BEE works, and it’s starting t

BEE works, and it’s starting to show some pretty neat results

For the first time ever, someone has put a pricetag on Black Economic Empowerment initiatives and, well… it’s actually looking great.

BEE works, and it’s starting t

You hear it every day; BEE is a waste of time, the money’s not going to the right people, it’s fattening up the top dogs et al; well, we’ve finally got some good news.

Fin24 reports that a six month long research project by Intellidex financial research house has revealed that the the combined total of the JSE’s top 100 BEE deals amount to around R317 billion. That’s a sh*tload of cash folks and it’s being spent really well.

So, why are we only seeing these results now and where was this all along, well, turns out most of these projects are long term BEE investments into communities, deals that need to mature in order for those they aim to benefit to… well, benefit.

Now look, there’s no denying that, since its inception, Black Economic Empowerment — or Broader Based Black Economic Empowerment or whatever the beaurocrats are calling it these days – hasn’t always worked as well as it should have, for those most in need; that said, the times they are a changing.

Have a look at some of the numbers, they’re pretty impressive.

  • 34% of the total value has already matured and can be used immediately by its beneficiaries.
  • 64% is still live, but will mature within the next five years and become available to its beneficiaries.
  • 26% of the total comes from staff schemes
  • 22% of it benefits broad based community schemes
  • 62% is made up of companies and individuals who, through their work, benefit a broad base of beneficiaries.
  • The three largest deals for 2014 alone are FirstRand (R23 billion), Sanlam (R14 billion) and Standard Bank (R11 billion).
  • The two largest deals waiting to pay out are Exxaro (R17 billion) and Naspers (R14 billion).

Bottom line, if you’re saying BEE doesn’t work then you’re talking kak. It does work, it just needs time, because clever people who know much more than us said so.

“The amount generated shows that recent statements that BEE deals do not create substantial value are false,” said Stuart Theobald of Intellidex.