How does business feel about the new Broad- Based Black Economic Empowerment Amendment Act signed into law by president Jacob Zuma last month? And will it affect much-needed foreign direct investment (FDI)? Business groups weighed in with diverse views: Chief executive of the National Employers’ Association of South Africa, Gerhard Papenfus, was quoted widely in the business press as saying that the new legislation, together with the Employment Equity Act, would make South Africa the most racially defined nation in the world. He reportedly said: “The legislation makes it completely unattractive for white entrepreneurs to start up a business in South Africa. The same applies to foreign investors.” In an interview with BDlive, Neren Rau, the CEO of the South African Chamber of Commerce and Industry (Sacci), said foreign investors did not have to abide by the regulations, and that the “punishment” comes where companies “lie and front”. Business Unity South Africa (Busa) has generally welcomed and supported the act, with the group’s executive director for transformation and social policy, Vanessa Phala, noting: “We believe that dealing decisively with fronting will go a long way in speeding up the implementation of transformation in the country.” CAPTIONS 1,2,3 Gerhard Papenfus, Neren Rau and Vanessa Phala
