A selected analysis of announced Black Economic Empowerment equity transfer versus effective net equity interest BEE shareholding [electronic resource]

The equity transfer of Black Economic Empowerment deals has been the basis that still defines the Black Economic Empowerment landscape. Black Economic Empowerment concepts are identified with endeavours in South Africa to increase the participation of Black people in business and the mainstream economy. In recent years, equity transfer has been the main benchmark to signify the extent to which a company is empowered. This new construct is Black Economic Empowerment. Black Economic Empowerment is a concept, which is broadly accepted in principle, but is still controversial in its meaning and practice. This report looks at the commonly, agreed and understood Black Economic Empowerment net equity transfer of selected Black Economic Empowerment transactions versus the effective net equity transfer. Its also examines the role that funding structures, funding institutions, the government and private sector play in Black Economic Empowerment transaction. The effect of debt in Black Economic Empowerment transactions, and the impact it has on the effective transfer of net equity interest to Black people will also be examine in this report. The study will also look into the need for Affirmative Action, the state of Black Business and its historical development and its contribution to Black Empowerment. The successes of Black Economic Empowerment transaction are contrasted against the transaction failures, while the report examines the cause of these failures. The findings of the study concludes that only one percentage of the selected transaction in the study yielded a net effective interest greater or equal to the announced transaction.

Grantor dc:publisher.institution

Department of Finance and Tax

Year dc:date.issued

2011

Author dc:creator

• Anyetei, Stanley

Advisor dc:contributor.advisor

• Holman, Glen

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/9044

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/9044