Regulations to prohibit white-owned enterprises from doing business with State 

27 March 2017

AfriBusiness is currently consulting with its legal team about the restrictions placed upon businesses, specifically the pre-selection criteria, in the Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000) (the PPPFA).

The PPPFA will ensure that white-owned businesses will have an immense struggle to comply with all the regulations prescribed by the Act, as well as the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003). It is already almost impossible for white-owned businesses to comply with these regulations and to be awarded tenders by Government.

“For the past 23 years businesses have bent over backwards, conformed and complied with all the legislation and regulations that Government has imposed to redress previous inequalities and the promotion of their Black Economic Empowerment programmes and policies. However, it is now time for businesses to start protecting their interests and condemning discriminatory and prohibitive regulations. The economic and social impact of these regulations will lead to more job losses and a significant impact on the economy – especially on micro-, small- and medium-sized enterprises,” says Charles Castle, Manager at AfriBusiness.

The growth of South Africa’s economy is highly dependent on a democratic system that is based on equality and not on racial preference. The prejudiced scales of justice in this case are already tipped to the point of extremism. The government should strongly consider moving towards a meritocracy and halt their one-sided, race-based assault on minority groups in South Africa.

AfriBusiness urges all business that are affected by these regulations to approach the business rights’ watchdog with all the relevant information.

Issued by Charles Castle, Manager, AfriBusiness, 27 March 2017