africa Advisory Council. Ramaphosa's various shareholdings made him one of South Africa's richest men. According to the Sunday Times , his estimated net worth of R2.22 billion made him the 13th richest person in South Africa in 2011, and that figure jumped to R3.1 billion in 2012. Both estimates, moreover, excluded his unlisted investments through Shanduka, including
3333-581: The Democratic Alliance and other opposition parties after ANC failed to win an outright majority in the 2024 general elections . Ramaphosa was inaugurated and took his oath of office at the Union Buildings in Pretoria on 19 June 2024. Since Ramaphosa became president he has made land reform and the economy his main priorities, as well as dealing with the outbreak of listeriosis which has claimed
3434-700: The National Assembly (NA) elected Ramaphosa as president of South Africa. He began his first full term as president in May 2019 following the ANC's victory in the 2019 general election . While president, Ramaphosa served as chairperson of the African Union from 2020 to 2021 and led South Africa's response to the COVID-19 pandemic . Ramaphosa's net worth was estimated at over R 6.4 billion ( $ 450 million) as of 2018. He has been criticised for his conduct and involvement in his business interests, including his harsh posture as
3535-558: The Shanduka Group . Ramaphosa returned to politics in December 2012 at the ANC's 53rd National Conference and served as the deputy president of South Africa under President Jacob Zuma from 2014 to 2018. He was also chairman of the National Planning Commission . At the ANC's 54th National Conference on 18 December 2017, he was elected president of the ANC. Two months later, the day after Zuma resigned on 14 February 2018,
3636-673: The South African Students Organisation (SASO) and the Black People's Convention (BPC) . This resulted in him being detained in solitary confinement for eleven months in 1974 under Section 6 of the Terrorism Act, 1967 , for organising pro- Frelimo rallies. In 1976 he was detained again, following the unrest in Soweto, and held for six months at John Vorster Square under the Terrorism Act. After his release, he became
3737-572: The South Sudanese civil war . Ramaphosa also continued to accept nominations to the National Executive Committee of the ANC: at the 50th National Conference in 1997, he received the most votes of any candidate; and at the 51st National Conference in 2002, he received the second-most. Ahead of the 52nd National Conference in 2007, he denied persistent rumours that he intended to join
3838-748: The Soweto community met Soweto's mayor to discuss the rent boycott crisis. In 1985, the NUM broke away from CUSA and helped to establish the Congress of South African Trade Unions (COSATU). When COSATU joined forces with the United Democratic Front (UDF) political movement against the National Party government of P. W. Botha , Ramaphosa took a leading role in what became known as the Mass Democratic Movement (MDM). Ramaphosa has claimed that he
3939-652: The deputy president of the African National Congress and the Premier of Mpumalanga , David Mabuza , as the country's Deputy President . On 8 May 2019, the African National Congress led by President Ramaphosa won 57.50% of the vote in the 2019 South African general election . Ramaphosa was subsequently elected unopposed to his first full term as president by the National Assembly on 22 May 2019. As Ramaphosa had previously been elected as president to fill
4040-464: The 400-member house. Following President Jacob Zuma's resignation in February 2018, Ramaphosa was elected unopposed as President of South Africa by the National Assembly on 15 February 2018. Ramaphosa took his oath of office in the presidential guesthouse, Tuynhuys , by Chief Justice Mogoeng Mogoeng . Markets rallied strongly the day after Ramaphosa assumed the presidency with stocks rising and
4141-480: The ANC in 1997 agreed that: Though such instances may be an exception to the norm, experience in other countries has taught us that, without vigilance, elements of these new capitalist classes can become witting or unwitting tools of monopoly interests, or parasites who thrive on corruption in public office. However, in the overall, the rising black bourgeoisie and middle strata are objectively important motive forces of transformation whose interests coincide with at least
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4242-463: The ANC presidency in 2017, at the expiry of Zuma's term. Although he received the NUM's endorsement as early as September 2016, his campaign did not begin until April 2017. Under the banner #CR17 Siyavuma, Ramaphosa ran on anti-corruption platform, with an emphasis on economic policies conducive to industrialisation and investment. He was endorsed by Cosatu and the SACP; by the provincial leadership of
4343-460: The ANC's Northern Cape , Eastern Cape , and Gauteng provinces; and by politicians including education minister Angie Motshekga , former finance minister Pravin Gordhan , Cosatu president Sdumo Dlamini , and former KwaZulu-Natal Premier Senzo Mchunu . Ramaphosa's primary opponent was Nkosazana Dlamini-Zuma , who had the endorsement of Zuma, her ex-husband. On 18 December 2017, he was elected
4444-727: The Armed Forces Inter-Faith Service at the Mittah Seperepere Convention Centre in Kimberley and made his first public speech as the president of South Africa. On 26 February 2018, Ramaphosa, who had inherited Jacob Zuma 's cabinet, reshuffled cabinet for the first time removing many of the cabinet members who had been controversial through the Zuma era and who had close links to the Gupta family . Ramaphosa also named
4545-491: The BBBEE Act were gazetted in two phases in 2005, setting out standardised criteria for measuring compliance with BBBEE indicators on a "scorecard"; the codes have been amended occasionally since then. At the centre of the implementation of the BBBEE Act is the "scorecard" according to which the compliance of individual businesses is measured. The Codes of Good Practice set out specific criteria (known as "targets") under each of
4646-619: The McDonald's franchise agreement and a coal-mining partnership with Glencore . During a visit to Uganda in 2004, Ramaphosa became interested in the Ankole breed of cattle . Because of inadequate disease control measures in Uganda, the South African government denied him permission to import any of the breed. Instead, Ramaphosa purchased 43 cows from Ugandan president Yoweri Museveni and shipped them to Kenya, where they were artificially inseminated ;
4747-475: The Mining Charter in 2002, both given regulatory status under the Mineral and Petroleum Resources Development Act . The Mining Charter, in particular, embraced principles later codified under BBBEE, identifying seven "pillars" of BEE (only one of which was ownership) and setting out a BEE "scorecard" for businesses. At the 51st National Conference of the ANC in December 2002, President Thabo Mbeki committed
4848-464: The President of the ANC at the party's 54th National Conference , defeating Dlamini-Zuma by 2,440 votes to 2,261. In his first speech as ANC leader, Ramaphosa pledged to stamp out corruption in the party. He subsequently spearheaded what he said was a campaign to "renew" the ANC internally and to restore its integrity and public image. Among other things, this campaign entailed the implementation of
4949-567: The Public Investment Corporation as at 31 March each year are: As a long-term investor, the Public Investment Corporation sets its objective as one to achieve returns higher than the clients have benchmarked and is spread amongst four investments areas: Broad-Based Black Economic Empowerment Black Economic Empowerment ( BEE ) is a policy of the South African government which aims to facilitate broader participation in
5050-585: The absence of organised sources of capital, many of the black participants relied on highly-geared financing structures and special-purpose vehicles . Several BEE deals thus collapsed during the Asian financial crisis of the late-1990s. According to estimates, Black control of business had risen to about 10% of shares on the Johannesburg Stock Exchange by 1998, but, following the financial crisis, fell dramatically to between 1% and 3.8% by 2000. Meanwhile,
5151-469: The act in 2013, are South African citizens by birth or descent or were naturalised as South African citizens prior to 27 April 1994 (or would have been eligible for naturalisation prior to that date). This definition excluded ethnically Chinese citizens from becoming beneficiaries of the legislation. The government argued that, although Chinese people had been subject to discrimination under apartheid, that discrimination had been applied inconsistently and
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#17328582096735252-458: The act, promulgated in 2001, outlined a point system by which preference is allocated in the evaluation of public tenders – in addition to the competitiveness of a bid's price, "points" were given for the bidder's contribution to black economic empowerment. Shortly after the passage of the act, the first industry-specific BEE charters were published – the Petroleum and Liquid Fuels Charter in 2000 and
5353-471: The apartheid era with little capital and limited access to the same – may, by increasing the indebtedness of BEE beneficiaries, "encourage a willingness to cut legal corners and lapse into criminality." Detractors argue, therefore, not only that BEE beneficiaries are a small elite, but also that they tend to be a politically connected elite, comprising especially the friends and family of government and ANC officials. Critics also argue that BEE has thus become
5454-668: The appointment of commissioners and the finance minister as its chairman. With the first free election in South Africa in 1994 , the Public Investment Commissioners announced the formation of the Isibaya Fund in 1995. This saw a portion of the money managed diverted to the new fund to invest in Socially Responsible Investments to target economic growth transformations in population groups disadvantaged during apartheid . The next change came in 2004 with
5555-484: The central concerns leading to the reform of BEE as a "broad-based" programme in the early 2000s – remains one of the major criticisms levied against the policy. At the advent of the policy, and especially during the Mbeki presidency, the ANC was explicitly committed to promoting the development of a "patriotic black bourgeoisie " whose rise could initiate broader transformation in the economy. The 50th National Conference of
5656-554: The chairperson of its Constitutional Assembly on 24 May 1994, a central role in Mandela's Government of National Unity . He was also re-elected, unopposed, as ANC Secretary-General at the party's 49th National Conference in December 1994. However, in 1996, he resigned from ANC office and from Parliament and announced his retreat from politics, reportedly because he was disappointed that Thabo Mbeki had been anointed Mandela's successor. After he resigned from politics, Ramaphosa became
5757-577: The complexity of the codes and other regulations. In 2018, for example, as a condition for increasing investment in South Africa, the European Union requested a relaxation of BEE ownership rules, calling the targets unfairly onerous. Like the rest of South Africa's affirmative action policies, BEE – and the fact that all white citizens "feel marginalised" by it – has been linked to a brain drain of qualified workers from South Africa. However, one study notes that corporate brain drain from South Africa
5858-497: The controversial Vrede Dairy Project . At the Zondo Commission , former Bosasa executive Angelo Agrizzi implicated BEE verification agency Empowerdex in corruption, and it was later confirmed that Gupta -owned companies, implicated in substantial corruption, had secured Eskom contracts using fraudulent BEE certificates. Minister of Finance Enoch Godongwana said in 2022 that increased corruption in government procurement
5959-474: The earlier ANC RDP policy framework, on which the government policy was based. The ANC document viewed BEE initiatives as a means to "deracialise business ownership and control." As suggested by this phrase, early stages of BEE focused on promoting black ownership of large businesses. So-called BEE transactions aimed to diversify the demographics of company shareholders. However, White-owned companies entered into these transactions only voluntarily. Moreover, in
6060-463: The economy by black people to achieve sustainable development and prosperity. The Commission also proposed the passage of focused BEE legislation and the adoption of an integrated national strategy on BEE, comprising a set of simplified and coordinated guidelines and regulations applicable across the economy, to be implemented by an oversight body reporting to the cabinet. On some views, the Commission
6161-551: The economy by black people. A form of affirmative action , it is intended especially to redress the inequalities created by apartheid . The policy provides incentives – especially preferential treatment in government procurement processes – to businesses which contribute to black economic empowerment according to several measurable criteria, including through partial or majority black ownership, hiring black employees, and contracting with black-owned suppliers. The preferential procurement aspect of BEE has been viewed as paradigmatic of
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#17328582096736262-512: The economy. The notion of a BEE elite adds to this the further accusation that BEE ownership transactions themselves disproportionately involve one small group of black businessmen, with insufficient opportunities afforded to the black population at large. Anthea Jeffrey of the Institute of Race Relations has claimed that the group of beneficiaries amounts to about 15% of the black population. The shift to broad-based BEE has led to an increase in
6363-592: The embryos were then removed and shipped to South Africa, to be transferred to quarantined cows. As of August 2017, Ramaphosa had 100 Ankole breeding cows at his Ntaba Nyoni farm in Mpumalanga . That year, he co-wrote a book about the breed, Cattle of the Ages: Stories, and Portraits of the Ankole Cattle of Southern Africa . His resignation from politics notwithstanding, Ramaphosa occasionally accepted positions in
6464-449: The extent of the practice. In 2021, Commissioner Zodwa Ntuli said that fronting was so widespread that improved measured performance against BEE objectives might not correlate with actual improvement in the economic situation of black people. She also called for a more stringent government response to those found guilty of fronting, which is punishable by fines, blacklisting, and up to ten years' imprisonment. A notable criticism of BBBEE
6565-526: The government to drawing up a "Transformation Charter" involving a consolidated and clarified strategy on BEE. The BBBEE Act passed in 2003, under the custodianship of the Department of Trade and Industry , and commenced in 2004. The Act's stated objectives were to facilitate broad-based black economic empowerment by: During this period, under President Mbeki, the government's approach to BEE became "increasingly focused and assertive," and it became unambiguously committed to maximalist or broad-based BEE, with
6666-568: The immediate interests of the majority. They are, in this sense and in this phase, part of the motive forces of fundamental change. However, critics contend that, over two decades later, the beneficiaries of BEE, and of most BEE transactions, still comprise only a very small elite of South African society, with the vast majority of black South Africans receiving few benefits from the policy, and indeed with little progress in reducing overall poverty and inequality levels in South Africa in general. Archbishop Desmond Tutu expressed this view, asking, "What
6767-437: The importance or perceived importance of political connections to gaining state contracts and other business incentives, with the extent of inter-linkages between the state and business providing "the conditions for the possible emergence of a corrupt and nepotistic governance system." Moreover, some have suggested that the highly leveraged arrangements used to finance many BEE endeavours – necessary because most black people left
6868-439: The leader of the opposition Democratic Alliance , has argued that BEE encourages the development of oligarchy at the expense of economic equality. A common accusation is that, despite the shift to BBBEE, BEE remains primarily geared towards ownership transactions, increasing black shareholding and directorships – and the wealth of their holders – without necessarily increasing the substantive control of black South Africans over
6969-401: The lives of over 100 since the start of 2018. In February 2018, South Africa's parliament voted 241–83 to begin amending the "property clause" in the constitution to allow the expropriation of land without compensation. On 19 March 2018, Ramaphosa suspended Tom Moyane as the Commissioner of the South African Revenue Service after Moyane had refused to step down. Under his leadership,
7070-451: The matter between Zuma's administration and representatives of labour and business. The proposal was approved by cabinet in November 2017. In July 2014, Ramaphosa called for unity in the country after Julius Malema argued that the Afrikaans portion of the national anthem should be scrapped. Ramaphosa said, "We are about building a nation and we must extend a hand of friendship, a hand of continued reconciliation to those who feel that
7171-427: The national anthem does not represent them any longer, and it can happen on both sides". Late in Zuma's term, Ramaphosa also began to address publicly the widespread allegations of corruption in Zuma's administration. In 2018, Ramaphosa, in Zuma's stead, led South Africa's delegation to the World Economic Forum in Davos , to promote investment and business in South Africa. His other official trips abroad included
7272-476: The new step-aside rule to suspend ANC leaders accused of corruption. This, in turn, led to a confrontation with ANC Secretary-General Ace Magashule , who, upon his suspension from the party in May 2021, attempted to retaliate by suspending Ramaphosa, accusing him of irregularities in the financing of the CR2017 campaign. Magashule's attempt had no legal force because of his own suspension. In December 2022, Ramaphosa
7373-430: The number of BEE deals involving large black-owned consortia , which some commentators have suggested may have increased the scope of beneficiaries under those deals. However, with little detailed public information available about the composition of the relevant consortia, this claim has been difficult to verify. On other, non-ownership metrics, there has been positive transformation since 1994, but critics argue that
7474-598: The other; however, he said that he could not be an effective mediator without "the trust and confidence of all parties" and that he did not wish to become an obstacle to the negotiations. He therefore withdrew from the talks on 4 February. However, he returned to a peacemaking role in 2014, when – in his capacity as Deputy Chairperson of the National Planning Commission – he served as the South African President's Special Envoy to South Sudan during
7575-556: The pace of change has been inadequate. The Institute of Race Relations found that the number of black South Africans employed as managers had increased by 176.3% between 2001 and 2017 (compared to 32.1% population growth in that group over the same period). Yet in 2021, the Commission for Employment Equity found that white people remained dramatically over-represented in the top levels of the private sector: they filled 67.8% of top management positions, 58% of senior management positions, and 43.2% of all professionally qualified positions. As of
7676-465: The promotion of black empowerment in areas other than ownership was pursued piecemeal, especially through a series of laws including the 1998 Skills Development Act and 1998 Employment Equity Act. Amid dissatisfaction with the progress of existing initiatives, in May 1998 the Black Business Council appointed future President Cyril Ramaphosa to chair a BEE Commission. The Commission proposed
7777-504: The provincial administrators funds as well. By the mid-1920s it would manage the granting of loans to local governments in the country. The Pension funds managed by the government would allow the government to borrow against those funds. In 1984, a new act, the Public Investment Commissioners Act No.45 of 1984 , moved its focus from debt to investment management, investing funds on behalf of government organisations,
7878-736: The public eye, both abroad and in South Africa. He became the first Vice Chairman of the Commonwealth Business Council , and, in 1998, the Chairman of South Africa's BEE Commission. In 2000, he was appointed to the Independent International Commission on Decommissioning as an arms inspector, responsible for supervising the decommissioning of Irish Republican Army armaments in Northern Ireland . And, in April 2010, he
7979-697: The purposes of the BBBEE Act, as well as the Employment Equity Act. Some criticisms of BEE – particularly those about its economic effects – are difficult to disentangle from broader criticisms of South Africa's broader employment equity or affirmative action programme. This is because BEE is closely tied with that broader programme, implying affirmative action both explicitly and insofar as it provides private-sector entities with strong incentives to pursue affirmative action internally. General criticisms of affirmative action are therefore also relevant. The "narrow base of empowerment" effected by BEE – one of
8080-456: The race to replace Mbeki as ANC president; that year, he ranked 30th on the list of most popular NEC candidates. Ramaphosa made his return to political leadership in 2012, ahead of the ANC's 53rd National Conference , when he received nominations to become ANC Deputy President. On 20 May 2012, Derek Hanekom , an ANC MP, publicly encouraged Ramaphosa to run for the ANC presidency, saying, "We need leaders of comrade Cyril's calibre. I know Cyril
8181-527: The rand reaching its firmest since early 2015. Government bonds also increased in strength. On 16 February 2018, Ramaphosa gave his first State of the Nation Address as the president of South Africa , the first time in a democratic South Africa where the president delivered his State of the Nation Address without a deputy president. Ramaphosa emphasised the need to grow the economy of South Africa , increase tourism and youth employment, as well as reduce
8282-422: The same time, in business between private entities, it is often attractive for entities to contract with entities which themselves have high BBBEE ratings, because this may boost their own BBBEE score (in the preferential procurement category of the scorecard). Entities which have won state contracts (or mining licenses) are also often required to meet certain BBBEE obligations in selecting their private suppliers, as
8383-460: The same. This was complemented by a 1997 Green Paper on Public Procurement Reform, which called for affirmative action measures in government procurement processes. The central socioeconomic policy framework of Nelson Mandela 's government was the Reconstruction and Development Programme (RDP), which did not specifically refer to "black economic empowerment". However, the term was used in
8484-419: The second quarter of 2021, the unemployment rate for white South Africans, at 8.6%, remained significantly lower than that for blacks (38.2%), coloureds (28.5%), and Indians and Asians (19.5%). The government defines "BEE fronting" as occurring whenever entities deliberately misrepresent facts about their BEE compliance. However, the phrase is most commonly used in reference to so-called "window-dressing,"
8585-416: The seven elements or pillars of BBBEE, which correspond to the seven categories on the scorecard. Each entity is measured against the scorecard to determine its BBBEE score (out of 105), which in turn is used to determine its BBBEE level. The level is published in a BBBEE certificate issued to the entity and valid for one year. BBBEE certificates are essential to securing certain incentives or contracts with
8686-559: The size of the Cabinet. In this speech, Ramaphosa also focused on the importance of keeping Mandela's legacy alive. Ramaphosa's speech was met with mostly positive reviews from opposition parties saying that his speech was positive and that it would bring about change, but that they would hold him accountable. On 17 February 2018, Ramaphosa, as commander in chief of the South African National Defence Force , attended
8787-522: The state or with other private entities. Bids by private entities for government procurement contracts are typically evaluated in terms of a 90/10 or 80/20 point system: the competitiveness of the price of the bid is evaluated 90 or 80 points, while the remaining 10 or 20 points are awarded for the bidder's BBBEE rating. A BBBEE rating can therefore determine the outcome of closely contested bids. Some state entities also set out minimum BBBEE criteria which entities must meet in order to qualify to submit bids. At
8888-495: The vacancy left by the resignation of his predecessor, he is constitutionally eligible to serve two full terms. At the 2020 AU summit, Ramaphosa expressed support for the African Continental Free Trade Area and described it as a major driver for reigniting industrialization and paving the way for Africa's integration into the global market. Ramaphosa also stated that the free trade agreement will make Africa
8989-758: Was appointed by President Jacob Zuma to the National Planning Commission , where he served as deputy chairperson to Minister in the Presidency Trevor Manuel . In the 2007–2008 Kenyan crisis , which followed the disputed re-election of President Mwai Kibaki in December 2007, Ramaphosa was unanimously chosen by Kofi Annan 's mediation team to be the chief mediator in charge of long-term talks. However, Kibaki's government protested Ramaphosa's involvement, saying that he had business links with Kibaki's opponent Raila Odinga . According to Ramaphosa, Odinga had visited him in 2007, but he did not have any "special interest" that would lead him to favour one side or
9090-503: Was appointed by the Minister of Finance . The chairman is a government member mainly due to the high percentage of government pension funds under management by the Public Investment Corporation. All other directors are also appointed by Minister of Finance. The following figures shows the share of the total assets under management by PIC from each public institution in South Africa as of 31 March 2022: The total assets held under management by
9191-553: Was elected Secretary-General of the ANC at the party's 48th National Conference in Durban in July 1991, and subsequently became head of the ANC's delegation to the negotiations that ended apartheid . He was also a visiting professor of law at Stanford University in October 1991. Following the first fully democratic elections in 1994, he became a Member of Parliament (MP) and was elected
9292-477: Was elected chairperson of the Constitutional Assembly after the country's first fully democratic elections in 1994 and some observers believed that he was Mandela's preferred successor. However, Ramaphosa resigned from politics in 1996 and became well known as a businessman, including as an owner of McDonald's South Africa, chair of the board for MTN , member of the board for Lonmin , and founder of
9393-412: Was influential in bolstering support for the broader approach ultimately taken by the government to BEE. This is what sociologist Roger Southall called the "maximalist" (now the "broad-based") approach to BEE, envisaging a more dramatic transformation of the South African economy, with redistributive objectives going beyond black ownership. According to Southall, a major force behind this shift in strategy
9494-457: Was its majority shareholder . Ramaphosa was also a chairman of Bidvest , MTN , and from March 2007, Mondi , a leading international paper and packaging group. His other non-executive directorships included Macsteel Holdings, Alexander Forbes , SABMiller , Lonmin , Anglo American , and Standard Bank . In 2011, Ramaphosa paid for a 20-year master franchise agreement to run 145 McDonald's restaurants in South Africa. He also belonged to
9595-659: Was less clearcut than that experienced by other non-white groups. For example, although Chinese people were treated as coloured under some legislation, from 1984 they were exempt from the discriminatory provisions of the Group Areas Act . In 2008, arbitrating a legal challenge by the Chinese Association of South Africa, the Pretoria High Court ruled that the South African Chinese community were "black" for
9696-493: Was made Leader of Government Business in the National Assembly in terms of section 91(4) of the Constitution , a role which involved coordinating between Parliament and Zuma's cabinet . On 3 June, Zuma also appointed him the Chairman of the National Planning Commission, with Jeff Radebe as his deputy. In addition, Ramaphosa was responsible for developing a proposal to implement a national minimum wage , leading consultation on
9797-420: Was one of the most significant challenges facing BEE. Critics have questioned the appropriateness and fairness of the policy's use of racial classifications , themselves inherited from the apartheid era. This broad family of criticisms encompasses a range of views, including that using race markers further entrenches their power; that race is a suboptimal proxy for economic disadvantage; and that BEE constitutes
9898-701: Was re-elected leader of the ANC, running against Zweli Mkhize, for a second five-year term. The next parliamentary general election which took place in 2024 saw the ANC lose its parliamentary majority. Despite this, Ramaphosa would secure a third term as president in June 2024 after the ANC secured a coalition with the Democratic Alliance (DA), the Inkatha Freedom Party (IFP) and the Patriotic Alliance (PA) parties. Ramaphosa received 283 votes to Economic Freedom Fighters (EFF) leader Julius Malema ’s 44 in
9999-625: Was relaunched as the more comprehensive, and less ownership-focused, Broad-Based Black Economic Empowerment ( BBBEE ) programme around the time of the passage of the BBBEE legislation in 2003. However, although earlier initiatives were governed by different legislation and sets of arrangements, the underlying principles and policy are very similar, and BBBEE is often still referred to as "BEE" in common parlance. In June 2021, President Cyril Ramaphosa announced that South Africa's BEE strategy and legislation would be reviewed, especially to ensure that they are not exploited for corrupt purposes. When
10100-711: Was the conference organiser in the preparations leading to the formation of the Congress of the South African Trade Union (COSATU). He delivered a keynote address at Cosatu's launch rally in Durban in December 1985. In March 1986, he was part of COSATU's delegation which met the African National Congress in Lusaka, Zambia. Ramaphosa was elected as the first general secretary of the union, a position he held until he resigned in June 1991, following his election as secretary-general of
10201-522: Was the growing popular perception that BEE had thus far worked to benefit only a tiny black elite, a criticism prominently voiced by the influential Congress of South African Trade Unions . The stage for the expanded BBBEE strategy was set by the Preferential Procurement Act of 2000, which sanctioned preferential treatment for historically disadvantaged groups in the distribution of state procurement contracts. The regulations accompanying
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