SA needs to rethink BEE strategy

South Africa needs to
rethink its black economic
empowerment strategy –
especially in the mining sector
– as rigid, restrictive policies
will impact the economy
negatively.
Mxolisi Mgojo, CEO of
Exxaro, told delegates at the
annual Investing in Africa
Mining Indaba in Cape Town
recently that a different
approach was called for – one
that was less prescriptive.
“The conversation needs to
move away from restrictive
ideas about fixed black equity
in white companies. After all,
are we really saying that we
want a country where demand
is 30% or 40% black ownership
regardless of the size of the
company?”
He said taking into account
the lessons of the past 24 years
there was no denying that
South Africa needed to remain
ambitious in its transformation
efforts but at the same time
there was also a need to
be realistic and focused on
solutions that were achievable.