Abstract
M.Comm.
Broad Based Black Economic Empowerment (BBBEE) remains a key issue for the South African government, especially considering the inequalities generated by apartheid. This paper highlights the efforts made by the South African government to redress past injustices through the application of BBBEE principles. BBBEE is compared to affirmative action programmes implemented in other countries to redress past injustices, and background is provided on the origins and objectives of BBBEE, the policy instruments to achieve BBBEE, and the measurement of BBBEE.
Insight is provided into the methods such as vendor financing, equity financing, debt financing and unfunded structures used by financial institutions to structure and finance BBBEE transactions, and a critical analysis is conducted on the shortcomings of these methods and whether BBBEE principles are being applied in the structuring and financing of transactions at a local bank. It was decided that a quantitative analysis would be employed through the use of a structured questionnaire which used specific closed ended questions in the form of the Likert scale. The topic is concluded with a discussion surrounding the recommendations to ensure success with future BBBEE transactions.