1. Broad-Based Black Economic Empowerment Amendment Bill, 2012
Regulatory Impact Assessment

2. Contents Introduction Background Policy objective
Policy options and risk assessment
Analysis of impacts
RIA findings, Recommendations and Responses

3. Introduction
The presentation relates to the Regulatory Impact Assessment (RIA) on the Broad-Based Black Economic Empowerment Amendment Bill, 2012
In addition to RIA, the Broad-Based Black Economic Empowerment Amendment Bill was considered by NEDLAC

4. Background
In 2003 the B-BBEE Act was promulgated into law, and a strategy for Broad-Based Black Economic Empowerment (B-BBEE) was released which defines B-BBEE as
“an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the numbers of black people that manage, own and control the country’s economy, as well as significant decreases in income inequalities”.

5. Background
The B-BBEE process includes elements of human resource development, employment equity, enterprise development, preferential procurement, as well as investment, ownership, and control of enterprises and economic assets.
Regulatory impact assessment of Amendment Bills:
Why is an amendment needed, and what does it try to achieve?
Is the amendment likely to achieve the desired outcome?
Evidence-based policy-making

6. Policy objective Key objective:
A substantial increase in the number of black people who have ownership and control of existing and new enterprises in the key sectors of the economy;
A significant increase in number of black people in executive and senior management of enterprises;
Boost and generate higher economic growth, job creation, skills, access to opportunities and poverty alleviation;

7. Policy objective Key objective:
Bridging the divide between the first and second economy;
Linking B-BBEE with the lead sectors identified for industrial policy to facilitate growth and employment;
Contribute towards the sustainable growth of small and medium enterprises;
Accelerate the participation of black people in the mainstream of the economy at all levels.

8. Policy options and risk assessment

9. Options and risks Policy options: Risk assessment
RIA best employed early in policy development – allows full identification of policy options
Risk assessment
Risk addressed by the Bill is that the South African economy will not perform at its optimal if majority of its citizen are still excluded from meaningful and sustainable participation in the growth and development of the economy. Furthermore, the Bill addresses the circumvention of the Act and ensures alignment of B-BBEE with other pieces of legislation.

10. Analysis of impacts

11. Introduction
Impact of changes proposed by the Bill were examined in five key policy areas, as follows:
Circumvention : B-BBEE Fronting;
Establishment of B-BBEE Commission;
Alignment of the B-BBEE Act to other key pieces of legislation and other policy instruments ( e.g. PPPFA, NGP, IPAP and Mining Charter );
Monitoring of B-BBEE in Public and Private sector; and
Redesign of the B-BBEE Verification Industry.

12. RIA Findings Recommendations and Responses

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