Ramaphosa’s Competition Bill means more BEE and less competition
13 February 2019
By signing the Competition Amendment Act into law today, President Cyril Ramaphosa further expanded the pervasive influence of B-BBEE and government’s bureaucratic dictates over business. The President’s promise to improve on South Africa’s “ease of doing business” in his SONA will suffer greatly, the business organisation Sakeliga said.
“B-BBEE represents a significant drag on the South African economy. If the economy doesn’t grow and develop, South Africa and its inhabitants will be no better off – despite claims of transformation and inclusivity,” says Daniel du Plessis, Legal Analyst at Sakeliga.
Sakeliga points to the Act’s ironic misunderstanding of monopoly and competition: “Government’s idiosyncratic idea of competition is cause for concern – especially in the absence of any real pledges to break highly problematic state monopolies and regulation that hamper open markets and free competition,”
Sakeliga would have preferred, instead, for Government to allow freer rein to real competitive forces – and not a system that entrenches different rules for different racial groups.