Actionsa Wants 5 Levy On Business Profits To Replace Bbbee

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actionsa wants 5 levy on business profits to replace bbbee

ActionSA has proposed a new Opportunity Fund to help advance transformation in South Africa, supported by a 5 levy on company profits instead of enforcing Broad-Based Black Economic Empowerment BBBEE.

This is part of a range of proposals the party announced at an economic transformation media briefing on Wednesday 7 May.

ActionSA proposes Opportunity Fund levy for transformation

ActionSA leader Herman Mashaba said the governments implementation of BBBEE and Affirmative Action/Employment Equity policies has been weakened by all manners of incompetence and selective application.

He thus called for a national dialogue on transformation to develop alternatives to the failed policies of BBBEE.

He added that ActionSA will table a Draft Resolution in the National Assembly to establish an Ad-Hoc Committee, which will investigate, deliberate and shape urgent reforms aimed at achieving genuine and transformative economic justice.

The partys proposed essential policy levers on transformation include:

  • Inclusive Economic Empowerment.
  • Social Investment Grants.
  • Housing, Land Reform and Spatial Justice.
  • Gender Justice.
  • Social Cohesion.

On Inclusive Economic Empowerment, we are proposing a fundamental shift from elite enrichment to grassroots empowerment, Mashaba explained.

At the centre of this approach is the Inclusive Economic Empowerment Act, which will establish a bold new vehicle: the Opportunity Fund.

This fund will replace the failed BBBEE framework, through which the ANC African National Congress has tried - and failed - for two decades to engineer transformation by enriching politically connected tenderpreneurs.

The fund will invest in tertiary education, entrepreneurial stimulus and public infrastructure in under-served communities, he said.