The thrust of the legislation is to ensure the rapid infusion of previously disadvantaged persons into the mainstream of the economy, assuring them of both the position and financial reward which had previously been denied them.

The Government’s reforms had a dual focus, good governance and financial responsibility, and have created a preference system to address certain socially economic objectives and repair inequalities and discrimination. The legislation aims to find a more equitable participation of all sectors of society in economic activity in South Africa. It contemplates that persons who were previously disadvantaged, will have to be brought into industry and that there will be a transfer of skills to these individuals who will now become part of established enterprises. At the root of this legislative reform is the Constitution of the Republic of South Africa Act, No 108 of 1996 (“the Constitution”).

Two species of legislation promulgated since 1994 illustrate this drive— one affecting the public sector and the other the private sector. Procurement by the Government is now governed by a series of Acts and the Broad Based Black Economic Empowerment Act, No 53 of 2003, has been promulgated to compel the South African private sector to ensure that there is an effective participation by previously disadvantaged persons in the economy.