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Byline: Sibonelo Radebe
Here THE STRUGGLE surely CONTINUES BEE deals have definitely been dealt a blow by the financial crisis, so now what happens? Many black economic empowerment (BEE) deals concluded over the past few years have technically gone under as a result of the global financial crisis and will have to be re-engineered.
This view from the latest Ernst & Young mergers and acquisition report is one piece of evidence among many that indicate beyond doubt that official BEE ownership targets will be missed by a huge margin.
A research report commissioned by the SA Mining Development Association claimed that black groups hold less than 8% of SA's platinum mining industry. The report, compiled by consulting firm Kio Advisory Services, concluded that wealth redistribution initiatives have failed in the platinum industry.
The latest findings of BEE rating agency Empowerdex concluded that black people own about 5% of the companies listed on the JSE. That figure is watered down to less than 2% if you strip out indebted BEE holdings.
Research findings by trade union Solidarity that black ownership on the JSE reached 23% in 2008 have been widely dismissed as …