Implementation of Broad-Based Black Economic Empowerment in construction: A South African metropolitan area study

Abstract

The institution of Broad-Based Black Economic Empowerment (BBBEE) has had an impact on the economy in South Africa. Due to its extensive reliance on government procurement, BBBEE has had a substantial influence on the construction industry in terms of transformation imperatives. Although much has been achieved in the transformation of the sector, its empowerment initiatives are generally deemed to be less effective. This argument can be attributed to the impediments encountered by industry stakeholders, when implementing BBBEE. The central subject examined in this study pertains to the BBBEE implementation challenges in South African construction. In order to get to the depth of the identified issues in the reviewed literature, the qualitative method was employed for primary data collection. Eleven interviews were conducted with management representatives of major construction firms in the Nelson Mandela Bay Metropolis, through the use of a brief  questionnaire and an interview protocol. The empirical findings that emanated from the study show that most of the respondents were aware of the challenges associated with BBBEE implementation in the construction sector. However, very few are presently addressing the difficulties. This lack of action frequently promotes the exploitation of BBBEE by concerned parties. This exploitation leads to unethical procurement practices in the form of ‘fronting’. Based on the literature reviewed and the data that were collected, it appears that deterrents must be addressed before the implementation of the BBBEE initiative can begin to yield the desired benefits for all concerned parties in South African construction.

Keywords: Construction, empowerment, ethics, transformation, South Africa

Die instelling van Breë Basis Swart Ekonomiese Bemagtiging (BBSEB) het ’n impak op die Suid-Afrikaanse ekonomie. As gevolg van sy uitgebreide afhanklikheid van die regering het BBSEB ’n wesentlike invloed op die konstruksiebedryf veral in terme van transformasievereistes. Alhoewel daar al baie bereik is in die transformasie van die sektor, is die bemagtigingsinisiatiewe minder effektief.Hierdie argument kan toegeskryf  word aan die struikelblokke wat ondervind word deur belanghebbendes in die bedryf met die implementering van BBSEB. Die sentrale onderwerp wat in hierdie studie ondersoek is, handel oor implementeringsuitdagings van BBSEB in die Suid-Afrikaanse konstruksiebedryf. Om die diepte van die geïdentifiseerde sake in die literatuurstudie te kon verkry, is van die kwalitatiewe metode gebruik gemaak om primêre data te versamel. Elf onderhoude is gevoer met bestuursverteenwoordigers van groot maatskappye in die Nelson Mandela Baai-Metropool deur die gebruik van ‘n kort vraelys en onderhoudvoeringprotokol. Die empiriese bevindinge uit die studie toon dat die meeste van die respondente bewus was van die uitdagings wat verband hou met die implementering van BBSEB in die konstruksiesektor. Daar is egter min aanduiding van die aanspreek van probleme. Hierdie gebrek aan optrede bevorder dikwels die uitbuiting van BBSEB deur die betrokke partye. Hierdie uitbuiting lei tot onetiese verkrygingspraktykte in die vorm van ‘verenigde fronte’. Gebasseer op die literatuur wat geraadpleeg is en die data wat ingesamel is, blyk dit dat afskrikmiddels aangespreek moet word vóór die implementering van die SEB-inisiatief kan begin om die verlangde voordele vir alle die betrokke partye in Suid-Afrikaanse konstruksie te lewer.

Sleutelwoorde: Konstruksie, bemagtiging, etiese, transformasie, Suid-Afrika

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